Finance. What would you do

[bermich]

Any loan officers on the board?

Here is a question.

Im waiting til febuary to apply for a loan.
Febuary is when my taxes will be completed for 2003

Would you show a smaller income on your taxes to save on taxes paid or would you show your actually income to help your financial status in obtaining a loan

If someone could show they make 100k as opposed to 200k to save on taxes but then it would show that you only make 100k on loan documents cause they go off of you income tax reports. A catch 22. Which would be better in the long run. Saving on taxes and maybe not getting a high loan amount or showing actual income (cash) and getting a high loan for a house or business?

[sp9]

I would go to Equifax and buy my credit report with my FICO (beacon) score (less than $20). If you are 720+ you are golden. Close out any un-needed credit lines (cards) now and it will bump you up a few points. Otherwise it really depends on how much of a loan you need. Look at your ratios - Income/Expenses. Figure out what % of your income your new mortgage payment will be and also what % all your expenses will be. The key is to keep your ratios in line with what that mortgage companies standards are. Some are a little more flexible. Adjust income accordingly.

The housing expense, or front-end ratio, shows how much of your gross (pretax) monthly income would go toward the mortgage payment. As a general guideline, your monthly mortgage payment, including principal, interest, real estate taxes and homeowners insurance, should not exceed 28 percent of your gross monthly income. To calculate your housing expense, multiply your annual salary by 0.28, then divide by 12 (months). The answer is your maximum housing expense.

The total debt-to-income, or back-end ratio, shows how much of your gross income would go toward all of your debt obligations, including mortgage, car loans, child support and alimony, credit card bills, student loans and condominium fees. In general, your total monthly debt obligation should not exceed 36 percent of your gross income. To calculate your debt-to-income ratio, multiply your annual salary by 0.36, then divide by 12 (months). The answer is your maximum allowable debt-to-income ratio.

Here's a look at typical debt ratio requirements by loan type:

Conventional loans
Housing costs: 26-28 percent of monthly gross income
Housing + debt costs: 33-36 percent of monthly gross income


FHA loans
Housing costs: 29 percent of monthly gross income
Housing + debt costs: 41 percent of monthly gross income

Gross income 28% of monthly 36% of monthly
$20,000 $467 $600
$30,000 $700 $900
$40,000 $933 $1,200
$50,000 $1,167 $1,500
$60,000 $1,400 $1,800
$80,000 $1,867 $2,400
$100,000 $2,333 $3,000
$150,000 $3,500 $4,500


I am too afraid to mess with my taxes. Uncle Sam always gets full $ from me.

[CutieFace]

Any loan officers on the board?

Here is a question.

Im waiting til febuary to apply for a loan.
Febuary is when my taxes will be completed for 2003

Would you show a smaller income on your taxes to save on taxes paid or would you show your actually income to help your financial status in obtaining a loan

If someone could show they make 100k as opposed to 200k to save on taxes but then it would show that you only make 100k on loan documents cause they go off of you income tax reports. A catch 22. Which would be better in the long run. Saving on taxes and maybe not getting a high loan amount or showing actual income (cash) and getting a high loan for a house or business?

depending upon your credit.....in cases like this you can either do a no income loan, use a verification form, or other ways of proving income....it will only hurt you if you cannot qualify for the size loan you need at 100k income.....

rates are really great right now if you can do it now I'd go for it right now....we're at like a 40 year low right now....

if you have any other qu estions you can pm me

Cutie

[CutieFace]

Scott those are FHA ratios....as long as the back ratio is under 50% there's no problem w/ most banks

Cutie

[bermich]

Yeah. I could do it based on credit or based on "state your income" but interest is higher.

Also. Some gay ass information that made me laugh.
The bank guy said that if someone makes 50k a year, he can only qualify for a 100k house. Basically a 600 dollar house payment.
So someone who makes 100k qualifies for only a 200k house? Those stats are so off it made me get up and laugh and leave.

Actually, its not for a house. Its for property, then a well needs to be dug, then foundation graded and tested for compaction before the actual home loan can go through.
Its hard finding a place that gives loans out just for land and then water testing and all that fun stuff.

[bermich]

CUTIE. You know of any property lenders?