Paid in cash

hamsterdance · June 2013

So I have read that getting paid in cash can be a barrier to getting approved to a mortgage, that basically they won't count this income. Has anyone ever been through this? What do you do? I get about 1000 of my income each month in cash, which is pretty significant.

BrittP10 · June 2013

Is it under the table ? Like, do you claim it on your taxes ?

hamsterdance · June 2013

It is not under the table. I submit a tip report to my employer once a month and claim 100% of both cash and credit tips that I get. I take home all my tips in cash on the same day. Most of it gets deposited to my bank account within a day or two. Some of it gets spent.

BrittP10 · June 2013

I don't know why that would not be counted as income, but I'm not an expert. I suggest contacting a loan officer , they would know specifics .

hamsterdance · June 2013

Yeah, I don't know. I've just read in a couple places that getting paid in cash and making regular cash deposits can be problematic, but I can't find anything specific about what you are supposed to do in that situation.

Mrs.H. · June 2013

If you claim it then bring your tax return in place of paystub.....to show you DO earn a specific income.

I am guessing it isn't reported tho.............and you cant have it both ways!

entropicbeauty · June 2013

I believe you will just have to explain where the money comes from. Any deposit over I believe $200 has to be explained (or at least they asked for explanations from me when processing my mortgage application).

Trixeetrix · June 2013

The only thing I can think of is that tips (like bonuses) are not guaranteed income, meaning that number can vary depending on certain factors. However, I think you should talk to your loan officer like PP said.

hamsterdance · June 2013

Mrs H. I already said that I report 100% of my tips. But thanks for making assumptions about me.

It's going to be a couple of years yet before we have enough saved up to start looking. Should I talk to some now anyway? Even though I cannot technically count on getting a certain amount in tips it is always the same within 100$ or so every single month.

Trixeetrix · June 2013

I don't think it would hurt to talk to someone now. It's better to be prepared and know up front so if they tell you that the cash pay will hurt you it gives you plenty of time to figure something out. When I got my mortgage the bank wanted letters from our employers stating our salaries. However they also asked for a copy of our W-2 forms for the past 3 years (in that case your income would show). I think maybe what you heard / read was referring to cash under the table payments as these are not in writing anywhere and cannot be verified. Best of luck to you.

Paid in cash

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