Category: Income

What do mortgage lenders use for income sources to qualify a person on a loan? What documentation do they need? What do I need to know about my income to apply for a loan?

Income

Income Qualification on Jumbo Loans – What to expect

Kristin M Eklund NMLS #1872091
Kristin M Eklund NMLS #1872091
Senior Mortgage Consultant NMLS 1872091 at NW Alternative Mortgage NMLS #1522364
30 year veteran in the mortgage industry, experienced in all phases of the mortgage process.
Have helped buyers of all types and financial levels and worked on 1000's of loans.
There is always something new!
Kristin M Eklund NMLS #1872091
Latest posts by Kristin M Eklund NMLS #1872091 (see all)

If you are getting a jumbo loan, they aren’t necessarily harder to qualify for than conforming loan amounts, though you do need to have adequate income in order to manage a higher payment obligation. These types of loans are designed for borrowers who need to borrow more than the maximum …

Income

When you have no income or not enough income to qualify for a home loan there are options

Kristin M Eklund NMLS #1872091
Kristin M Eklund NMLS #1872091
Senior Mortgage Consultant NMLS 1872091 at NW Alternative Mortgage NMLS #1522364
30 year veteran in the mortgage industry, experienced in all phases of the mortgage process.
Have helped buyers of all types and financial levels and worked on 1000's of loans.
There is always something new!
Kristin M Eklund NMLS #1872091
Latest posts by Kristin M Eklund NMLS #1872091 (see all)

Adding another person as a Co-Borrower on the loan to qualify for income In situations where the borrower just doesn’t have enough income to qualify or the income that they earn somehow does not fall in acceptable categories to be used for qualifying, a co-borrower may be the easiest solution. …

Income

Details on specific types of self employed income

Kristin M Eklund NMLS #1872091
Kristin M Eklund NMLS #1872091
Senior Mortgage Consultant NMLS 1872091 at NW Alternative Mortgage NMLS #1522364
30 year veteran in the mortgage industry, experienced in all phases of the mortgage process.
Have helped buyers of all types and financial levels and worked on 1000's of loans.
There is always something new!
Kristin M Eklund NMLS #1872091
Latest posts by Kristin M Eklund NMLS #1872091 (see all)

Someone who is self-employed is defined as a person who has a 25% or greater ownership position in a company or receives a 1099 document for their income. In some cases a borrower may own less than that, but because it is a major source of income and the ownership …

Income

Other Income Types of Income that Count When Getting a Mortgage

Kristin M Eklund NMLS #1872091
Kristin M Eklund NMLS #1872091
Senior Mortgage Consultant NMLS 1872091 at NW Alternative Mortgage NMLS #1522364
30 year veteran in the mortgage industry, experienced in all phases of the mortgage process.
Have helped buyers of all types and financial levels and worked on 1000's of loans.
There is always something new!
Kristin M Eklund NMLS #1872091
Latest posts by Kristin M Eklund NMLS #1872091 (see all)

Calculating income for Alimony, Child Support or Separate Maintenance is done by using the actual amount being paid monthly. It must be documented that it will continue for at least three years after the date of the loan application and will need to be verified. A copy of the separation …

Income

Income Calculation for a Home Loan – How Lenders calculate qualifying income for a mortgage

A lender uses your monthly gross (before taxes) income as the basis for calculating the allowable ratio of housing expense to income. The old rule of 28/36 says that your new house payment, that includes: loan payment, taxes, insurance, HOA dues and any mortgage insurance in total should not be more than 28% of your gross monthly income and your new house payment plus other recurring installment and revolving payments not exceed more than 36% of your gross monthly income. With the advent of automated underwriting those ratios can go higher. This means you might get approved for a payment/loan amount higher than that.

Income

Happy about being newly self-employed? There are special mortgage programs available

If you are newly self-employed as in under a year, there are some offbeat programs in the Non-QM (non-qualified mortgage – the new subprime) space that can help you. Additionally more traditional programs like FHA and Freddie Mac will often look at you if you have at least 12 months under your belt and one year of filed tax returns and profit and loss.

Income

Mortgage Lender Self-employed Income Calculation and Qualification

Mortgage lenders on traditional programs like FHA, VA, USDA, Conventional and regular JUMBO loans calculate income based on the amount of income that is reported to the IRS for self-employed borrowers. You can do it yourself by reviewing your tax returns and pulling out some of the numbers. The idea is to distill the income down to after expenses, but before taxes. Any paper losses like depreciation or business use of your home do not count into the expense portion of the calculation.