They take an average of 2 years.
If the 2nd year is lower in income, then they will take the lower number (conservative approach).
However, certain items of your tax return can be added in.
So, it is best to set up a meeting with a mortgage pro in your area - and have a chat.
If you have a 2 br - then one bedroom should have a tub - f.e. for the kids.
If the bathroom is nice - and there is tub in a 2nd bedroom - a double shower is fine.
This also depends on what statement you are trying to make.
If you want to project luxury - then a tub and a shower will do better (giving the owners options of bathing or showering). If this is a rental - as long as the shower is nice (and double shower is) - you'll be fine.
Hope this helps,
Beachfront Realty, Inc.
Here are two of my more recent cases with co-signers on an FHA loan:
Parents co-sign a mortgage for their daughter who was just recently divorced and has just went back to work. She can afford the mortgage but because of her recent re-entry to her profession after a long absence most lenders would be hesitant to give her a mortgage. Underwriters did not use any of her income and relied on her parents income.
Partners co-signed for another partner to purchase his first home with 3.5% down. The buyer for years was already paying $ 2300 in rent. The new mortgage payment was going to $ 3000 per month so there was not going to be any payment shock. The buying partner did not show enough income on his tax returns to qualify. The co-signer helped push the debt to income ratios back below 45% and we closed. I needed to document for the underwriters to show that the buyers were not just business partners but best friends. In fact the co-signer was the best man in the buyers wedding . It helped that the buyer had excellent credit and a good savings patern. It made sense to my underwriters and we closed.
Aside from following the straight boxed guidelines, the transaction needs to make sense to the underwriter.
NMLS # 6395
Financing Kentucky One Home at a Time
The old method was called 28/36.
While this is not used anymore, it is still a good method for planning a home purchase within comfortable and prudent budget planning.
The 28 = 28% of your gross monthly income.
This is the amount a bank used to consider the max payment that could be comfortably handled by a buyer that was only for the mortgage.
If that amount was $1000, then at 6%, the buyer could comfortably handle mortgage of around $165,000.
The 36 = 36% of your gross monthly income.
This is the amount a bank used to consider the max that could be comfortably handled by a buyer that was only for the mortgage PLUS all the other debts like cars, credit cards, other loans, etc.
If 28% = $1000, then gross income is around $3575.
So 36% of 3575 = $1290+-.
If you keep the 28/36 ratios in mind for your purchase planning, it will help you get a loan.
Of course, ask a loan officer, preferrably one who works for a local lender because they may have more options for creative loans like a co-signer/co-borrower.
(Please note: when you choose an answer as a Best Answer, or at least give a thumbs up, it helps those who answer questions here.)
Unless the co-signor will be contributing to paying the mortgage with you, your best bet is to wait it out. Why rush into something you can't afford?
Carey T. Hansen
"Your Real Estate Agent today, tomorrow and into the Next Generation"
1243 Commonwealth Ave.
Allston Ma 02134
Fax : 888-875-6973
Licensed Real Estate Professional