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I am running some calculations to see how much of a house we can afford. When I'm adding up our monthly debt amounts, do I include my wife's student loan payment? I am asking because only my income will be used for the mortgage calculation and information because she only makes $5000 a year from a part time job. I wasn't sure if it was just MY debt since just my income and information would be used for the mortgage. Thanks
It will depend on a few factors. Are you a community property state? Her debt is your debt. Are you getting an FHA loan? Her debt is considered your debt. Are you getting a conventional loan? Her debt should not be considered your debt...
Talk with your lender about your specifics. Do you need her $5k to offset debts for your ratios?
I live in PA. She has been at the same part time job since 2010. I don't think I'll need the $5k to offset the debts. Not sure about loan type yet, just doing some math first.
Also, my job includes a yearly bonus amount. Would the base salary+bonus factor in, or just my base salary?
Last edited by Rangoon03; 05-09-2013 at 02:00 PM..
I live in PA. She has been at the same part time job since 2010. I don't think I'll need the $5k to offset the debts. Not sure about loan type yet, just doing some math first.
Also, my job includes a yearly bonus amount. Would the base salary+bonus factor in, or just my base salary?
You would have to have a history of bonuses (for my bank, at least 2 years' worth) and normally they average them. Your employer would also have to certify the "likelihood" that they will continue.
Doesn't matter what the banks say you can afford, or what a calculator on a web page says you can afford. You need to do a budget and look at your monthly expenses and "you" need to say what your willing to and can pay per month.
I am running some calculations to see how much of a house we can afford. When I'm adding up our monthly debt amounts, do I include my wife's student loan payment? I am asking because only my income will be used for the mortgage calculation and information because she only makes $5000 a year from a part time job. I wasn't sure if it was just MY debt since just my income and information would be used for the mortgage. Thanks
If she is on the application than you need to use her debt too.
Yes the student loans matter. Here is a thought though. Since she is only working part time can she go back to school? Student loans that are not in repayment do not hold the same weight as student loans that you are paying on now. For an FHA loan if you can show that you won't have to pay for the next 12 months then they probably won't be counted as debt right now. FHA looks at the amount of income that is used to pay off debt that you currently have an obligation to pay off. If she is in school then her loans are deffered during the time she works toward completing her degree + 6 months after graduation, + additional deferments that you can arange based on income of the student. $5,000 is not a lot of income.
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