Blended loan because of income

The_NV_Guy · Joined: 09 Feb 2010 Posts: 6 Location: Mid-Atlantic

I'm looking at putting $200K - $215K down on a $500K new home but the lender says that would put my payments (with taxed escrow/HOA/Ins) at 58% of my gross (he also used my base salary not the gross from my W2 which is about 13% higher because of overtime and bonuses). I'll also be getting a 50% break on the taxes because my elderly mother will be a co-owner. So now I'm thinking about a conforming loan for the max my salary will support and a second loan to cover the remaining balance.

TNG

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

you should run your scenario past someone. what state are you located in? FREE RATE QUOTE

The_NV_Guy · Joined: 09 Feb 2010 Posts: 6 Location: Mid-Atlantic

I'm in Virginia and looking to buy a house in 20152 or 20105 (zips) most of the on-line calculator say I can borrow around $225K with a conforming loan and I'll need about $75K to close on the house I'm leaning towards a interest only loan for the $75K to keep the payments low. I'd also like to find a way out of the Taxes and Ins being in escrow (because of the tax break).

TNG

tfaulhaber · Joined: 11 Dec 2009 Posts: 11 Location: NYC

Is he calculating your overtime and bonus average over the past 2 years? You don't have to pay your taxes and insurance with your mortgage but, they will be counted towards your DTI. Email me @ tfaulhaber@mlcfunding.com. From the information your provided, I don't see you having an issue getting approved.

m2c · Joined: 03 Aug 2005 Posts: 937

Probably the best idea is to stay away from the secondary market, i.e., deal with a local bank that portfolios mortgages. Easier for them to bring the "common sense" factor into play.

In secondary market term, you’ll get a better understanding of this situation by looking at Fannie B3-6-02 Selling Guide. You can access through efanniemae.com or adfinet.com. Effectively you’re looking at a MAXIMUM total debt-to-income ratio of 50%. Make a lot of difference if your mother will live in the property as to inclusion of her income (and debts). Since it appears your mother is going for a homestead exemption, I suspect she is also going to occupy with you so there’s hope. Don’t see the reduced homestead real estate tax being included – bird in the hand issue. Could always argue inclusion of bonus income but I suspect they’d be against projecting overtime in this Obameconomy.