The following are a few basic “Rules
of Thumb” in the lending industry. These are very
general guidelines. We encourage you to see a lending
officer for specific information and to review your
personal lending qualifications.
AFFORDABLE HOUSE PAYMENT:
Gross monthly income
times 0.30.
REASONABLE BILLS:
10% of Gross monthly income. If the monthly bills -
car payments, credit cards, student loans, child support
obligation, etc. (utilities and child care are not
counted) exceed 10%, it will have an adverse effect on
the AFFORDABLE HOUSING PAYMENT.
TOTAL MOVE IN EXPENSE:
-
FHA 3 - 5%
-
VA 0 - 3%
-
95% Conventional 5 - 8%
-
90% Conventional 10-13%
HOUSE PAYMENT:
About 1% of the loan amount. This should include
Principal, Interest, Taxes, Fire Insurance and Mortgage
Insurance.
CREDIT:
Lenders are understanding.... address the explanations
for any derogatory credit with common sense and back-up
documentation whenever possible.
SELF EMPLOYED:
Unless the self employed individual is making a
"significant" down payment, the underwriter will be
looking for two full year’s 1040’s.
PREPARATION TIPS:
Lenders like to make loans based on common sense and
documented income, be as thorough as possible in
gathering your income, expense and credit data. This
will make the process a lot easier and less stressful.
For mortgage information please feel free to contact one of
the local lending specialists:
