U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 02-23-2010, 06:00 AM
 
131 posts, read 392,589 times
Reputation: 65

Advertisements

I have a question and I'm hoping someone can answer it for me.
My husband is a chef and makes only about $35K/year. I do daycare out of our home and make about $14K/year. When we move to another state(not for years still) my husband will probably get a transfer within is company, so he will have a job lined up. I, however, am unable to do that, given the nature of my business (families will want to meet with me first, etc). So I will essentially be moving without a job.
When applying for a mortgage, will they count my income or will we have to qualify strictly on my husband's income? And how much would we qualify for? Thanks in advance.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 02-23-2010, 06:24 AM
 
28,460 posts, read 80,388,188 times
Reputation: 18651
Self employment / home based business always is much harder to verify than anything with a W2/1099. If you have documentation via 2+ years of tax returns that PROVE you know what you are doing you MIGHT find a lender to give SOME credit to your ability to earn, but given all the doubts /fears /hoops that lenders are putting on borrowers it is a long shot...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-23-2010, 09:08 AM
 
5,218 posts, read 13,307,906 times
Reputation: 4381
Quote:
Originally Posted by *~Kim~* View Post
I have a question and I'm hoping someone can answer it for me.
My husband is a chef and makes only about $35K/year. I do daycare out of our home and make about $14K/year. When we move to another state(not for years still) my husband will probably get a transfer within is company, so he will have a job lined up. I, however, am unable to do that, given the nature of my business (families will want to meet with me first, etc). So I will essentially be moving without a job.
When applying for a mortgage, will they count my income or will we have to qualify strictly on my husband's income? And how much would we qualify for? Thanks in advance.
A business like yours is tied to a specific location, so a lender will not be able to count any income for you until you have a new daycare business set up in the new state for at least one tax year.

I would suggest you move any debts like credit cards or car payments into only your name now and then qualify for the new home on your husband's salary.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-23-2010, 09:12 AM
 
131 posts, read 392,589 times
Reputation: 65
Thanks for the reply! But I've heard that the mortgage you can qualify for is about 3x your salary, is that right? If so, that would have us only qualifying for 105K Is there any way to qualify for more?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-23-2010, 09:59 AM
 
5,218 posts, read 13,307,906 times
Reputation: 4381
Quote:
Originally Posted by *~Kim~* View Post
Thanks for the reply! But I've heard that the mortgage you can qualify for is about 3x your salary, is that right? If so, that would have us only qualifying for 105K Is there any way to qualify for more?
That 3x is just a general guideline. I just qualified a teacher for a home that is 5 1/2X her income with 10% down.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-23-2010, 10:08 AM
 
28,460 posts, read 80,388,188 times
Reputation: 18651
Default And just to check-in...

Quote:
Originally Posted by TimtheGuy View Post
That 3x is just a general guideline. I just qualified a teacher for a home that is 5 1/2X her income with 10% down.
I am rather sure that they only way such a high ratio would make sense is:

a) there is literally NOT A DIME of DEBT in this person's credit report

b) they have a STELLAR credit rating because they have had used credit wisely

c) they have some significant assets (like 403b)

Even if the borrower that Tim has mind has these qualities I would hate to see them pour too much income into a home if they could rent for less, so I hope that they bought some place that they can live in and still comfortably but money into savings...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-23-2010, 11:45 AM
 
5,218 posts, read 13,307,906 times
Reputation: 4381
Quote:
Originally Posted by chet everett View Post
I am rather sure that they only way such a high ratio would make sense is:

a) there is literally NOT A DIME of DEBT in this person's credit report

b) they have a STELLAR credit rating because they have had used credit wisely

c) they have some significant assets (like 403b)

Even if the borrower that Tim has mind has these qualities I would hate to see them pour too much income into a home if they could rent for less, so I hope that they bought some place that they can live in and still comfortably but money into savings...
This is a 5BR/4BA home in the suburbs. Not too many rentals like that where I am at.

a) yep, had to payoff and close her one credit card
b) yep, A+ credit
c) just a small retirement account with about $18k balance

Sort of a similar situation as the OP. Fiancé will be moving in too. He has income that I could not count. Since there is PMI I could only go to 45% DTI. A person with 20% down could have actually have gone higher. Also did single pay PMI which helps DTI, and what a deal for the borrower. Pay 1.25% upfront, financed, and your done. No monthly. It's like your PMI is only for 2 years.

Just wanted to show that "norms" like 3X gross don't hold true for all.

Last edited by TimtheGuy; 02-23-2010 at 12:00 PM..
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages

All times are GMT -6. The time now is 12:19 PM.

¬© 2005-2022, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top