Opinions, suggestions and advice please

[Anonymous]

Question, what income will lenders go by? 2015 and 2014 were rough years. I am trying to figure out if we should buy at the end of 2016 or if we need to wait until beginning of 2017 for our tax statements. We are looking at 200k-225k homes outside of Dallas

To make a long story a little bit shorter:

I have been in same industry and received a salary+ commission for 6 years. I had a 6 month gap of unemployment from being laid off and staying home with baby. Wife has worked as a teacher with salary/ hourly for 7 years. She stayed home after our son was born and after I found a job again. She will permanently return to work this August 2016.

2013 wife gross -43,000
2013 me -47,000

2014 was a hard year. Unexpected high risk pregnancy, a lot of missed work and my wife did not return to work 1st semester of school (August 2014-Dec 2014).
2014 wife - 36,000
2014 me - 40,000

2015 was a crazier year. I lost my job 1.3.2015 and my wife (who was not planning on returning to work yet) went back to work. I stayed home with our 2 month old child and received unemployment until July. I started work in July with my new employer. My wife did not return to work for 1st semester 2015 (August 2015 - Dec 2015).
2015 wife - 32,000
2015 me -29,000 unemployment pay included

2016 we are back to normal. Our son will be 2 years old and my wife will return to work 1st semester this August full time. I have been with my current employer since July 2015.
2016 wife- contract signed 53,000 from August 2016 to August 2017 monthly pay
Me- yearly salary 36,600/ yearly commission 24,000- 30,000 or 60,600-66,600 total a year.

Any feedback is appreciated.

[Anonymous]

My lender looked at the last two tax returns and also current pay stubs. I believe they average the income over the two years. Hopefully somebody in mortgages chimes in.

[Anonymous]

Thanks I have heard that too. But I didn't know if it would be different with less than the "normal" pay due to staying home with a new baby.

[Anonymous]

You will be able to use your current salary income, and your commissions will be averaged over the last two years. If commissions are going down, they may not be counted - no problem if commissions are flat or trending upwards.

You said your wife is getting a one year contract starting in August. What line of work? Is it through a staffing agency? Does she have a history of contracted work or will this be the first time?

[Anonymous]

My wife is a teacher. She worked for the same private school for 6 years. Sept 2010- Sept 2015 full time at the private school paid hourly same hours a week 44000 a year (minus maternity leave in 2014). From sept 2015 until now She stayed home with our son but would substitute at the private school occasionally with same hourly pay.

She signed a year contract with a public school from August 2016- August 2017. 53,000 a year salary paid once a month. She will renew contract next year.

I have been in insurance and paid the same way since 2011. Weekly salary + monthly commission. Minus jan 2015- July 2015 I was laid off, collected unemployment and stayed home with our son while wife went back to work.


My commission is consistently between 2000-3000 a month. Lowest it has been was 1700 and the highest was 6000. High and low commission where unusaul months.

To sum it up from Sept 2014 to August 2016 one of us has stayed home with our son. I collected unemployment when I stayed home with him for 6 months.

[Anonymous]

Sorry, forgot to add that 1 year contracts are normal for teachers. Teachers can renew or terminate their contract at the end of each year.

[Anonymous]

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@Anonymous wrote:
Sorry, forgot to add that 1 year contracts are normal for teachers. Teachers can renew or terminate their contract at the end of each year.

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Her income should be able to be used, but it may require her to be back at work for 6 months first with that long of a gap in employment. Your commissions are averaged by the year, so your lender will look at 2014, 2015, and YTD. As long as your YTD commission is strong you should be able to use it.

[Anonymous]

Thank you for your response. I love these forums.