Single dad who would love to buy a home for my 3 children.
687 middle score.
Looking at Chfa, USDA, or FHA. I have about 20k to put down.
My debt- 6 credit cards all under 20% or paid off 1 car lease $469 a month
No collections.
Only issue is INCOME. My previous job my hourly rate was $19 an hour and overtime was all over the place at 20-50 hours a week. I’ve been at my current job for 7 months and I have consistent hours and overtime hours. Pay rate is $22.50 at 40 hours and overtime is 30 Hours a week. (Around $7400 gross monthly)
Tax Return info 2016: 58k 2017: 71k
This year I’m expected to make $88k
I live in Colorado and I wouldn’t be able to buy a house under $300k. So my question is what are my chances on getting approved for over $300k? Are they going to go by my current income/overtime or base what I qualify for off my 2016 & 2017 returns.
Will I have to wait another year? Been going crazy trying to find an answer and I’ve talked to a mortgage lender who was absolutely no help.
1. Are you in the same industry and if you are how long? 2. If you are, would your employer write in the verification of employment stating that your 30 hours OT is guaranteed? 3. What are your minimum payments for your credit cards?
Yes, I’ve been in the same industry/same job title with no gap in employment for 4 years now. My current employer will have no problem writing a VOE. $60 for three credit cards ($15, $20, $25) only $1,000 credit limit and have used only $200 of it. The other remaining cards have a zero balance. Thank you.
You should be fine. Letter from your employer stating that 30 hours OT is normal and will continue would be good.. Also as long as your previous job states that you have been paid OT, then we can use OT income.
When I went for my preapproval, they didn’t even consider my current income or what I’m expected to make this year ($88k). They only combined my overtime from 2016 and 2017 (which I made 10-30k less) and gave me an income of $65k. I am trying to buy a new build home for $338k, and they denied me for insufficient income?
Wow OP our situation sounds very similar. Our income is 7706 a month and we are trying to build a house at around the same cost. Taxes where I am run about $9,000 yearly though on a house that price. Now I wonder if we will be approved when we try out in April. Did you apply with a big bank or a mortgage broker?
I’m sorry you’re in the same situation. We went with a local mortgage broker, who is our home builder preferred lender. We gave them a shot first because they are giving $5k towards closing costs, etc.
Overtime is ridiculous. I don’t see why they are basing what I qualify for financially on my overtime finances in 2016/2017 when I’m making $15,000-$30,000 more this year, and nothing is projected to change.
I have the exact same scenario with one of my clients right now. We are going to count the current OT because the employer has stated the OT will continue &!is basically guaranteed. You need a new lender, like me, that can utilize your current OT.
VA Mortgage Expert. Mortgage Banker lending in All 50 States. VA, FHA, USDA. Jumbo, Conventional. CAIVRS Expert.
. Did you get a letter from your employer that 30 hours OT per week is guaranteed?