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.
Senior Mortgage Banker
Peoples Bank & Trust Co.
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 | REALTORÂ® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | firstname.lastname@example.org
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
Mark Wilkerson NMLS# 364258
11044 Research Blvd
Bld C Suite 100
Austin Texas 78759
Your friend in the real estate business,
Nancy Filgate, REALTORÂ®
ABR, CRS, e-PRO, GRI
Smart Source Realty
1001 Cypress Creek Rd., Suite 106
Cedar Park, TX 78613
Mobile: 512.351.1497 Home Office: 512.528.1651