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Ballet46
LIF Infant
Member since 6/14 180 total posts
Name:
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Net income
Does anyone know how much income you need to net in order to get a 350,000 mortgage? I know it varies based on individual debt. We do not have much debt. If you could at least share how much income you claimed on your taxes in order to get a mortgage. Thanks!
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Posted 4/1/15 2:36 PM  |
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Prudential Douglas Elliman Real Estate
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Shroggie
Don't Worry...Be Happy
Member since 5/06 6261 total posts
Name:
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Re: Net income
I'm not sure about net, but when we bought our home in 2011, I believe our gross was about $105k and we got a mortgage for $369k. We had very little debt as well and excellent credit.
Eta: That's with taxes around $9k. Obviously, the higher the taxes, the less you may be approved for in a mortgage.
Message edited 4/1/2015 3:10:39 PM.
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| Posted 4/1/15 3:08 PM |
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jmp1105
LIF Adolescent
Member since 12/11 553 total posts
Name:
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Re: Net income
I believe they look at gross income v. debt. not net income.
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| Posted 4/1/15 3:16 PM |
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jessnbrian
Only God knows His plan for us
Member since 4/13 7238 total posts
Name:
Jessica
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Re: Net income
Posted by jmp1105
I believe they look at gross income v. debt. not net income.
this.
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| Posted 4/1/15 3:50 PM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Net income
They definitely look at gross not net. They also calculate your DTI (debt to income) ratio. I believe common is 43% DTI for total debts including mortgage. This amount is calculated according to your gross income. Someone correct me if I'm wrong
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| Posted 4/1/15 4:19 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19458 total posts
Name:
L
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Re: Net income
They look into gross income, debt, savings, payment history for revolving credit, and you must have at least two different revolving credit accounts like a credit card, car payment, or student loan payment. They want to see that you pay these types of debts on time.
As for income, it really depends. You might be able to qualify on a lower salary if you have more savings, but if you have less savings then you would need a higher salary.
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| Posted 4/1/15 4:48 PM |
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Paramount
Sweet!
Member since 7/12 4287 total posts
Name:
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Net income
Debt to income ratio.
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| Posted 4/1/15 6:47 PM |
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PhyllisNJoe
My Box Is Broken
Member since 6/11 9145 total posts
Name:
Phyllis
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Re: Net income
Just wondering, if you don't have a gross income because you are 1099 wih substantial write offs, then how do they see your income? Weird question, I know. If just say as 1099, your net income is $140k , so they go based off what that "would be" gross or just go by net at that point.
Anyone? Lol. Really just curious
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| Posted 4/1/15 7:17 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19458 total posts
Name:
L
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Re: Net income
They want to be assured that you have a steady job and income. As a 1099 employee you would likely have a much much harder time than someone with a w2, even if you have a high "salary." It might be beneficial to work with a mortgage broker or to create your own company so that you can be self employed and attribute the income to your own company, but they would want to see steady "profits" over a period of years.
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| Posted 4/1/15 7:30 PM |
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MrsS1231
LIF Toddler
Member since 1/15 495 total posts
Name:
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Net income
Go to your bank and get a pre-approval.
It's not just income - they look at assets, bank accounts, cars, any other property, stocks, life insurance policies, past income, employment history, credit history, credit score, loans, etc
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| Posted 4/2/15 11:33 AM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Net income
If you are a W2 employee with good credit, steady time at job, money in the bank both for your purchase and after (reserves) you are pretty much an ideal candidate for a mortgage.
1099 employees are a different ball game. They often have to jump through more hoops to get approval however it happens all the time. However personally if I were a 1099 employee I would make sure to talk to a mortgage lender first like Continental Home Loans. I believe they approve mortgages for 1099 employees with less drama then a local bank will.
Good luck!
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| Posted 4/2/15 11:56 AM |
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alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
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Re: Net income
Posted by PhyllisNJoe
Just wondering, if you don't have a gross income because you are 1099 wih substantial write offs, then how do they see your income? Weird question, I know. If just say as 1099, your net income is $140k , so they go based off what that "would be" gross or just go by net at that point.
Anyone? Lol. Really just curious
When we bought our house I was a 1099 employee and they would not approve a loan with me on it. Even though I was making almost double what DH was making they considered me as not a good risk.
This was back in 2009 when the mortgage industry was a mess so things might be different.
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| Posted 4/2/15 1:08 PM |
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PhyllisNJoe
My Box Is Broken
Member since 6/11 9145 total posts
Name:
Phyllis
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Re: Net income
Posted by alli3131
Posted by PhyllisNJoe
Just wondering, if you don't have a gross income because you are 1099 wih substantial write offs, then how do they see your income? Weird question, I know. If just say as 1099, your net income is $140k , so they go based off what that "would be" gross or just go by net at that point.
Anyone? Lol. Really just curious
When we bought our house I was a 1099 employee and they would not approve a loan with me on it. Even though I was making almost double what DH was making they considered me as not a good risk.
This was back in 2009 when the mortgage industry was a mess so things might be different.
When we bought this house, it went strictly off of DHs income. He has an LLC. I'm 1099 and this was the issue for me as well back then. Though now, I have been 1099 working with the same clients since 2009 and thankfully, showing growth year after year. Wondering if we did decide to move, if we'd be able to use my income as well.
Like I said, was just curious.
Thanks for the replies
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| Posted 4/2/15 9:06 PM |
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schmora15
LIF Adult
Member since 9/08 2476 total posts
Name:
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Re: Net income
Posted by PhyllisNJoe
Just wondering, if you don't have a gross income because you are 1099 wih substantial write offs, then how do they see your income? Weird question, I know. If just say as 1099, your net income is $140k , so they go based off what that "would be" gross or just go by net at that point.
Anyone? Lol. Really just curious
It's great to have write offs but you have to show income in order to get approved. If your planning on buying a house you have to show income for a couple of years and use less write offs.
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| Posted 4/5/15 2:14 PM |
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