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I am halfway through the mortgage process when I find out that one of the military annuities I get every month is stopping in October of this year. (Thank you Congress). Very poor timing and it causes a bit of an issue with my debt to income ratio. The mortgage company I am working with won't consider the income from my job because I haven't been there two years and I was not working (because I didn't need to) since 2003. However I worked almost steadily from 1972-2003 with short breaks when my children were young and I have been at my current job since May of 2016 and I received a raise on my one year anniversary. My income is higher than the annuity was.
Is this the standard procedure not allowing my income because I haven't been there two years? Are all mortgage companies going to tell me the same thing or should I try and find a different company, maybe Quicken?
Last edited by chiluvr1228; 07-20-2017 at 07:44 AM..
I am halfway through the mortgage process when I find out that one of the military annuities I get every month is stopping in October of this year. (Thank you Congress). Very poor timing and it causes a bit of an issue with my debt to income ratio. The mortgage company I am working with won't consider the income from my job because I haven't been there two years and I was not working (because I didn't need to) since 2003. However I worked almost steadily from 1972-2003 with short breaks when my children were young and I have been at my current job since May of 2016 and I received a raise on my one year anniversary. My income is higher than the annuity was.
Is this the standard procedure not allowing my income because I haven't been there two years? Are all mortgage companies going to tell me the same thing or should I try and find a different company, maybe Quicken?
YES, standard procedure unless you're dealing with a local bank who portfolios their loans or a credit union that might have looser guidelines.
She doesn't need a financial advisor to find out the underwriting guidelines for approval. I spent many years in mortgage. Granted, I am now retired since 2008. But from what I hear it is tougher to get a mortgage now since the big fiasco.
Standard Freddie/Fannie guidelines used to be referred to as 2, 2, and 2. Two years good credit including housing payments, two years on the job and two years in current residence. If she is putting down a big down payment and everything else is good, no late payments, savings remaining in the bank after purchase, employer can write a letter that states something to the effect of she's a great employee and we plan to keep her barring any unforeseen circumstances, maybe they could have management make an exception. But everything else has to be very very good! No other weak aspects of the deal.
They couldn't care less about what she did from 1972 to 2003. It has no bearing on today.
YES, standard procedure unless you're dealing with a local bank who portfolios their loans or a credit union that might have looser guidelines.
She doesn't need a financial advisor to find out the underwriting guidelines for approval. I spent many years in mortgage. Granted, I am now retired since 2008. But from what I hear it is tougher to get a mortgage now since the big fiasco.
Standard Freddie/Fannie guidelines used to be referred to as 2, 2, and 2. Two years good credit including housing payments, two years on the job and two years in current residence. If she is putting down a big down payment and everything else is good, no late payments, savings remaining in the bank after purchase, employer can write a letter that states something to the effect of she's a great employee and we plan to keep her barring any unforeseen circumstances, maybe they could have management make an exception. But everything else has to be very very good! No other weak aspects of the deal.
They couldn't care less about what she did from 1972 to 2003. It has no bearing on today.
huh, thats interesting- a friend just moved to town a few months ago and got a mortgage (typical 20%down) with just an offer letter from her new employer (its not an extension of her last workplace either- its a truly new employer)- I just assumed thats all you needed- she does have pretty good credit.... though....
huh, thats interesting- a friend just moved to town a few months ago and got a mortgage (typical 20%down) with just an offer letter from her new employer (its not an extension of her last workplace either- its a truly new employer)- I just assumed thats all you needed- she does have pretty good credit.... though....
You can get a mortgage without working at a job for two years. I've done it twice. It can be 'messier' with less than two years in. I know Freddie will not count overtime or bonuses until you've been on the job for two years. Fannie will though. Part time employment won't count with less than two years (for any type of loan to my knowledge).
huh, thats interesting- a friend just moved to town a few months ago and got a mortgage (typical 20%down) with just an offer letter from her new employer (its not an extension of her last workplace either- its a truly new employer)- I just assumed thats all you needed- she does have pretty good credit.... though....
If she's been in the same line of work for a decent amount of time and the previous employment record and pay is good and verifiable, and it's a profession, not just a job, especially if she moved for the job, then that would be acceptable to some lenders. Like if she's a nurse, CPA, etc. A career professional. And since the move explained why she relocated that makes sense as well.
Back in the old days, it used to be ok to have one exception (to the investor guidelines) if it was explained well, made sense and the rest of the loan package was otherwise within guidelines. Then when things got crazy, they started to make exception after exception because there were so many loans being done, the lenders got greedy and knew they could get away with it. So unless the loans were going to be retained by the lender (portfolio lending), they would package them up in a pool for sale to the investors. Investors being big entities that bought many loans such as Goldman Sachs. And when the investors would come to the lender to review the loans for sale, they would pick maybe one out five or ten to audit for adherence to the guidelines. They could kick out any loans they didn't want from the package. Those loans would be put into a different pool or package. The packages were sold according to credit grade, loan to value, types of properties, etc. Each grade would be priced accordingly.
Anyway, mortgage underwriting is never black and white. But after the whole financial debacle, they tightened things up a lot. It went from anyone could get a loan to no one could get a loan because the house of cards came down and the warehouse banks weren't fronting the lenders the money to stay in business. My career, 15 years in mortgage simply ceased to be as did many, many others in the industry.
Nothing brings a mortgage company to heel faster than when you tell them you found someone to do the loan. Find someone that can do the loan and if you don't have a loan commitment in a week, move the loan.
I'm doing a VA loan, they require a credit score of at least 640, my credit score is over 700, no late payments on anything in over five years, credit cards paid off except for one with a $4500 balance (I always pay 3x the minimum payment) and a letter from my current landlord stating I always make my payments on time and have for the last 5 years. Rent started out at $700, is now $950. I have a military pension and SSDI and unless the government goes nuts my income is guaranteed which is more than can be said for many jobs these days.
I also sent the mortgage company my resume from my previous job (per her request) so they could see I'm basically doing the same type of work I always have. The appraisal is scheduled for Tuesday. It's all in the hands of the underwriters now.
BTW what is wrong with Quicken or Rocket?
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