in 2014 my wife got laid off when she was 4 months pregnant. she collected unemployment and family leave. we had a combined income in 2013 of 175k. we had a combined income in 2014 of 150k (20k of that 150k was unemployment compensation). she has been out of work raising our son for over a year. she just started a 1099 position for another large company but the checks havnt started to roll in yet. if all goes well she earn maybe 40-50k gross by year end 2015. my salary is small. i make about 50k a year.
as it stands right now, would my income be all that a bank would consider when applying for a mortgage? technically she cannot produce a pay stub but our tax returns for the past two years have been pretty impressive. im well versed on ratios and if a bank would approve up to 45% that would give us close to 1800/month (mortage taxes insurance) i know 45% is a tough play for a bank to approve up to but we have great credit, we have over 20% to put down on a property and we have over 6 figures in the bank. we are considering homes in the 300k range and taxes in NJ are pricey around 8-10k yearly.
what we cant borrow we will cover with downpayments. but i want to avoid a large downpayment. i want to see what we can sell our house for an use the equity we earned in our house as the downpayment for the next home. i dont want to come out of our pockets in any capacity if we can avoid it.
will a bank consider any income of my wifes? should we wait until year end earnings come in? how will banks look at 1099 income if its in the same industry as she was working in a year ago?
thanks!!
