08-13-2011 10:12 AM
im young. i have about 30k saved up. i was pre approved by bank of america for 139k. i dont make alot of money. my w2 for 2010 only reports a gross income of around 29k'. since then i have gotten substantial raises. i gross close to 850 a week now and i should expect another raise in a couple months. i know banks are strict with lending. should i wait until my new w2 reports my new earnings before i apply? would a bank accept 30 pay stubs of a new income plus verified letter from accountant?
i also have a father with alot of equity who is willing to tap into it to help with a down payment. his credit score is close to 595 tho...very bad i know...however he has a great business thats been around for 40 years and a house thats worth 450k with only 80k outstanding on his mortgage....he was gona transfer his house in my name so i can access the equity but i dont think its that easy?!? if i wanted to use equity to help with dp he would need to apply and gift me the money??? his credit would need to be approved before thats an option??? im looking at houses in the 140 to 160 range. i was pre approved for that amount based on my earnings that are far less then what they are now....i woud need the dp money to pay the dif between my approval amount and price of property
08-27-2011 10:32 AM
If you received a raise then yes you'd just need to show a paystub reflecting the new rate of pay and that likely will be able to be used as your qualifying income - no letter from an accountant is required but the employer will likely need to verify the recent increase(s) so the underwriter can understand why your income is more than it was before when you still work the same amount of hours per week (paystubs for the past 2 years can also prove that to an underwriter). So if you went from, I'm just making stuff up, $12/hr to $18/hr, then they would take the $18/hr multiplied by the average hours worked per week. But if the increase in income was due to you working extra OT, etc. then that is always averaged over a 2-year period.
Yeah you can't just be added to your dad's house and refinance to take cash out - you need to be on title for at least 6 months in the situation you are describing. You may want to use some of the information you've read here at the FICO forums to help out your dad's credit.
Have you looked into down payment assistance programs? Where do you live?