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Can I qualify for a loan on a condo?

I am self employed and made $24k in 2016 and $20k in 2015. My husband is a student a student and makes about $3k a year. We have $25k saved for a down payment and both have good credit in the 700's. Can we qualify for a 70k to 100k condo? by aj986664 from Glen Ellyn, Illinois. May 22nd 2017 Reply


Todd Tholl (toddtholl@leader1.com)
#4 ranked lender in Iowa - 237 contributions

Would need to review your tax returns. Do you file a Schedule C?

May 22nd 2017
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John Paunan (jpaunan)
#24 ranked lender in Illinois - 21 contributions

Yes, your credit and federal tax returns w/ schedules would need to be reviewed. Just so you know the income calculation that will be used, take your yearly adjusted gross income (income resulting after business expenses are removed) and divide that by 12 (number of months). Then take that monthly income number and multiply it by .45, which would be the maximum allowable debt to income ratio allowed by a conventional loan. An FHA may allow a higher % to be used, but I would start with the lower number to figure out a monthly budget. If you think that's an acceptable amount for a monthly housing payment, then your next step would be to contact a mortgage professional. I hope that helps!

May 22nd 2017
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

More info needed, but in general, in order to qualify, we would need to analyze your debt to income ratios.. Qualifying income must be stable and show a likelihood of continuance for the next 3 years.. If your husband is making $3K per year, and hes been on the job for less than 2 years, the income might be disallowed.. if you have been self employed for less than 2 years, then your income might be disallowed. Also, we need to know what the minimum payments are on your outstanding debt, and even if the student loans are in deferment, we still have to account for his payments once he's out of school. Also, to determine your DTI ratios, we also need to include the Condo Association fee, as well as all other fees associated with the purchase of this new home/condo. Again, you provided so little info, that it's impossible to advise you, but if you contact a competent loan officer, they should be able to advise once they obtain the necessary info.. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

May 22nd 2017
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