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
If you are thinking about buying a house, but you aren’t really sure if it’s…
Here is a breakdown of the maximum seller help amounts by loan program… Program: Conventional…
Your property tax bill usually comes out in late November, or early December. There are…
If you want to acquire rental properties, but you are having issues proving your income…
If you receive money from the State or a County sponsored organization for providing foster…
FHA gift questions come up often. I wanted to give you the rules on FHA…
