If all of the information above is true, then you should have no problem at all. You can even go stated income, since you own your own business and you have a credit score of over 680. Either way, you should be fine. Debt ratio is important as well and since you only have a small student loan, you are fine. If you have money, you should keep it in an account at the bank (some people don't) because the banks usually need seasoned money when putting money down for a house. Most of the time you need to have proof that 5% of the funds are from the borrower's own money. It does not cost anything to get pre-qualified. Only $18 to run credit. At our company we are approved with many lenders, we shop to find you the best program to fit your needs. We charge a minimal origination only if you go through with the loan. Please e-mail me if you have any other questions...

You need to call a bank or a mortgage broker. They will take an application from you and submit it to underwriting to see if you can be approved.

My answer is quick.
Contact a trusted broker in your area. Put a (no cost) application. Be honest with the broker. Let them shop the loan and give you options. You do have options. If may be a two-step mortgage. One with the 40k down and a new mortgage when you have the 120k
Good Luck
Tony Grego - Indiana Mortgage Broker

last Friday, the Securities Industry and Financial Markets Association sent out a press release indicating that the “new” loans would not be allowed to be included in existing “conforming” loan pools. They are apparently going to be securitized “under unique pool codes for trading on a “specified pool” basis or inclusion in Real Estate Mortgage Investment Conduit (REMIC) transactions.”

So what does that mean to you and me and our home loans?

An excellent source, Craig Strent of Apex Home Loans, says, “That seems to indicate they will not get the best conforming rates, but more likely some kind of middle ground rate between conforming loans at $417k and below and jumbo loans that are still above the temporary increase.”

So much for my new refi. Strent adds, “This certainly would detract from the benefits the temporary increase was supposed to have in the housing market.”

Of course to accurately answer your question...I would need the potential purchase price. If you are more than 25% owner of the business...you are considered self-employed and they will average your income for 2006 and 2007 tax years, plus YTD earnings for 2008. Your income from distributions and earnings can be considered if they are consistent for the past two years or more, as evidenced by your tax returns.

The bottom line is your situation doesn't sound difficult to me, and I recommend consulting with a good mortgage broker (of course, I happen to be one) and that will clear up any concerns.

The conforming loan limit has been increased to a maximum of $729,750.00 in high cost areas, but it is estimated it will take between 2 weeks to 2 months before they determine which areas will be considered high cost, etc. (California is almost certain to be one...although it may not reach the maximum). This is good news because conforming loans (sold to fannie mae and freddie mac) have lower interest rates, and require less down payment than the non-conmforming loans.

For more info., please contact me anytime at 818-481-8555

Mike Stone, Broker

any number of things and it will depend on you qualifying characteristics such as credit score and depth, income, reserves, lenght of job, etc. There are many types of lenders that offer many type of programs. The general rule of thumb is the more you offer (in terms of paperwork) to a bank the more options and better pricing (rate you get).

E. "Zeke" Barragan
818-728-3945 (Phone)
818-326-7330 (Cell)
310-451-6453 (Fax)
ebarragan@firstcapitalmtg.com http://www.lendingfortomorrow.com

IF you're putting 20% down on the property then the lender WILL NOT DOCUMENT your income. When you fill out a loan application the loan officer submits it to a 'Automated Underwriting (AU)' system that will determine if you're approved, and what documents will be needed for the loan.

Loan Prospectus (LP), and Desktop Underwriter (DU) love assets! If you have a 680+ score, and 20% down, and the loan amount is less than 417k, then the AU system will only ask to verify your EMPLOYMENT ONLY. They can do this a few ways: 2paystubs showing 30day earnings, Last yr W-2 to show employment history, and/or calling your place of employment to ask start date/position title.

All the answers below show true merit, but what stands out the most is that you have a decent amount to put down and you have a good credit score. Finding a good realtor who will help you choose the lender and walk you through all those steps is of utmost importance, as is working with a reputable lender. I work with several I would be more than happy to recommend, and ERA also has its own mortgage division which guarantees an answer the same day or will pay you $250. I have many incentives to offer to my clients so please feel free to contact me. Maureen.ross@era.com

When it comes to documenting the income, it does show up on my 1040 and the tax that I pay, so there are regular distribution checks and the 1040 to document that income. Does that change the financing outlook?

It is a great question ! Thanks for asking.
In today's market is it very tough to qualify with a small salary. They will suspect you DO make a ton of money in your corporation and you are not reporting it at a personal level. So, what I do is I tell the mortgage people upfront that the company makes the money. They can choose to see you as a package and with your good fico/no debt, you could look good to them. Specially if you are buying a property in the low range for what you could afford. They want to see you able to pay easily. Humm.... I've seen just about every scenario of loans and Real Estate transactions in the last two decades. You are welcome to call me since it is always a very personal scenario. Norma 323 550-1200

Hi Watching...

It sounds like you would be what we refer to as a "good" buyer. With your credit scores, debt ratio and the ability to bring in cash you should not have a difficult time finding a good loan.

My suggestion would be for you and your spouse to speak with a reputable lender (I know a few who are great) and also to sit down with a good Realtor (like me :-) to start getting a game plan in place.

Feel free to get in touch with me as I would love to be able to help you in your home search.

Take care,

Tisza Major-Posner, Realtor, Keller Williams (909) 837- 8922 or (213) 392-4084

As Gabe indicated, the difficulty in achieving a final loan approval is going to be determined by your "Purchase Price." If you're not sure how much "house" you can afford, input the numbers referenced above into this Affordability Calculator: (The calculator does not record or capture your information)
http://www.ricardobueno.com/afford.i

In issuing a Pre-Approval, an underwriter looks at the following:
- Credit - in this case you have stellar credit (no problem here)
- Income - the purchase price you have in mind will dictate whether you'll find financing or not.
- Assets/Collateral - a down payment signifies commitment to your mortgage
- Liabilities - here we'll derive a debt-to-income ratio; the lower the ratio, the better. In this case you've indicated that you have one minor student loan. Any other debts?

If I were you, I'd get my paperwork in order (it sounds like you've already done that) and get started on the pre-approval process. If you gather a Credit & Income Package before you start "shopping" for a mortgage, you'll ensure that the rates you're quoted will be accurate. What's more, you'll have a definitive answer on the price range you can afford without a commitment to the mortgage. In other words, YOU DON'T HAVE TO PAY ANYTHING in order to be issued a pre-approval and you'll have an answer to your question: "In today's market how tough is it to get pre-qualified when the paycheck shows a small salary..."

For more on Pre-Approvals Read: "The Mortgage Application Process: Getting a mortgage the right way!"
http://www.industry-report.com/ricardobueno/2007/11/the-mort…

If you have questions on Stated Income Financing you can read the following article:
http://www.industry-report.com/ricardobueno/2008/01/stated-i…

I'd like your feedback on whether the articles referenced here are resourceful to you. (In other words, how can I make the information more specific?)

All the Best!
Ricardo Bueno

Depending on what your purchase price is, you should have no problems getting pre-approved based on your FICO score and income. However, if you need to show more income to qualify you may need to do a stated income loan. Most business owners and people who are 1099 usually need to do a stated income loan. The reason is because your taxable income is usually much lower than your gross income. A stated income loan allows someone such as yourself to state your gross income on the loan application without having to verify the income with W2s or tax returns. Lenders will normally only verify that you are self-employed through a third party, like your CPA. You will pay a slightly higher interest rate with most lenders for a stated income loan because it is a higher risk than if you were verifying your income. For more info or if you would like to get pre-approved, you can visit my website at: http://www.BayAreaHomeFinancing.com.