Home Buying in Washington>Question Details

Fungirl, Home Buyer in Washington, DC

Income Guidelines

Asked by Fungirl, Washington, DC Sun Jan 8, 2012

I don't quite understand something. I see a lot of places where they have income guidelines to purchase. Say you're at the income guideline to purchase the property and at the time of signing your documents 90 days later you're still at the income guidelines to purchase. Then thirty 30 days after moveing into the income guideline property you get a big raise which takes you well over the income guidelines which at the time of purchase, if you had this income you are not qualified because you are well over the income guidelines. What difference does it make? Is this just the income guideline just to get into the property then afterwards it dosen't matter if you're $15,000 over the income guidelines.

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5
Kelly Putz’s answer
Hi Fungirl,

You're exactly right. The guidelines are to qualify you to get into the property, because of the low prices on places like The Buxton. It is so that people who don't make a lot of money are still able to become home owners. If anyone was able to purchase them, then they would be snatched up by people who could easily afford a much higher priced home. It's a way to rebuild communities that have high rental percentages as, stereotypically, renters do not take care of the property they live in as owners do because they don't have anything invested in the neighborhood.
1 vote Thank Flag Link Sun Jan 8, 2012
Hi Fungirl:

I am not sure if you are speaking about Lease Option properties? If you could give a reference property it might help to clarify. However in dealing with the scenario you used no one can control future events. The same can be said of government programs or state bond programs that give certain income guidelines as qualifiers. There are not any restrictions/contingencies that after you have purchased the property and you accept a new position or another job you have to "give the house back" because you now exceed the guidelines that were used to purchase the property.

The likelihood of individuals exceeding the guidelines within a month to three months after purchase is highly unlikely unless a person may not be completely honest at the initial time of contract signing. Which now that might be termed as fraud and that is a bigger issue.

To be certain that there are no problems the first step in purchasing is getting with an awesome loan officer who knows the programs available and can help you get qualified. They take all of the necessary docs upfront (W-2/Verification of Employment/Tax Returns/Pay Stubs/Verification of Rental History) and you are really qualified to purchase a home. Then income qualifiers are not a problem because we are only looking at homes that a person can afford and it takes the stress out of the home buying process.

Best Wishes on your home purchase!

Natalie Dean
nataliedean@mris.com
1 vote Thank Flag Link Sun Jan 8, 2012
Hi Fungirl,

If you qualify under the guidelines, and purchase, the home is yours!!! If you get a raise or a new job, then because you legally own, you will be fine. One common restriction with these types of properties, however deals with the length of time that you have to reside in the property, and/or how long you have to own the property. They place these restrictions to prevent people from buying at a discounted price, then selling it for market value soon after. If circumstances change and you want to rent the property out, you may be able to do that but you may have to own the property for a minimum of 5 years.

Hope this is helpful!

Hillary Nash McAuley
Nash Holdings Co.
Exit Elite Realty
202.907.7301
hillarynash@mris.com
http://www.exitelitemd.com
0 votes Thank Flag Link Sun Jan 8, 2012
If you won the lottery you would not have to move, if you married a wealthy person after you closed as far as I know you would not have to move. It would not be ethical to ask an employer to delay a raise so that you could qualify. Each program has different rules so make sure that you and your Realtor review and understand them, consult an attorney if still not clear.
0 votes Thank Flag Link Sun Jan 8, 2012
If you won the lottery you would not have to move, if you married a wealthy person after you closed as far as I know you would not have to move. It would not be ethical to ask an employer to delay a raise so that you could qualify. Each program has different rules so make sure that you and your Realtor review and understand them, consult an attorney if still not clear.
0 votes Thank Flag Link Sun Jan 8, 2012
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