September 8, 201115 yr Deductions and stuff like that from the business take away from taxable income, or so i'm told. I don't really understand taxes. The property is only listed at 50,000. It's 4 bedoom 3 bath. IMO, it should be listed much higher so that why i'm interested. Total assets I have roughly 35,000 saved up in different areas (Stocks, Mutual Funds, Savings, CD's) that could be very liquid if needed. But like I said it looks like I dont have a high income and someone I know in the mortgage business said that could raise some red flags. A mortgage company will take all of your income into account - not just what you show as "net" on your taxes.
September 8, 201115 yr A mortgage company will take all of your income into account - not just what you show as "net" on your taxes. Well the business is where the deductions are taking place. Then it is paid out to me. I'm not very good at explaining it. The mortgage payment is going to be less than $300 per month. I obviously make more than $300 per month so I dont see why I wouldn't be approved. But that's just me and my lack of understand how mortgages work.
September 8, 201115 yr Well the business is where the deductions are taking place. Then it is paid out to me. I'm not very good at explaining it. The mortgage payment is going to be less than $300 per month. I obviously make more than $300 per month so I dont see why I wouldn't be approved. But that's just me and my lack of understand how mortgages work. Q can give better answers but the keys are down payment/equity ratio ie how much the loan is vs the value of the property/debt ratio/credit history.
September 8, 201115 yr Author It is very difficult for SE borrowers because on paper they generally don't qualify due to the amount of deductions they take which in turn lowers their taxable income. Underwriters know the cashflow may be there but you gotta qualify just like Mr. W2 guy who gets taxed but can't write off the same deductions. ID be happy to look at your taxes and see what you qualify under .
September 8, 201115 yr Cleared Hopefully you didn't delete my PM before clearing you Inbox. Was hoping you'd give me some info.
September 8, 201115 yr You can do an FHA loan with 3% down althoughnyou will have a monthly PMI payment. Yeah, I understand I'm able to, I just want to avoid the PMI. I'd be able to put anywhere from 12-15% down at this point most likely...Want to get that up near 20%.
September 8, 201115 yr Author Yeah, I understand I'm able to, I just want to avoid the PMI. I'd be able to put anywhere from 12-15% down at this point most likely...Want to get that up near 20%. Good deal. Conventional rates should remain low throughout the rest of the year and into next year. You should be fine while you save.
September 8, 201115 yr We closed on our house last Oct and I thought I made out like a bandit locking in at 4.12%. I never thought I would see anything under 4%. With house prices what they are right now and rates this low it is definitely a buyers market.
September 8, 201115 yr LISTEN TO QRICHE11 HE KNOWS WHAT HE IS TALKING ABOUT GOOD MAN AND TRUSTWORTHY. JD
September 8, 201115 yr The ironic thing about this thread is every time I look at it, the ad banner at top is for a mortgage company. :sssh:
September 8, 201115 yr The ironic thing about this thread is every time I look at it, the ad banner at top is for a mortgage company. :sssh:I think it's designed that way. It searches for key words in the thread title or body and advertises accordingly.
September 11, 201115 yr Author LISTEN TO QRICHE11 HE KNOWS WHAT HE IS TALKING ABOUT GOOD MAN AND TRUSTWORTHY. JD Thanks JD I miss seeing you guys down there at the bank. Guru I also appreciate the kind words, call me and let's get you refinanced. Lol TAC the banners aren't my company that's for sure lol. I work for the Improper Fraction.
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