Alsid Islami, Home Buyer in East Stroudsburg, PA

I want to purchase a home I have a good credit score, I got pre-approved for a 150k loan, the only thing is that last year I took off for maternity

Asked by Alsid Islami, East Stroudsburg, PA Sat Oct 15, 2011

leave and I didn't make much money, and this year I am a homemaker I am going to do my taxes
this coming year. I pay ALL my bills on time NEVER had a late payment... I currently only have a car loan I don't owe almost anything... I was thinking of buying a home within the next 4-6 months. I have a good amount of saved money from my past years of work, and this year PLUS my father in law offer to give us 10K for the house... My question is since I didn't make much last year is there a chance I will STILL get approved for the loan???? If I don't have 2 yrs of W2, can they ask me for anything else instead??? I have everything else, credit, bank statements, bills paid. I get paid cash now but I have all the receipts....Or should I get a co-borrower to help me in the purchase of the home? Or should I just wait another year in order to have 2 yrs of taxes so I can buy???

Thank you in advance for the advice...

Help the community by answering this question:


You mentioned that you are a homemaker now so Banks will look at you current earnings not last year preaproval. In this case Co-borrower will help because I am assuming that your husband is still working or are you having other income.
0 votes Thank Flag Link Mon Oct 17, 2011
Hello Jen my name is Matthew J Rubin. I am a Realtor in the poconos here is my cell number 570-994-7208 feel free to call me and I will get you to the right lender I work with 4 great leanders . A leander should be able to give you all the information that can help you. As far as your farther in laws money becareful because( and this is why a lender is better to help you . I do not know all the facts but gift money can be a problem if not handle in the right manner. Also here is my email feel free to ask me any questions that you may have. I am looking forward to helping you. THANK YOU FOR YOUR BUSINESS
0 votes Thank Flag Link Sun Oct 16, 2011
Jen i am looking forward to helping you with your home purchase, please contact me ASAP to set up an appointment to see some homes.
(570) 972-3219
0 votes Thank Flag Link Sun Oct 16, 2011
Hello Jen,
Recently I have worked with three different clients with different types of scenarios of income. One was similar to your own. My client was refused a loan by three lenders, rather than give up we switched lenders and worked with a great Broker that got him a great 30 year fixed rate at 5 1/8 percent. We closed on his home in one month! This is unheard of in these times.
The answer to your question is "it depends on the lender and how hard they work for you". I know people who have been refused by one lender only to close with another. It sounds like you can afford the home you are looking to purchase. If you are interested in working with a great team of Lenders and Realtors that have years of experience working hard for their clients, contact me at
Hope this answer was helpful!
Agnes Diehl
Realtor for E-Realty Services, East Stroudsburg, PA
0 votes Thank Flag Link Sun Oct 16, 2011
Dan, thank you for asking those questions, and Jen, for providing the follow up information.

Jen, how thorough was this pre-approval and when did it take place? Recently? Did they review all of your documentation as part of the pre-approval process?

Mortgages generally require a 2-year employment history, certain exceptions can be made such as in the situation where someone graduates from school and gets a job related to their field of study or someone who has had an absence from the workforce (such as due to raising a child) but can document a 2-year employment history prior to it, as well as other unique circumstances. So it doesn't always come down to what someone made the prior year, or even having a 2-year employment history.

When trying to use income to qualify, the source of the income needs to be evaluated. 9 times out of 10 income comes from employment (vs. retirement, investment income, etc.) and Jen like in your situation your 3 sources are also employment. Babysitting is typically considered self-employment (unless you work for a company that pays you a paycheck with income tax, etc. taken out), and self-employment needs 2 years of tax returns being self-employed as the same "company". Same would go for cleaning apartments, unless you work for a company as an employee, it'd be considered self-employment. Often a 2-year average of self-employment earnings (gross income from the business, minus expenses) on an individual business basis is what the qualifying income figure will be.

Hostess job in a restaurant usually is a W-2'd employee position with a regular paycheck, etc., so if it is for you then it'd be treated as employment, not self-employment. Usually after an employment gap such as you had, being back on a full time job for 6 months often can qualify. Assuming you are a full time regular paycheck getting hostess, a lender still may find it uneasy to use it as qualifying income unless you specifically were a hostess prior to the gap in employment - as it's not considered the same degree of security of employment as a full time salaried or professional position. If you are a part-time hostess, then part-time employment needs 2 years at the same employer.

Assuming the babysitting & apartment cleaning businesses would be viewed as self-employment, then once you have 2-years of tax returns claiming that type of income you could use it to qualify. If it's actually getting regular paychecks with taxes being taken out, and your hostess job is full time, then at least 2 of the 3 jobs you have would need to have gone on for 2 years in order to qualify - as second jobs (just like part-time employment) also need 2 years of that same second job to qualify.

From what I described above, if your employment doesn't appear to be able to be used, then you may want to look into a co-signer... as at $4k/mo it certainly sounds like you have the income to afford a housing payment on a $150k home.

If you accept the gift for use, then if your total down payment is less than 20% then you would likely have to utilize FHA financing because with conventional financing & less than 20% down, private mortgage insurance is required and when having a non-occupant co-borrower then the PMI companies all require the occupant borrower to qualify on their own income-wise.
0 votes Thank Flag Link Sun Oct 16, 2011
If the babysitting and Apt. cleaning are regular jobs with pay stubs and you pay taxes on them, the income will be usable. If this is pocket money and your hostess job is your primary source of income, your purchase power will be limited to this.
Meet with a local lender who can review your income and advise you. A co-signer won't help if the issue is income, unless they buy it with you and will be living there too.
0 votes Thank Flag Link Sat Oct 15, 2011
thank you for answering... I make about 4thousand a month between babysitting, cleaning apt, and hostess job at a restaurant... My monthly bill payments including car payment and insurance is $800...
Can I get someone else as a borrower to help me with the loan? Or should I just wait the 2 years to prove my income in a W2 form???
0 votes Thank Flag Link Sat Oct 15, 2011
Your buying power will be related to your income. With good credit the next step is debt ratio. You'll need a steady source of income to be approved as a borrower. As a homemaker, what is your source of income?
0 votes Thank Flag Link Sat Oct 15, 2011
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