Question about mortgage and perdiem

@ChaoSS, yes, yes, you do pay more, and your AGI (the numbers the bank uses) stays the same, either way.

When getting per diem pay, you don't pay payroll taxes, roughly 7.5% of your income.

 

I work in the pipeline industry I make roughly 70000 a year that is taxable and another $60,000 that is non-taxable is there any way that they can use my non-taxable income towards my mortgage. My non-taxable income is per diem per day and my mileage thank you

 

Just talk to a different mortgage company. They're in the business to make loans so they can get their commission. One of them will be able to fill out the paperwork just right so that you can get approved.

Pro tip: Only buy a house that you qualify for with the income that you earn without the per diem allowance. Never buy ALL the house you can afford. You'll thank me later.

 

THIS is exactly why I’ve always refused per diam. I’ve had three mortgages in the last 15 years and not had one single problem getting approved for these or a number of smaller signature loans.

I’m not jumping through hoops and/or talking to some guys brother in law who knows a guy......to get approved for a loan. I’m one of the 90% who in no way shape or form would benefit from per diam.

 

Let's take a close look at this argument. M&IE ('per diem") reduces your federal, state AND social security liabilities. If we assume 25% federal, 8% state and 7.5% FICA, that's 40.5% that doesn't go to various governments.

After taking per diem, your taxable income goes down. That has consequences. As mentioned, it is harder to qualify for loans. Your social security contribution is reduced. Payout under workman's comp are reduced.

On the other hand, if you have kids in college, or buy your health care on the exchange, the lower taxable income will significantly reduce your costs.

So, on the plus side, you reduce your taxes and FICA, and you can use that money to invest in your retirement and long term disability policies cheaper than having the government provide social security and work comp. You will be far, far ahead, net, compared to giving your money to the government. If you are disciplined. Other income based programs, like scholarships and health care become cheaper.

On the negative side, you won't have as much opportunity to give your money to banks in the form of interest. There's two reasons that's not a bad thing. One is that you won't need to borrow, because you have money in your pocket. The other is that banks' lending limits are too light to begin with. If you look at what banks use for maximums for mortgages and car loans, they are much higher than a prudent person would take out. In other words, if you max out your mortgage while taking per diem, you are still at the max where a fiscally wise person would want to go.

 

Did you ever find another company that deals with trucker mortgages?