If you have a co-signer, will they pay the mortgage? common charges, real estate tax? If not, don't fool yourself. You have enough trouble on your income to qualify for a rental without having a foreclosure on your credit report.
Bsns2010 income is $2,083.33/mo, which $1,506.22 would be 72.299% of - way too high to qualify. In general your housing ratio should be no more than about 31%, but up to about 45% can qualify, so based on that example you are roughly 27% too high on the debt ratio for the housing payment.
With a self-employment co-signer, their income and their debts (including where they live) will also be included in the qualifying ratios - so while it's possible you could qualify with a co-signer, just the fact of having a co-signer is NO guarantee that it'll be the trick to being able to qualify.
As long as the co-signer has credit scores as good as yours, they should not negatively impact the interest rate you would qualify for since it's still being treated as a primary residence (your primary residence).
You have to speak to a mortgage banker and get your self pre-qualified. If you need to have a co-signer, your co-signer will have to be pre-qualified as well. That is the only way you will get a true answer to your question.
Having said that, let me give you a hypothetical example, lets say a consumer purchases a condo for $270,000 and puts down 20%. The mortgage amount would be $224,000. If said consumer is qualified and gets a 30 year fixed mortgage, the monthly payment would be about $905.00 (based on a 4% 30 year fixed mortgage). Add to that real estate taxes and insurance (estimated at $300.00 per month) to get the total living expense (known as PITI), in this case $1205.00 per month.
With that type of monthly carrying cost, the bank usually would want to see you reporting an income of at least $35,000.00 to the IRS. Keep in mind that these numbers can vary based on the buyers other qualifications so you must speak to a mortgage banker to find out definitively what you can or cannot do.
If you need help finding a great mortgage banker, please contact me and I can refer you to one. Good luck!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
I would suggest that you contact a local loan officer that can review your financial information to see what financing options are available to you. Every one's situation is different and the basic criteria does not paint enough of the picture for us to give you an accurate assessment.