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Dallas self-employed income 35k, credit 725, willing down 20%

I am a first time buyer. Looking for home loan fit with my sistuation. 
Income 2012 = 20k ; 2013 = 35k
Will I able to get mortgage loan right now? If yes, how much maximum will I able to get? Thanks
  
  • May 02 2014 - US
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Answers (2)

It is good to see your income increasing year over year. You also provided good insight, just need a bit more info please. What is the minimum monthly payment on all the debt you service, i.e. credit cards, student loans, car payment, ect? On your schedule C how much deprecation did you have in 2012, 2013? How much are yearly property taxes on the properties you have been looking at? Your home affordability will be determined with the answers to these questions. Looking forward to helping you.
  • May 02 2014
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You would need to provide a mortgage lender your 2013 & 2012 federal tax returns (all pages and schedules) for them to make a determination on the maximum income they can use from your returns.  If the income your provided is the Net Profit from the Schedule C pages of your tax returns, lenders will average these 2 years over 24 months + and depreciation or depletion that you may also have on your Schedule Cs.  If your business is a partnership then you will have Schedule E's. 

Unfortunately, based on the income you provided your monthly payment with taxes & home insurance would have to be around $800 a month which isn't much at all.  If you can get a possible cosigner to go on a mortgage with you this will help.
  • May 02 2014
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