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Drawbacks not reporting income side jobs mortgage app

What are the drawbacks to not reporting income earned from side jobs on a mortgage application?

Harry Jensen, Trusted Mortgage Expert with 45+ Years of Experience
, Trusted Mortgage Expert with 45+ Years of Experience

The only drawback to not reporting side income on a mortgage application is that the lender will not use that income to determine what size mortgage you qualify for. Please note that most lenders only use the income reported on your tax returns to evaluate your mortgage application because they need to verify your income. So if you have not reported side income on your tax return then it will not be factored into your loan application. Most borrowers want to use an income figure that is as high as possible because it enables them to qualify for a larger mortgage amount. In your case, it sounds like you would prefer to only use your reported income and not your side income to qualify for the mortgage which works for you and is also consistent with lender guidelines. You can use our Mortgage Qualification Calculator to determine what size mortgage you can afford based on various income and debt levels.

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About the author

Harry Jensen, Mortgage Expert

Harry is the co-founder of FREEandCLEAR. He is a mortgage expert with over 45 years of industry experience. Over his career, Harry has closed thousands of loans for satisfied borrowers and now offers his advice and insights on FREEandCLEAR. More about Harry

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