Calculating Income for a Mortgage

[fxtrader]

I need a bit of help from any of the mortgage pros in determining my income and DTI. I work two jobs long-term and have experienced some lenders not even include my second job. Here are the facts:

Job 1: Since 2017. $106,000 annual + bonus. I was recently given a raise two months prior from $90k. The bonus avg to $6,150/year for the last two years. Pay is bi-weekly.

Job 2: Since 6/21 (I've worked a 2nd job since 2016): $31/hr. Hours worked change per week but are fairly constant. 32 hours, 32, 25, and 18 hours  are a typical month week-by-week. I earned around $28k gross at this job last year from 6/21 - 12/21. 2022 YTD is 28,872.53. I'll likely finish with $40k-45k at this job by year end.

Both jobs are in a similar industry. I had a third job which was $51/hr but I didn't like it. 

Monthly debt for DTI purposes is $1,300. I'm having trouble qualifying for $500-$600k with $40k down. 

[i4owner]

I would think lenders would want to see 2 years on Job #2 in order to use income from Job #2

[ShanetheMortgageMan]

Job 1 would be $8,833.33/mo base income + $512.50/mo bonus income as long as your bonus income isn't declining.

Job 2, assuming the YTD earnings were through 9/18/2022, the amount of qualifying income will likely be $3,357.27/mo because even though you made $4k/mo in 2021 your YTD earnings only track to the $3,357.27/mo figure which is declining so that is the amount used.

To use Job 2's income to qualify the previous 2nd job employer(s) from 9/2022 to 6/2021 will need to be documented - W-2 + Verification of Employment form the lender will get HR to complete.

It seems the debt to income ratio would be low enough to qualify for a $600k sales price with 5% down, but without the Job 2 income looks like the DTI would be borderline.   $500k seems possible without the use of Job 2's income.

[fxtrader]

Thanks for the detailed reply. 

You did more work than some of the lenders I spoke with. A couple of them wouldn't even consider if the second job income wasn't exactly two years..I explained my employment history and mentioned the gap due to COVID. Still a no. Only one actually took the time to review and included this income. I had some other credit items that were pending at the time..resolved now so I'll be applying again soon.