FHA & USDA – Unreimbursed Business Expenses: What is the USDA policy on Form 2106 Unreimbursed business expenses when a borrower is salaried with no commission?
Answer: USDA deducts unreimbursed employee expenses reported on Form 2106 from a client’s income even if it is salary income. FHA only requires the deduction of 2106 expenses (or even mentions these expenses) when a borrower has more than 25% commission income. You must deduct the 2106 expenses from the regular income. Reference: Ref: HB […]