Does FHA insurers deny the request based on a loan that will be subject to inadvertent false statement in 2006?

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My co-petitioner in error to require the wrong form of taxes in 2006. He had a small amount of 1099 income (about $ 5,000), and used in place of form 1040EZ Form 1040, allegedly to be used profitably 1099. We know now that you do not want the form 1040EZ for 1099 earnings to be used. We think that means he does not pay Medicare and social security for this part of his income. Is this something that the insurer refuses to our credit? If they make the change in its 2006 Declaration and payment of the balance? This was not done on purpose, and it has a tax file simply wrong on the form. Should we fear that we are denied the loan because of this? All we know is perfectly fine with regard to our application.

3 Comments
  1. Reply
    Landlord
    January 25, 2011 at 4:27 pm

    I don’t think they will care, as long as he paid his income tax.

  2. Reply
    godged
    January 25, 2011 at 5:04 pm

    I doubt an underwriter would deny you for this. An amended return may have to be filed, but I don’t even think that will happen.

    I wouldn’t worry about something that hasn’t occurred yet.

  3. Reply
    Ed Atun
    January 25, 2011 at 5:13 pm

    The rules are very strict for the FHA loans. An amended tax return should suffice.
    I think the 1040EZ is allowed for small incomes or earnings. That is why it is EZ. So your example does not make sense. I think it is something else that is holding up this loan..

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