· 
Home Equity Loans
Income - what a fantastic concept!
Back in the old days (5 – 10 years ago) your typical lender (mortgage bank, community bank, etc.) did not what you to spend anymore than 28 – 30% of your GROSS income (income after all other expenses that you currently have) income on your mortgage, taxes and insurance.
Well, I can tell you that this 28 – 30% of Gross Income has been ripped off the hinges and thrown in the scrap heap – at least along the coasts. I mean, it is pretty crazy out there in some markets and you might end up spending 40 – 50% of your GROSS income on your piece of the American dream. This craziness is definitely not happening all over the country and it is a good idea to contact a mortgage professional in your area to get the exact Gross Income qualifications necessary.
Remember that all forms of income count:
- If you are married and have 2 incomes that is definitely a PLUS when it comes to buying a home, town-home or condo.
- If you have any income from, let’s say a nest egg that has income producing bonds, then this is another PLUS.
- Another possibility is that if you are involved in a relationship, not married but living together then you just might qualify under certain lenders regulations as having 2 incomes – a PLUS.
Some clarification math:
Normal part of our awesome country
- Pretax income of $5,000 x 30% = $1,500 spending limit
- Pretax income of $7,500 x 30% = $2,250 spending limit
- Pretax income of $10,00 x 30% = $3,000 spending limit
The Abby – normal part of our awesome country
- Pretax income of $5,000 x 45% (middle of the range) = $2,250
- Pretax income of $7,500 x 45% = $3,375
- Pretax income of $10,00 x 45% = $4,500
See what you can qualify for. Click here
