Posts Tagged Home Purchase
Many people earn part or all of their income from commissions. Commission income is permissible for mortgage loan qualification if a few requirements are met.
Generally, Conventional, FHA and VA loans require that the applicant have received the commission income for at least two years. The amount of income used to qualify will be based on an average of the past two years of commissions. Commission income should for the most part also show increases from year to year.
There are some borrowers that will qualify with less than the two years of commission income. These would be people that work for a company on a regular basis, but get paid piece work; such as auto mechanics, auto body repair technicians, medical billing transcribers and others that work a steady job for a company, but that company has chosen to treat their employees as private contractors. In such cases less than two years of commission income is permissible, however there must be at least twelve (12) months of commission income and a year of tax returns filed with commission income.
It is by no means a deal-killer if you’ve recently gone from being W-2’d to 1099’d, but you do have to have received 1099 income for at least twelve (12) months and filed tax returns with such before it can be counted as qualifying income for a mortgage loan, and must be documentable as continuing in the future.
As always, don’t hesitate to contact me with any questions you may have.
The number of foreclosures across America are causing more and more people to have to rent until they can repair their credit and buy again. This is causing a shortage of rental units and properties which is causing annalists to believe that landlords will be increasing rental prices because the demand will be high and the supply low.
If you are in a position to buy, this may be reason enough. Looking around the Salt Lake Valley I see homes that can be purchased for $1,100 a month being rented for $1,500-plus.
I came across this blog post on Active Rain today and thought I’d share it with you. It’s some good advice about getting a home inspection, even if you are buying a home from a home builder. Having bought new and pre-owned, I can say with personal experience that a home inspector is worth every penny. My experience has been that many builders cut corners here and there and the problems don’t rear their ugly head until after your new home warranty is expired. Also, many homeowners make “improvements” to their home that are shortcuts to doing it right. Electrical, plumbing, etc. My advice is always get a home inspection done, new or pre-owned.
- “Consumer Protection With Home Inspection” Law Impacts Homebuyers (eon.businesswire.com)
- Questions to Ask During a Home Inspection (brighthub.com)
- The ins, outs of a home inspection (seattletimes.nwsource.com)
- Home Inspection or Appraisal: What’s the Difference? ASHI Sets the Record Straight for Homeowners and Buyers (eon.businesswire.com)
- How To Choose A Home Inspector (chicagonow.com)