NFCU - How could you?

[Slim1Der]

Quick data points:

Joined NFCU in 2014

Have Cash Rewards VISA with $43k limit and GO Rewards with $13,500 limit

Had mortgage in Jan 2015 5/5 ARM 4.5% for $489,000  MT: $3000/mo

Sold the house last month, PIF

Relocated from San Diego to Charlotte NC

I've been a Sales Manger at a Honda dealer in San Diego for the last 3 years and been with the company since 2001

Income every year has been no less than $150,000/yr

Took me 13 days to find a job in Charlotte. Exact position, Sales Manager, exact same brand, Honda

Pay plan will be very similar to my previous job

Applied for the same type of loan 5/5 ARM but this time the house is new construction and sale price is $342k

Went through pre-approval process thinking "no sweat"

Just got off the phone with the loan officer and they tell me that they cannot count my "commission income" therefore they cannot help me this time. **bleep**?!?!

My middle score is 705 with $225k available and 10% UTI.

Total obligations going out $2056

Stated income was $10k/mo (I was being very conserative)

I've been getting "commission income" my entire career so why would they give me a loan before for $147k more than what I'm asking for now? To subsequently deny me now???

One last data point, this would be my 3rd mortgage, my first was in 2012. An FHA loan for $335k. This loan was paid off in 2014.

Someone please shed some light. And maybe also give me some other lenders I can consider. The reason NFCU was my first option was because of no PMI and 100% financing.

Slim

[kc0039]

How about 3% down with PMI? Depending where in Charlotte, you may be able to do 3% down. 5% down for the rest

[me12345]

Commission income needs a 2 year history in order to count it as "Qualifying  Income"...

Even though you have had commission income for "Years", you have not had it at this company for 2 years.

Thanks, 

[Anonymous]

Apologies if I missed something but you just sold your last house? Surely you can do 10-20% down right? You are already at 20% dti it seems. Better chance if you would just put more down or pay off your other debt obligations.

[me12345]

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@Anonymous wrote:
Apologies if I missed something but you just sold your last house? Surely you can do 10-20% down right? You are already at 20% dti it seems. Better chance if you would just put more down or pay off your other debt obligations.

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It's not about DTI, or down payment amount.... It's about usable income history, and being commission on a new job. There is no history of income at his new position.

Thanks, 

[kc0039]

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@me12345 wrote:

Commission income needs a 2 year history in order to count it as "Qualifying  Income"...

Even though you have had commission income for "Years", you have not had it at this company for 2 years.

Thanks, 

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Completely wrong if you were to look at it as if you have no overlays. He has a 2 year history of being in the same industry along with the same pay. If we were to look at his last paystubs from his previous company and compare it with the new company and it shows base + commission, then we can use the commission as income. If he were to go to Chevrolet, but being in the same position same pay, we can completely use his income.

[VALoanMaster]

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@Slim1Der wrote:

Quick data points:

Joined NFCU in 2014

Have Cash Rewards VISA with $43k limit and GO Rewards with $13,500 limit

Had mortgage in Jan 2015 5/5 ARM 4.5% for $489,000  MT: $3000/mo

Sold the house last month, PIF

Relocated from San Diego to Charlotte NC

I've been a Sales Manger at a Honda dealer in San Diego for the last 3 years and been with the company since 2001

Income every year has been no less than $150,000/yr

Took me 13 days to find a job in Charlotte. Exact position, Sales Manager, exact same brand, Honda

Pay plan will be very similar to my previous job

Applied for the same type of loan 5/5 ARM but this time the house is new construction and sale price is $342k

Went through pre-approval process thinking "no sweat"

Just got off the phone with the loan officer and they tell me that they cannot count my "commission income" therefore they cannot help me this time. **bleep**?!?!

My middle score is 705 with $225k available and 10% UTI.

Total obligations going out $2056

Stated income was $10k/mo (I was being very conserative)

I've been getting "commission income" my entire career so why would they give me a loan before for $147k more than what I'm asking for now? To subsequently deny me now???

One last data point, this would be my 3rd mortgage, my first was in 2012. An FHA loan for $335k. This loan was paid off in 2014.

Someone please shed some light. And maybe also give me some other lenders I can consider. The reason NFCU was my first option was because of no PMI and 100% financing.

Slim

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Hii Slim,

That's a ridiculous overlay. The underwriting guidelines for every other mortgage program out there only require that you have a 2 year history of earning commission not that you have a 2 year history of earning it with the same company!

I can do 3-5% down with or without PMI, I'll run the numbers for you & let you decide which option is the best fit for you.

FYI - NFCU is notorious for being a little on the conservative side & you are paying PMI with them it's just covered with a higher interest rate.