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Answers (5)
- Larry Morris CMPS, "Oregon Mortgages"
- Contributions:45
Justin has a good point. If you write off a bunch of expenses your income could be greatly reduced. Look for a Loan Officer who is competent with tax returns and commissioned borrowers.
It's definately best to get credit approved first with he lender actually looking at your income and giving you a figure that they feel comfortable with. While this takes more time upfront, you will be able to make a strong offer once you have a lender credit approval.
It's definately best to get credit approved first with he lender actually looking at your income and giving you a figure that they feel comfortable with. While this takes more time upfront, you will be able to make a strong offer once you have a lender credit approval.
- Justin Kennedy
- Contributions:692
qualifing income: since you are considered self employed in the lenders eyes ( commison income is >25%) they will either use 2007/2008 1040 average minus any 2106 expenses (sans some auto allowances, standard or strightline business mileage depreciation) or if you had any base salary income increases an alternate income documention would be a fully executed written verification of employment breaking down 2007/2008 and ytd income by base, comm, allowance etc. i highly doubt an UWer will give you ytd commisions but they may allow base + 2007/2008 commisons minus the avergage 2106 expenses( if any ) from 1040s. then use the extra commison as comp factor (not effective to qualifing)
now USDA household income limits - depending on size of house hold 1-4 or 5-8 persons and location these number vary. the UWer will use the avergae of 2009 commsion and base salary - worse case they use higher income.
now USDA household income limits - depending on size of house hold 1-4 or 5-8 persons and location these number vary. the UWer will use the avergae of 2009 commsion and base salary - worse case they use higher income.
- cbw10
- Contributions:2
Thanks for your input. That's pretty much what I figured. Even with my increased commission I am still within the qualifying range for the loan--my concern is that I will not qualify for as much mortgage as I want (and can now afford) since my past year's averages will bring down my income so significantly. Will a good l/o be able to work this in my favor somehow?
- Larry Morris CMPS, "Oregon Mortgages"
- Contributions:45
The USDA poses an interesting dilemma.
Most lenders will take your new income with it's increased earning potential and convert it to an annual figure to see if you qualify for the program. They will then take your total earnings over the last 12 months to 2 years (depends on the lender) to qualify you for the mortgage.
Congrats on the raise. I hope it doesn't push you over the limits. FHA might be an option, but then you have loan limits...
Most lenders will take your new income with it's increased earning potential and convert it to an annual figure to see if you qualify for the program. They will then take your total earnings over the last 12 months to 2 years (depends on the lender) to qualify you for the mortgage.
Congrats on the raise. I hope it doesn't push you over the limits. FHA might be an option, but then you have loan limits...
- Key Lock Lending
- Contributions:100
Although you won't get the entire increase added to your income the new amount will be averaged in along with the preceding 2 yrs commissions.
Be mindful that you don't want to make too much money for the USDA loan. If you make more than the areas median average than it will exclude you from this type of financing.
Here are two links to help you
Here is a link to determine property eligibilityhttp://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
Here is a link to determine income eligibilityhttp://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state&NavKey=income@11
Good luck with your financing
Be mindful that you don't want to make too much money for the USDA loan. If you make more than the areas median average than it will exclude you from this type of financing.
Here are two links to help you
Here is a link to determine property eligibilityhttp://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
Here is a link to determine income eligibilityhttp://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state&NavKey=income@11
Good luck with your financing
How will increased commission figure into mortgage qualification?
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