- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Mortgage question
Posted on 5/12/15 at 8:17 am
Posted on 5/12/15 at 8:17 am
Moving this question here: Trying to pre-qualify, and my wife is a speech therapist. She is paid hourly, and is only paid if she has patients, which she always does, however she isn't guaranteed a salary. Was informed today that I can not include her income on the loan, so my question is what if a couple both work in sales, or commission based income, how do you get a home loan? BTW, I am on salary, just that having her income on the loan would extremely help this situation.
This post was edited on 5/12/15 at 8:20 am
8
Posted on 5/12/15 at 8:57 am to 610man
I've never heard of this. They should be basing the approval off of tax returns, pay checks, and bank accounts. I don't see why they wouldn't include it if she was bringing in income. Maybe ask a different broker?
Posted on 5/12/15 at 9:02 am to 610man
My income is commission based. When I purchased a house in May 2013 I was able to count my income because I had been on my current job more than 2 years (it had been 26 months). They took all income over those 26 months and took an average income monthly to determine PTI and DTI.
They tried to take my previous 3 months of the year only as an average but finally wised up that it was not a good average.
How long has she been doing speech therapy, specifically at her current job/pay scale?
They tried to take my previous 3 months of the year only as an average but finally wised up that it was not a good average.
How long has she been doing speech therapy, specifically at her current job/pay scale?
Posted on 5/12/15 at 9:04 am to mglsu21
She has only been at this job for a little over 2 months, so only about 4-5 paychecks. I'm assuming thats not long enough to do what you mentioned.
Posted on 5/12/15 at 9:11 am to 610man
quote:
She has only been at this job for a little over 2 months, so only about 4-5 paychecks. I'm assuming thats not long enough to do what you mentioned.
That will probably present a problem for you. However I would check with other mortgage companies to see what they could do. Maybe they could use some income if she has been in the same field for a while?
There are a few mortgage brokers who post on here. They will give you some good advice (hawkeye and tigerdog or something like that?).
Posted on 5/12/15 at 9:17 am to 610man
Going to need 2 years before you can count her. Just the way it is.
Posted on 5/12/15 at 9:24 am to anc
Thanks, seems unfair that her income can't count for us, but the debts count against the loan.
Posted on 5/12/15 at 9:50 am to 610man
quote:
Thanks, seems unfair that her income can't count for us, but the debts count against the loan.
While is sucks in your current situation, Recognize from the banks perspective how risky a non salaried income could be after only having the job for 2 months. How many women try something for a few months and get burnt out? I know my mom has done that at least 10 times.
Keep at it and if your income can't get you the type of house you want, wait another year and see if they will take it a little early.
Or just shop around other banks or mortgage options.
Posted on 5/12/15 at 9:53 am to SouthOfSouth
Most of the times banks approve you for a good bit more than what you can actually afford. If you have good credit, you should still probably be able to get a good house based on your salary.
Posted on 5/12/15 at 10:03 am to 610man
You said she's not paid a salary, but is she paid as a commissioned employee, or as a contractor?
Every loan program is different. A lot of the government-backed programs want to see 2 years of earnings history. Go talk to a smaller bank or a mortgage company. Where are you looking to buy a house?
Every loan program is different. A lot of the government-backed programs want to see 2 years of earnings history. Go talk to a smaller bank or a mortgage company. Where are you looking to buy a house?
Posted on 5/12/15 at 10:08 am to LSUFanHouston
The issue is with her debt it pushed up the debt to income ratio, I really have no clue how she is paid, as a contractor or commissioned employee, I just know if for some reason she had no patients, she wouldn't get paid. I see the banks point, but speech therapy isn't something you try and get out of, takes a whole bunch of schooling. We are looking in the Hammond Ponchatoula area.
Posted on 5/12/15 at 11:16 am to 610man
Get pre approved not pre qualified
Posted on 5/12/15 at 11:30 am to 610man
quote:
Thanks, seems unfair that her income can't count for us, but the debts count against the loan.
if something happens to said income, you might appreciate that. especially with it being a brand new job.
putting aside your desire to own the house of your dreams, making a purchase like that 4 paychecks into a new gig can be risky if you are pushing towards your outer limits. thats all the bank is recognizing in wanting the track record. saying "she always has patients" is shooting optimistically at this point.
This post was edited on 5/12/15 at 11:32 am
Posted on 5/12/15 at 11:41 am to NoSaint
Solid point, I don't disagree
Posted on 5/12/15 at 11:53 am to anc
quote:
Going to need 2 years before you can count her. Just the way it is.
if you work in the similar type job they will often times count that though, especially if the job is about the same income.
Also, they will totally include commissions in your pre-qual. My income is almost 50% commission and it varies a fair bit throughout the year. I just had to provide three years of tax returns. and the last six months of pay stubs.
Posted on 5/12/15 at 12:30 pm to 610man
I just filled out an application with my credit union this morning. They did not ask for your wife's past W-2?
They did ask for both of our W-2 forms for the past two years.
quote:
Going to need 2 years before you can count her. Just the way it is.
They did ask for both of our W-2 forms for the past two years.
This post was edited on 5/12/15 at 12:31 pm
Posted on 5/12/15 at 12:33 pm to 610man
quote:
Thanks, seems unfair that her income can't count for us, but the debts count against the loan.
Seems unfair that you want a bank to consider someone whose only got 4-5 paychecks on a loan that will last THEM 15 or 30 years...
Posted on 5/12/15 at 3:40 pm to anc
quote:
anc
quote:
Going to need 2 years before you can count her. Just the way it is.
Completely inaccurate.
Posted on 5/12/15 at 3:44 pm to 610man
In this situation they will take a 2 year average of income plus year to date. If she writes off business expenses expect to lose that portion of her income.
Posted on 5/12/15 at 3:44 pm to 610man
quote:
610man
quote:
The issue is with her debt it pushed up the debt to income ratio, I really have no clue how she is paid, as a contractor or commissioned employee, I just know if for some reason she had no patients, she wouldn't get paid. I see the banks point, but speech therapy isn't something you try and get out of, takes a whole bunch of schooling. We are looking in the Hammond Ponchatoula area.
Two questions for you:
1.) Are you trying to get pre-approved through a bank? A mortgage broker? A credit union? Please be specific on your answer here. Not in terms of the name of the bank, but the type of banking/lending institution.
2.) You need to get yourself educated on your finances. Pronto. Not knowing how your wife is paid is something that would frighten me if I were an institutional lender like a bank or credit union. If you have so little grasp of your finances and income as to understand how your wife is paid, I'd probably be worried as well.
More than likely it's just that they have overly draconian rules and regs re: the loans they want and the credit profiles from a risk perspective. That's trickling down into their underwriting guidelines re: income documentation (I feel like I've written this here before recently).
Once you have a firm grasp on whether your wife is a W-2 salaried employee or a contracted employee, come back and share that with us. From there, I'm happy to give you some advice on where to go next.
Page 1 of 3
Popular
Back to top
Follow TigerDroppings for LSU Football News