Reply
Super Contributor
DallasLoanGuy
Posts: 6,075
Registered: ‎07-03-2007

Re: Confused about how FHA counts income...


goodygoody wrote:

Hi there!  My husband and I would really love to buy our first home this summer, but I'm so confused about how our income will be calculated, hoping someone has a good grasp of this.  We are planning to use FHA.  We both have credit scores a little above 700.  No negatives on our reports.  Available credit around $10,000 each with UTI around 10%.  So I think our credit will be fine.  What I'm worried about is the income stuff. 

 

My husband has been an electrician for about 4 years, and makes about $37,000 a year.  I have been working part-time for a year, making around $10,000.  I am starting a new job in October, however, that pays $24,000, in basically the same field (college support staff).  Prior to a year ago, I was a stay at home mom for several years, with small children at home. 

 

Last year, my father passed away, leaving me a small inheritance (around $20,000), which I will report on our 2012 tax return.

 

So I have a bunch of questions, hoping someone can help!! 

 

Does FHA just average your income for 2 years of tax returns to determine what you qualify for? no Do they take into account if you have recently started making a larger income in this determination? (i.e. - what consideration will I get for my new job) you woul need a pycheck from the new job before closing

 

Will FHA count my inheritance toward our 2012 income?  this is not income

 

Another poster here once said that FHA will count income if you've worked less than 2 years IF you were a homemaker with small children.  Is this accurate? not entirely.... it is vague. the REAL answer is that the 2yrs in the same line of work can be waived if you are 'returning to the workforce' in the same line of work as your degree or a line of work you did previously  Does anyone have experience with this?  yep. Is there an actual FHA policy about this, or is it up to the lender?  FHA guideline Anyone know which lenders are more flexible about this? most should be able to do it  We'd really love to buy a house, but we have to be able to count my income in order to get a decent sized loan for our area.  Will we have to wait another year? likely just wait until you get the new job

 

Thank you thank you in advance.  Any advice is appreciated!!


 

 




* While I try to visit the forum often, please feel free to contact me directly with a link to your post if I fail to answer a follow up question.

* Lending across the entire 'Great State of Texas' since 2004
Regular Contributor
goodygoody
Posts: 199
Registered: ‎04-07-2009

Re: Confused about how FHA counts income...

[ Edited ]

Thank you!!  I would definitely have work info (paystubs) from the new job, because I'm starting it in 2 weeks, and we don't plan to apply till late spring.  Keeping my fingers crossed till then!!


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+