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
Do you need cash out of your home, but you don’t want to refinance the…
I wanted to address the two most common questions that I get regarding reverse mortgages……
Do you need cash out of your home, but you don’t want to refinance the…
Would you like to get cash out of your home, but you don't want to…
If you need cash out of your house, but don't want to touch your first…
I wanted to address the two most common questions that I get regarding reverse mortgages……
