**EXHIBIT12.1**

The followingtable displays our ratio of earnings to fixed charges and ratio of earnings tocombined fixed charges and preferred stock dividends for the periods shown: (1)(2)

**IMPACMORTGAGE HOLDINGS, INC.**

**RATIOOF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO**

**FIXEDCHARGES AND PREFERRED STOCK DIVIDENDS**

**(dollar amounts in thousands)**
| ** **                                                          | ** ** | **For the Nine Months** | ** ** | ** **                                                   | ** ** |
|---------------------------------------------------------------------|------------|----------------------------------------|------------|--------------------------------------------------------------|------------|
| ** **                                                          | ** ** | **Ended September 30,**      | ** ** | **For the Year Ended December 31,** | ** ** |
| ** **                                                          | ** ** | **2006**                               | ** ** | **2005**                                                     | ** ** | **2004** | ** ** | **2003** | ** ** | **2002** | ** ** | **2001** | ** ** |
| ** **                                                          | ** ** | ** **                             | ** ** | ** **                                                   | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** |
| Net earnings (loss)                                                 |       | (27,393                                | )          | 240,607                                                      |       | 244,187 |   | 147,430 |   | 41,918 |   | (7,469 | ) |
|                                                                |       |                                   |       |                                                         |       |   |   |   |   |   |   |   |   |
| Add: Fixed charges                                                  |       | $                                      | 978,036    |                                                         | $          | 1,048,662 |   | $ | 413,584 |   | $ | 209,470 |   | $ | 127,851 |   | $ | 108,224 |   |
|                                                                |       |                                   |       |                                                         |       |   |   |   |   |   |   |   |   |
| Net earnings (loss)  plus fixed charges                             |       | 950,643                                |       | 1,289,269                                                    |       | 657,771 |   | 356,900 |   | 169,769 |   | 100,755 |   |
|                                                                |       |                                   |       |                                                         |       |   |   |   |   |   |   |   |   |
| Fixed charges                                                       |       | $                                      | 978,036    |                                                         | $          | 1,048,662 |   | 413,584 |   | $ | 209,470 |   | $ | 127,851 |   | $ | 108,224 |   |
|                                                                |       |                                   |       |                                                         |       |   |   |   |   |   |   |   |   |
| Preferred stock  dividends                                          |       | 11,016                                 |       | 14,530                                                       |       | 3,750 |   | — | (3) | — | (3) | 1,575 |   |
|                                                                |       |                                   |       |                                                         |       |   |   |   |   |   |   |   |   |
| Total fixed charges and  preferred stock dividends                  |       | $                                      | 989,052    |                                                         | $          | 1,063,192 |   | 417,334 |   | $ | 209,470 |   | $ | 127,851 |   | $ | 109,799 |   |
|                                                                |       |                                   |       |                                                         |       |   |   |   |   |   |   |   |   |
| Ratio of earnings to  fixed charges                                 |       | —                                 | (5)        | 1.23                                                         | x          | 1.59 | x | 1.70 | x | 1.33 | x | — | (4) |
|                                                                |       |                                   |       |                                                         |       |   |   |   |   |   |   |   |   |
| Ratio of earnings to combined fixed charges and preferred dividends |       | —                                 | (5)        | 1.21                                                         | x          | 1.58 | x | 1.70 | x | 1.33 | x | — | (4) |
|                                                                     |            |                                        |            |                                                              |            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

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(1)  Earnings used in computing the ratio ofearnings to fixed charges consist of net earnings before income taxes plusfixed charges. Fixed charges include interest expense on debt and the portionof rental expense deemed to represent the interest factor.

(2)  Financial information for the years endedDecember 31, 2003 to 2001 reflects accounting restatements andreclassifications for prior periods. In addition, prior to the consolidation ofIFC on July 1, 2003, the method used to calculate the ratio of earnings tofixed charges and preferred stock dividends reflects the consolidated netearnings of IMH less net earnings of IFC plus dividend distributions from IFCto IMH.

(3)  No preferred stock dividends were paid duringthis period as IMH did not have any preferred stock outstanding.

(4)  Earnings were insufficient to cover fixedcharges. The amount of the deficiency for the year ended December 31, 2001was $7.5 million.

(5)  Earnings were insufficient to cover fixedcharges. The amount of the deficiency for the nine months ended September 30,2006 was $27.4 million.

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