Problems obtaining a loan -- thanks to 2106 Form expenses!

[The Loanranger]

Please be advised, that not Lenders require 1040s Federal Income Tax Returns when verifying your income. If you are a W-2 Wage Earner, and you do not file a Schedule E (meaning you don't claim rental income), and you don't file a Schedule C (Self-Employed), then we only require W-2s for the past two years not your 1040s. We are required to verify your W-2 Transcripts with the IRS via a 4506-T, but not 1040s. Hope this gives you hope out there.

[Modification Specialist]

Background:

• Purchase Price of new home: $255,407 - 20% = $204,326.00
• P/I = 360 x 204k x 4.25% = $1065.
• Property taxes are roughly 1.2% of purchase price = $3065 /12 = $255.41
• Homeowners Insurance estimate $255k/1000/$3.50 = $893.92 /12 = 74.49
• Total estimate PITI Payment $1065 + $255.41 + $74.49 = $1394.90 < Purposed PITI payment)

Income Needed:

• Total estimated PITI Payment = $1394.90
• Divided by Affordablity ratio of 31% = $4466.68
• $4466.68 x 12 = $54k yearly income need to support the loan.

One of the underwriting conditons was you were turned down for not enough income.

Income:

• $39,000/12= $3250 monthly income
• 31% Affordability ratio = $1007.50
• Afford a payment not greater than $1007.50

** A major key issue is your credit history
This is your first home, not having a payment history on your credit report, payments towards installment debt like an auto or mortgage. Hence the need for a co-signer.

Saving up more now will 100% provide you with more options in the future.

Better yet - save up more for the down payment, 75% LTV or lower can have less closing restrictions, the best interest rates and have a lower payment.

Good Luck