Calculating 2nd Job income

[ashjt2011]

Hello all,

We are working on the conditional approval on our new build. Credit is fine, my rental investment property is okay, everything checked out. Got the approval through Desktop Underwriter for 5% conventional. The only thing my LO said may be tricky is how they determine the second income.

My coborrower has had a second job for 3 or so years. Last year they made approximately 22k from the second job, but only about 10k in 2016 (they’ve doubled their hourly pay in the last couple years).

Our DTI is 47%, with the income they entered for the second job (30 hrs a week x 15.50 an hour). My question is, how do they determine the what they will accept as a second income? I turned in all w2s for the last couple years and VOE is all done, now just waiting on underwriter.

Thanks!

[kc0039]

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wrote:
Hello all,

We are working on the conditional approval on our new build. Credit is fine, my rental investment property is okay, everything checked out. Got the approval through Desktop Underwriter for 5% conventional. The only thing my LO said may be tricky is how they determine the second income.

My coborrower has had a second job for 3 or so years. Last year they made approximately 22k from the second job, but only about 10k in 2016 (they’ve doubled their hourly pay in the last couple years).

Our DTI is 47%, with the income they entered for the second job (30 hrs a week x 15.50 an hour). My question is, how do they determine the what they will accept as a second income? I turned in all w2s for the last couple years and VOE is all done, now just waiting on underwriter.

Thanks!

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They will ask for a verification of income (VOE). As long as the VOE states that he does 30 hours a week and the hourly pay is $15.50 an hour, we'll be able to use that income. 

[ashjt2011]

Well, that’s what it says. I wonder why the LO was concerned how the underwriter would calculate this income...

[JVille]

Probably concerned the UW would want to Average the last two years vs giving to straight credit for it.

[ashjt2011]

I guess we will see hopefully Monday. Spouses second job turned in their VOE late Friday afternoon so I am sure underwriter will review come Monday. The underwriter has been extremely quick, which is nice.

I’m hoping they will go by what the VOE says and not the average of the the last two years, because that will definitely hurt the loan.