1 yr additional income calculation

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  • #66872
    frankysmom
    Member

    Hi,

    Would like to include a part time job for additional income to increase our PITI. Is 1 year calculated as date of hiring or start date? The hire was June 1st, start date, June 15th 2019, we’d have to wait until month 12 or 13 or the exact anniversary date to re-qualify for the higher amount? Thank you!


    @ttrumble

    #66875
    Nelsont
    Member

    Don’t you need 2 years of tax returns?

    #66878
    frankysmom
    Member

    As I understand it , that requirement is for the main source of income. This is additional income.

    #66891
    TTrumble
    Member

    Hello frankysmom,

    To answer the start date part of your question, it would be from the actual start date instead of the hire date. You weren’t earning income from them between the hire date and start date, so it doesn’t count.

    However, I’m afraid I have some bad news for you. For part-time income to be eligible for inclusion in calculating your affordable PITI, you must have been on the job two years and the employer must provide a letter stating that they intend to keep you working there for the foreseeable future. It’s still great for building your MRF and buy down funds, but it can’t be used to calculate your affordable payment without meeting those two requirements.

    While that may seem to be a particularly strict rule, it exists for a very simple reason. There are just too many people who would start a part time job just before starting the process to artificially increase their PITI approval and then quit right after closing on their home. As such, we have no choice but to require proof of your dedication to generating that second income for the long term, both before and after buying your home.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    • This reply was modified 7 months, 3 weeks ago by TTrumble.
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