Posted on: 15th Jan, 2010 06:35 pm
Hello, we purchased a house in Poconos,Pa in early 2004 ,paid $300k.We put almost 20% down-non income verification-no questions asked,got 6.75%.I stay home with kids and my husband is self employed and doesn't show a lot on tax return and that's the problem in this case .We have $230k loan , $1650 monthly mortgage+$700 tax, so we were thinking about going down to 15 year mortgage, which would cost us $1800 maybe $1850 + tax.Here's the question-how much income should we show on tax return to get a loan these days---I know it's much more difficult than 6 years ago.My score is 754 and we have let's say maybe $600 extra in monthly payments(credit cards) and his car has 6 payments left(financed).Thanks a lot!
There are certain things a lender can do to maximize the allowable income used.
You should meet with a lender that can review your tax returns and properly qualify you.
With out knowing the full details of your income, we couldn't answer your question.
These days, you can't just file your returns making double what you did last year and qualify. The lenders would be looking at the last two years and would need a justifyable reason to use just the last year.
You should meet with a lender that can review your tax returns and properly qualify you.
With out knowing the full details of your income, we couldn't answer your question.
These days, you can't just file your returns making double what you did last year and qualify. The lenders would be looking at the last two years and would need a justifyable reason to use just the last year.
I agree, meet with a lender to see if you can qualify with whatever you show as your net on your tax returns. The rates I am seeing in PA for a 15 yr fixed are well below 5%. A no income verification loan (or stated income loan) will result in a higher rate. Also, the loan to value ratio will need to be around 70%
to piggyback on elnora's and eric's opinions, i must add that no lender in his/her right mind would suggest to you the amount of income you ought to show on tax returns in order to qualify. the income to qualify is based on the information you provide from tax returns, and for a lender to tell you the magic number would be bordering on a fraudulent transaction. you make however much you make - we can't tell you what the number should be.
>>my husband is self employed and doesn't show a lot on tax return and that's the problem in this case
you're right, that's going to be your obstacle. it sounds like you got a no-doc mortgage, and they don't exist anymore. you may have gotten a stated-income mortgage, and they still exist, but they're really hard to come by nowadays. personally, i don't think you're going to be able to refinance in todays environment unless you can show two years worth of acceptable income on your schedule c.
you're right, that's going to be your obstacle. it sounds like you got a no-doc mortgage, and they don't exist anymore. you may have gotten a stated-income mortgage, and they still exist, but they're really hard to come by nowadays. personally, i don't think you're going to be able to refinance in todays environment unless you can show two years worth of acceptable income on your schedule c.
I think she is saying that the NET income is too low.
apriszko,
I highly recomend you take a few "dry runs" at going for a refinance though some of the online mortgage/refinance quoting sites. this will take you through the process and give you instant results. you'll find out very quickly whether or not you will qaulify and what the stumbling blocks might be before you go in to meet someone in a live environment.
If you're wanting to test the water this is a pretty ideal way to do it. no cost, no obligation and fast.
I highly recomend you take a few "dry runs" at going for a refinance though some of the online mortgage/refinance quoting sites. this will take you through the process and give you instant results. you'll find out very quickly whether or not you will qaulify and what the stumbling blocks might be before you go in to meet someone in a live environment.
If you're wanting to test the water this is a pretty ideal way to do it. no cost, no obligation and fast.
color me skeptical, rise.