Home Buying in Cedar Park>Question Details

Jodi, Home Buyer in Santa Rosa, CA

Clarification- Home loan for self employed

Asked by Jodi, Santa Rosa, CA Mon Jun 10, 2013

My husband and I currently own our home California and are planning a move to the Austin area at the 1st of the year. My husband is a self employed truck driver and has been for 9 years. I want to know what information lenders will use, previous taxes? Net/Gross? What about if he secures a haul (still self employed) that is consistent? How about DTI? And down payments..what would be generally acceptable? We have good/great credit (750 and 730), have never been late on our mortgage or any other loans.

I work currently but when we move I will stay at home with our son. So this is going to be based solely on my husband's income.

Any information is appreciated.

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Answers

3
Hi Jodi,

You asked several different questions so I'll try to answer each one.

1) What information will lenders use -

A) Lenders will take the adjust gross income & average it over the last 2 years. In addition to that they may require a current Profit & Loss Statement if you haven't filed your returns for 2013 by the time you apply. As Don said, if your income is decreasing it can be a problem.

2) How about DTI?-

A) This will depend on which loan program you qualify for & or choose. Conventional loans have the least flexibility when it comes to DTI with a cap of 45% mainly due to the PMI guidelines. On an FHA loan you could get approved with a DTI of up to 55%. A no money down USDA mortgage will allow DTIs up to 50% +/- depending on compensating factors.

One thing you didn't cover that will also affect your DTI is what you plan on doing with your home in CA. Are you going to sell it or retain it an rent it out?

3) Down Payments-

A) This will also depend on the program. FHA requires 3.5% of the loan amount for a down payment while a conventional loan requires 3-5% & the USDA program doesn't require a down payment at all.

Please feel free to contact me for more information or help.

John Burke
Senior Mortgage Banker
Peoples Bank & Trust Co.
(877)228-9069
1 vote Thank Flag Link Tue Jun 11, 2013
Thank you- We will be selling our CA house. My husbands income has been consistent, or has gone up for the past 9 years so that's good. We are hoping to put 20% downs it sounds like that will be acceptable, and our DTI will be likely around 43%. So all in all we should be ok. Thank you again for your help.
Flag Tue Jun 11, 2013
Hello Jodi,

Lenders will look at your adjusted gross income after deductions. Besides looking at your adjusted gross income lenders will also average your husbands income over the past 2 years. If the income is increasing or steady that is good but if income is decreasing that can possibly pose a problem depending on the circumstances and how much of a decrease from one year to the other.

I am a Mortgage Broker and Realtor based in Cedar Park, Texas. If you like please feel free to contact me and we can discuss and review income before you move to make sure you won't have any issues once you have started the relocation process.

Hope this helps.

_____________________________________________________
Don Groff | REALTOR® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | listings@dongroff.com
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
Web Reference: http://www.AustinListed.com
0 votes Thank Flag Link Mon Jun 10, 2013
You need to be speaking with a lender NOW! Preferably a local lender, Try Mark Wilkerson with Bank of Texas Mortgage. Mark Wilkerson is a excellent all purpose lender. Loans for the self employed can be tricky, especially when relocating. Mark may be able to make some suggestions so that you do qualify when you get here.

http://mwilkerson-bankoftexaslo.mortgagewebcenter.com

Mark Wilkerson NMLS# 364258

11044 Research Blvd
Bld C Suite 100
Austin Texas 78759

Office: 512.527.6818
Cell: 512-294-4599
Fax: 713-354-0247

Your friend in the real estate business,

Nancy Filgate, REALTOR®
ABR, CRS, e-PRO, GRI
Smart Source Realty
1001 Cypress Creek Rd., Suite 106
Cedar Park, TX 78613
nancy@filgate.com

SellingAustinTX.com
Mobile: 512.351.1497 Home Office: 512.528.1651
0 votes Thank Flag Link Mon Jun 10, 2013
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