Home Buying in California>Question Details

Dk0000, Home Buyer in San Jose, CA

Could I get approval for 270K? I make around 55K, the only debts i have are $1500 of 2nd home. (property tax, hoa), no rental property. debt R: 33%

Asked by Dk0000, San Jose, CA Sat Apr 2, 2011

My debt ratio is about 33%. I'm making a down payment of 600K and trying to get approval for 270K for the townhome. I make around 55K, exculding overtime. (2010 gloss income, $70K) the only debts i have are $1500 of 2nd home. (property tax, hoa), no rental property. Is it possible?

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Dk0000 - impossible to say from the details presented.

Has a lender told you that you don't qualify and you are looking for a 2nd opinion?

My suggestion is to speak with a lender and let them look at your 2009 and 2010 W2 forms, tax returns, bank statements, and credit report. With that information to analyze we can give you a much more valid answer. Anything you get from here is just going to be guesses and possibly false hope.

One quick example - overtime is perfectly allowable income for qualifying purposes if it has been earned for the last two year, and is expected to continue. If you've only been receiving it for 9 months Underwriting probably won't count.

Yes, the circumstances on the other home will play into this as well. Is there equity in that property? Lenders are particularly wary of "buy and bail" scenarios whereby borrowers are qualifying for the new home and then "bailing" on the other home that has lost equity in this market.

If you'd like help give us a call. Either way, I'd make contact with a lender Monday and let them look at your financial records and credit report. It only costs about $20 for the credit report and there's no obligation - and that way you'll get a valid answer.
0 votes Thank Flag Link Sat Apr 2, 2011
Maybe, I need more information to help you. I'm leaning toward yes, however I need more info.

Are you saying an $870k purchase price, $600k down payment and a $270k loan?
What's the value of the 2nd home and the balance of the 2nd home mortgage?
How far is the 2nd home from new condo?
What's HOA on new townhome?
What was 2009 Gross income?
0 votes Thank Flag Link Sat Apr 2, 2011
Many other factors are determined when applying for a mortgage. Contact a loan officer complete the application determine what you can qualify for which governs how an agent can assist you

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Sat Apr 2, 2011
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