I’ll quickly show you how the underwriter will calculate the income. It’s not based on debt to income ratio. It’s based on residual income.
Here’s the formula…
Borrower’s current income – $$$$.
– Housing Expenses (taxes, insurance, HOA, etc.)
– Sq. Footage of subject x .14 sq ft.
– Liabilities from Credit Report
= Residual Income
The underwriter will then check the residual income against a chart for your family size in your area. For instance, in Texas for a 2 person family if the residual income is $886 or more then you are fine.
You can easily make less than $30,000 a year and purchase a $250,000 or $300,000 house as long as you have the down payment.
…and, the best part – NO MONTHLY PAYMENTS, EVER!
If you want to look into a Reverse Purchase for you or someone you know, give me a call or shoot me an email!
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
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