Mortgage Qualification Problems Not Enough Income

Mortgage Qualification Problems Not Enough Income



Mortgage Qualification Problems - Not Enough Income
Qualifying for a​ mortgage can be a​ stressful affair .​
a​ common problem that can occur is​ not having enough income to​ qualify for the​ loan amount .​
If you​ have this problem,​ here are a​ few possible solutions .​
Mortgage Creativity
You find the​ house of​ your dreams and need to​ get a​ home loan .​
You have great credit,​ almost no debt and have been employed for five years with the​ same company .​
You apply for a​ loan and are stunned when you​ are turned down .​
The reason? the​ lender says you​ have insufficient yearly income to​ justify the​ loan amount .​
What the​ lender is​ really telling you​ is​ it​ doesn't think you​ can afford the​ monthly payments for the​ mortgage .​
Before you​ go ballistic,​ you​ should sit down and seriously review your financial situation .​
Getting a​ home loan is​ fine and all,​ but not if​ you​ are unable to​ make the​ monthly payments .​
Try to​ be realistic in​ your evaluation .​
It will save you​ many sleepless nights .​
But,​ what if​ you​ can afford the​ payment?
The first creative solution you​ may want to​ consider is​ an​ increase in​ the​ amount of​ the​ down payment .​
By increasing your down payment,​ you​ will reduce the​ amount to​ be borrowed which can make all the​ difference in​ qualifying .​
If you​ can bump the​ down payment up to​ 25% of​ the​ total value of​ the​ property,​ many lenders will relax the​ qualification requirements .​
A second creative solution involves alternative loan sources .​
Initially,​ good old mom and dad may be able to​ help you​ out .​
In fact,​ this is​ one of​ the​ traditional down payment funding sources for most first time homebuyers .​
A less known alternative,​ however,​ is​ your 401k retirement account .​
Under federal law,​ you​ can borrow up to​ 50% of​ your 401k balance .​
The repayments have to​ be made in​ five years,​ so analyze how this option will impact your finances .​
If you​ can pull it​ off,​ you​ will be in​ the​ advantageous situation of​ paying yourself interest instead of​ a​ bank .​
Regardless of​ the​ approach you​ take,​ insufficient income need not be the​ end of​ your home buying prospects .​
Get creative and you​ can find a​ solution.




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