Thank you for the reply. I think the timing here will be an issue and we may have to wait until we do our 2012 taxes to go forward. In 2010 and 2010, we each took equal payroll and "draws" but this year, I took all the payroll and 80% of the draw which won't be reflected until we file our 2012 taxes. Ill update this thread as we go through the process, we'll see what happens.
Hi all, I am looking for some information and advice. I am looking to get an FHA loan for a home (due to Ch. 7 BK 34 months ago I can't get a conventional loan). We own our own business (50/50 share holders) however the loan will be just in my name. How is income calculated in a situation like this? We take dividends throughout the year. Last year it was divided 50/50 but this year I took an 80% share. The home is a new build so it wouldn't be ready until next year which means we will use 2012 taxes and 2011 taxes for qualifying I am thinking. We would first need to get pre-qualifyed for the loan, is that the same process as getting the final loan and so, will they look at 2011 and 2010 plus P&L for 2012?