“I Need Your 2016 Tax Returns to Make the Debt Ratio Work”

“I Need Your 2016 Tax Returns to Make the Debt Ratio Work”




Hi Joe,

Happy Holidays!  I'd like to look into doing a refi on both rental properties as soon as I get my 2016 taxes done.  My debt to income should be considerably better.  Should we get it going now?

Regards, Mike


For self-employed borrowers that could not make their debt ratio work to get a mortgage in 2016 and the income numbers will be better with the 2016 returns, then waiting for the returns to be completed is the right way to handle getting a mortgage accomplished in the New Year.


This client had below average income in 2014, so waiting for the 2016 returns is the right way to insure a positive result. He also knows that he and his accountant need to understand the goal of showing more income rather than writing off more which will hurt the bottom line.


Mike will be prepared for sure!


Image courtesy of StuartMiles/Freedigitialphotos.net

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com



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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Comment balloon 6 commentsJoe Petrowsky • December 21 2016 03:43PM


Patience and dedication are needed to improve debt ratio - Mike obviously has both! 

Posted by Kat Palmiotti, The House Kat (Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com) almost 2 years ago

Sometimes it takes a little extra time to get where you want to be.

Posted by Stanton Homes, Design/Build Custom Home Builder in North Carolina (Stanton Homes - New Home Builder) almost 2 years ago

Good morning Joe. The self-employed can no longer have it both ways! Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) almost 2 years ago

Question for you Joe, at one time I thought this type of income was averaged over so many years. Is this the way it is now?

Posted by Joe Pryor, REALTOR® - Oklahoma Investment Properties (The Virtual Real Estate Team) almost 2 years ago

Good morning Joe. This is focused and clearly your client understans the process.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) almost 2 years ago

HI Joe: Coincidently was just talking about this with my client. He is self employed, makes a good income, and legally takes his write offs which end up ruining his chances of getting a mortgage. There are a lot of people in the selection employed arena that have to forego deduction's to qualify for a mortgage. Any other suggestions?

Posted by Janice Hope Zaltman Realtor,LEED AP (United Realty Group) almost 2 years ago