[DaniF]

Hi folks, I'm self employed and need to claim a bit more this year on taxes to get a mortgage. but don't want to over claim more than needed. I'm aiming for a 100k mortgage. talked to one mortgage lender who said I'd be safe claiming 35k. and there are numerous calculators out there but all come up with different figures. I'm looking at putting 3.5% down. and not necessarily looking to spend all of the 100k but would like to stay in the safe range of 80-100k as to not go house broke.
Any help is GREATLY appreciated!
Thanks a million
-D

[zthatzmanz28]

Bigger questionis how much down payment does a person have? Prior to the fall of 2007, I qualified for just over $100K with zero down with a $50K salary back in 03...probably never happen again. Not sure if anything less than 15%-20% will work today?

[dragon_fly_12]

Originally Posted by zthatzmanz28

Bigger questionis how much down payment does a person have? Prior to the fall of 2007, I qualified for just over $100K with zero down with a $50K salary back in 03...probably never happen again. Not sure if anything less than 15%-20% will work today?

Actually depending on the mortgage and the borrower's qualifying factors.

If the borrower is going through Homepath, FHA or a similar program, only needs 3-3.5% depending on the house. BUT - the house depends on if it passes inspections. You could be fully qualified just to get shot down at the last minute due to inspection.

For a gov't backed mortgage (Homepath, etc), you have to have a minimum median credit score of 650-660 I believe. There was a very recent change in criteria that brought up the minimum credit score. Prior to the change, a 620 qualified for most every program.

You have to show 3 credit accounts in good standing. Can be revolving credit cards, auto loans or personal loan, but it has to be an established account in good standing.

Two years of tax filings and in good standing with the IRS.

You have to show you have the down payment funds up front. You also have to provide the paper trail of where the money came from.

You have to provide copies of your bank statements for however many months the underwriting wants. The underwriter will nick-pick your bank account activity. Be prepared to explain transactions, specifically deposits - where the money came from, copies of the invoice if for business reasons, and anything associated with the deposit.

As a self employed, I'm sure there are more requirements that I wouldn't have any knowledge of.

I have recently seen a $40,000 income qualify for $150K with 3% down, and that income had about $18,000 in auto loans with a $500 credit card. How much debt liability is also a huge factor to contend with.

[Juliemac]

A good rule of thumb is 31% gross monthly for mortgage (with escrow) and no more than 40% of monthly gross for housing + other consumer debt payments. Just go to a mortgage calulator (bankrate.com) and figure the payment on 100K with rate quoted from your lender. the annual property tax should be on the county site. (or the realtor can provide this). good luck!