Another employment issue....

[jwpezd]

I am only five days into this and am exhausted of worrying....

My wife and I are going USDA guaranteed our scores are both over 640. Hers are close to 700. She has three unpaid two year or older collections. None over 600.
I have a lot of lates from 12months and older.
Couple of concerns-
1. My wife is a hair stylist has been at the same salon for exactly 2 years. For the first six months she made a small hourly wage because she was training. After completing training she moved to commission wher she makes 40-50% of any transaction. Her income has raised steadily. Se only shows 12800 on 2011 w2 and 26900 on 2012 w2 this does not include tips this year she is on track to make even more according to her trends. My concern is she has only been on commission for 18 months. How is underwriting going to determine her income for our DTI to qualify. I know 41% on the back end is the cutoff I just wasn't sure..... Please any help would e great or answers..... Thank you

[tooleman694]

USDA goes up to 48 percent on the backend with a waiver.

[jwpezd]

Don't you have to be 660 and higher for that?? I am at 654 and the wife is higher?? I'm actually worried they are going to even include her income at all???

[tooleman694]

Yeah your gonna need a 660 score, you need a couple more points.

[jwpezd]

If your not at 660 and say I am at 41.8% is it a flat out no denied??

[tooleman694]

Im not a LO so I don't know, but I think having over a 660 is used as a convincing reason to allow it.

[playboy]

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@jwpezd wrote:
If your not at 660 and say I am at 41.8% is it a flat out no denied??

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Per USDA's underwriting suggestions, if you don't have the 660 you'll need other compensating factors.  Those factors can be found in the underwriting suggestions.

[jwpezd]

Hmmm. Okay. Now if I'm over 640 will they still ask for rental verification, and are they going to be okay with my wife only being on commission for 18 months