June 20, 2019 at 5:43 pm #49456
So after ATD I realized that the Counselor and Underwriter were not using our full Gross Income as I had expected. It looks like they were using Box 3 from our W2s? Assuming we apply in October, will those W2s be used again, or will predictions be made based on current pay stubs? We are currently at 79%, waiting with bated breath for the new Median Income numbers, and trying to gauge how our pay increases will land us. So stressful!June 21, 2019 at 11:02 am #49464Peapod0609Member
I am in the EXACT same boat as you as for wondering how they determine income, and also wondering when the new median income numbers will be coming out.
If you use my wife and I’s full gross income, I think we are at like 82-83% of the median income in the MSA we wish to purchase in (which is listed as an MSA that is compatible with the new BOA grant that lowers your interest rate by 1%). But if you go by adjusted gross income, or say Box 3 of the W2 as you said, we are well under, like in the 74% range. I am also facing a possible promotion this year, so that could further push us out.
But I have not gotten a great answer on this, either. I have asked many times here, made a thread about it even, and I asked our counselor during our intake session a few weeks ago, and I still have no idea how exactly income is determined.
June 21, 2019 at 11:05 am #49466TTrumbleMember
- This reply was modified 1 year, 4 months ago by Peapod0609.
We never “predict” income and only work with proven current numbers, and your application will be based on the affordability determined at qualification. This being the case, you should have no issues with the 80% of median income threshold, since the new median income figures will certainly go up as they do virtually every year. You really have nothing to be stressed about.
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firstname.lastname@example.orgJune 21, 2019 at 2:26 pm #49474June 21, 2019 at 3:53 pm #49483Peapod0609Member
In that case, I hope they use primarily our 2018 W2 information to qualify us, as that would put us under the threshold for the 1% lower interest rate.July 10, 2019 at 9:28 pm #49837msrb8408Member
@ttrumble, what income do they use to determine income. Is it my current gross or is it the adjusted gross income from my w-2 / taxes?July 11, 2019 at 8:15 am #49838
They don’t use your W2 to qualify you based on income…The W2 is to verify your income is stable and legitimate. Your paychecks are what determine your income level for qualification.July 11, 2019 at 1:17 pm #49851
@nelsont Are you sure about that? That’s definitely not how it worked when I was at ATD. They wanted the W2s for qualification and the pay stubs to ensure income remained the same.July 11, 2019 at 2:31 pm #49856living20057Member
Doesn’t it also depend on if the W2s are from the same employer? My last two years of tax returns are less than what I make now. My current position I started in Nov. My tax return didn’t reflect my current income. They went with my pay stubsJuly 11, 2019 at 2:36 pm #49857
I have been in my current job with a new employer since January and I am closing on a house next week that I would have no possible way of qualifying for if my 2018 W2 was used to determine my max PITI.July 12, 2019 at 9:35 am #49877
@Nelsont I think I see our miscommunication here.. we’re talking about qualifying for Priority status with NACA, not for the amount of the loan. You’re absolutely right, paystubs are used for verifying your income for the payment/loan amount. When threads are talking about Median Income, we’re talking about qualifying (or not) for Priority status with NACA.July 12, 2019 at 9:47 am #49878
Gotcha! Sorry about that!July 16, 2019 at 1:46 pm #49957KlassyMember
They used the amount confirmed by my employer for the bank app.July 17, 2019 at 8:02 am #49975rbm2kidMember
@ttrumble our situation is a little different but on the same vine. My husband has a base salary plus he makes commissions. His commission is not guaranteed every month. So he received two good commission checks April and May but nothing in June and July but naca only looked at April and May so now our income is “predicted” to be over the 80% MSA. I have reached out several times asking that they recalculate our income because it caused delays with bank app and grant. But they have ignored us. Even while signing bank app I brought up that his projected income was wrong and they just said oh ok and moved on. Will the bank do their own assessment or are we just screwed? If you could @ttrumble give me a little clarity that would be great!July 17, 2019 at 8:42 am #49976
The bank will do their own assessment. They will request copies of your statements and notice the “missing” income.
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