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URL:  http://boards.fool.com/thanks-gingko100-when-you-applied-to-refi-did-30536161.aspx

Subject:  Re: Debt-to-income ratio if self-employed Date:  2/11/2013  11:32 AM
Author:  holhealthprac Number:  124728 of 127815

Thanks Gingko100.

When you applied to refi, did the lender explain exactly how they calculate income and debt-to-income ratio for sole proprietors?

Do you know if the lender includes depreciation deductions as part of the income used to qualify? That would up my qualifying income by a couple thousand.

I know that if a lender uses average credit card balance to calculate debt-to-income ratio, I don't meet the 40% number. I pay the cards off every month, but my average credit card balance is high since I charge everything. If they use minimum required payment, I should be fine.
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