USDA will deduct the unreimbursed employee expenses that are reported on Form 2106. This may affect the client’s ability to qualify, so call me first!
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Answer: [tweet-start]USDA deducts unreimbursed employee expenses reported on Form 2106 from a client’s income even if it is salary income.[tweet-end] [tweet-start]FHA only requires the deduction of 2106 expenses (or even mentions these expenses) when a borrower has more than 25% commission income. [tweet-end] You must deduct the 2106 expenses from the regular income. Reference: Ref: […]