100% Financing Zero Down Payment Kentucky Mortgage Home Loans for Kentucky First time Home Buyers

Kentucky Fannie Mae Mortgage Loans and  Unreimbursed Expenses Did you know that Fannie Mae no longer requires Form 2106 for Kentucky Mortgage Borrowers earning commission income?   FNMA is removing the different treatment of commission income based on the percentage of employment income, thereby treating all commission income the same.  Fannie Mae is Updating policy regarding commission income and unreimbursed business expenses due to recent changes made by the IRS that are effective with the reporting of 2018 federal income taxes. Note: This policy may be applied to 2017 tax returns as well. Removing the requirements for IRS Form 2106.FNMA no longer requires tax return documentation or tax transcripts to identify unreimbursed business expenses. (See notes regarding DU Messaging below) Changing the automobile allowance policy. The full amount of an automobile allowance may now be included as income and the lease...

Self-Employed and Business Commission Income for a Mortgage Loan Approval A borrower is considered self-employed if they own 25.00% or more interest in a business. The four basic types of business structures are: sole proprietorship, corporations, limited liability or “S” corporations, and partnerships. • The borrower must provide two years of individual federal tax returns and corporate partnership federal tax returns (if applicable to business). o Individual Federal tax returns show increasing self employed income over the  past two years, • A profit and loss statement (P&L) and a balance sheet is required if more than a calendar quarter has elapsed since date of most recent calendar year or fiscal-year end tax return was filed by the borrower. If income used to qualify the borrower exceeds the two-year average of tax returns, an audited P&L or signed quarterly tax returns obtained from the IRS are required. • The existence of the borrower’s business mu...