FHA – Employed by Family Member: Why does FHA require personal tax returns for a W2 employee of a family-owned business?
Answer: Personal tax returns will verify that the borrower is not an owner of the family-owned business. The 2016 and 2017 taxes will be required. The qualifying income will be calculated per the guideline below. Reference: 4000.1, II, A, 4, c viii. Employed by Family-Owned Business (TOTAL) (A)Â Definition: Family-Owned Business Income refers to Employment Income [...]