qualifying for construction loan | TigerDroppings.com

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aaronb023
LSU Fan
Boxtard Baseball Club
Member since Feb 2005
10441 posts

qualifying for construction loan


Scenario:

Husband and wife
Own land with about 33% equity
DTI around 5%
mortgage to income would be less than 25%
one has credit score of 820, the other 720+
enough cash for 20%+ down payment


here is the kicker:
one of them has had 4 employers in the past two years with about 6 months of unemployment in that time span.


do they qualify?







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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
55951 posts

re: qualifying for construction loan


Probably.





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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
10806 posts

re: qualifying for construction loan


Depending on who is the breadwinner and how the income is distributed between the two the income from the person with multiple employers and the income gap might not be needed to qualify.





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Brightside Bengal
New Orleans Saints Fan
Uptown
Member since Sep 2007
2495 posts
 Online 

re: qualifying for construction loan


loan underwriter here.

how long has the husband or wife been in the latest of those 4 jobs and how does it count towards DTI?

without any further details, I would be inclined to not count any income from that spouse in borrowers' cash flow.






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aaronb023
LSU Fan
Boxtard Baseball Club
Member since Feb 2005
10441 posts

re: qualifying for construction loan


Might need both for the mortgage to income. Income is even. I think the mortgage might be less or right at 28% of the steady worker's gross income, but its close





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aaronb023
LSU Fan
Boxtard Baseball Club
Member since Feb 2005
10441 posts

re: qualifying for construction loan


2 months in the latest job. With the steady income, debt payment to gross is 7%. With both incomes, DTI is currently at 4%



This post was edited on 8/9 at 3:27 pm


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aaronb023
LSU Fan
Boxtard Baseball Club
Member since Feb 2005
10441 posts

re: qualifying for construction loan


I think the one income might be enough to qualify. how long of a steady work history would you need to consider the second income?





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