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New Visitor
Posts: 2
Registered: ‎05-18-2013
0

Would I qualify?

Hello,

 

Long time lurker and first time poster. I would like the thoughts of this great community if my info below would qualify for a new build. I was looking to finance a $162,000 purchase.

 

My middle score is 670.

 

Income: $60,000-$70,000 (3+ years with the same company as a 1099 employee. However, I have set up an S corporation for direct deposit. I pay myself 40% each month of the direct deposit each month so I can pay my social security and personal tax each month)

 

Extra Income: $8,000/yr (steady for 10+ years) child support

Debts: 2 credit cards with 4% total util; $445.00/mo car loan (car loan is paid through my S corporation)

 

Thank you for your input.

 

 

Member
Posts: 6
Registered: ‎04-26-2013
0

Re: Would I qualify?

[ Edited ]

Based on my experience (I'm shopping for a house right now), with a mid-60's income and looking for a $175k house, the loan officer told me that my DTI ratio was well within tolerance (tax rate on the property is around 3%), so you are likely easily within range.  You can generally expect that your payment (with PMI, homeowner's insurance, and escrow) should be at or less than 28%-33% of your pay, with your total payments (including auto and cards) being less than 36-38% of your pay.  My numbers may be slightly off, though, but that's basically what I've been told (if I remember correctly =).


Starting Score: 603
Current Score: 652 | 655 | 656 from lender pull
Goal Score: 740


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New Visitor
Posts: 2
Registered: ‎05-18-2013
0

Re: Would I qualify?

Thank you for the reply. I'm concerned if they will ask if I own a business since I receive my 1099 pay check every month through my S corporation bank account and I just pay myself using quickbooks to calculate my federal income tax and social security I need to pay every month. I don't pay myself the entire payroll check, just about 40% and the rest stays under the corporation's bank account. I don't own a business per say, but I'm a 1099 contractor under my own corporation.

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