Overtime- Please help

[CreditInspired]

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wrote:
Single dad who would love to buy a home for my 3 children.

687 middle score.

Looking at Chfa, USDA, or FHA. I have about 20k to put down.

My debt-
6 credit cards all under 20% or paid off
1 car lease $469 a month

No collections.

Only issue is INCOME. My previous job my hourly rate was $19 an hour and overtime was all over the place at 20-50 hours a week. I’ve been at my current job for 7 months and I have consistent hours and overtime hours. Pay rate is $22.50 at 40 hours and overtime is 30 Hours a week. (Around $7400 gross monthly)

Tax Return info
2016: 58k
2017: 71k

This year I’m expected to make $88k

I live in Colorado and I wouldn’t be able to buy a house under $300k. So my question is what are my chances on getting approved for over $300k? Are they going to go by my current income/overtime or base what I qualify for off my 2016 & 2017 returns.

Will I have to wait another year? Been going crazy trying to find an answer and I’ve talked to a mortgage lender who was absolutely no help.

Thanks so much.

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IMHO, your $469 lease is killing you. Are you close to the end of the lease where you can turn it in and get something around $200/mo? A lot of prospective purchasers dont realize that a carnote is a DTI ratio killer.

GL2U

[kc0039]

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wrote:
I’m sorry you’re in the same situation. We went with a local mortgage broker, who is our home builder preferred lender. We gave them a shot first because they are giving $5k towards closing costs, etc.

Overtime is ridiculous. I don’t see why they are basing what I qualify for financially on my overtime finances in 2016/2017 when I’m making $15,000-$30,000 more this year, and nothing is projected to change.

I hope you have better luck.

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You'll need a lender that understand how OT can be used to your advantage if your employer plays ball with us. If you need any help, feel free to PM me.

[seap74]

I know this isn't about what you asked - but as a single dad are you sure you can maintain working 70 hours/wk? if so, wow, I couldn't do that. That would kill me, lol. Good luck with the process.

[Anonymous]

I’ve been doing it for 10 years lol just use to it I guess. Thank you!

[Anonymous]

No unfortunately not a year and a half ago I needed a truck to get to work (one hour commute) so I still have a year and a half on it to go.

[Anonymous]

That is an awful lot of money. Especially since you are already paying $470 on a depreciating asset.

I make about the same as you do, and can't imagine making mortgage payments like that.

[Anonymous]

I pay in rent what my mortgage would be and I’ve never been late and still manage to put $2500 into savings every month, so I think I’m good. The real estate market where I live just keeps going up, up, up. Pretty soon I won’t be able to buy a house at all.