Monthly Gross Calculation

Home Forums Purchase Program Monthly Gross Calculation

Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • #65559
    dware08
    Participant

    I have a question:

    What is the standard way NACA calculates monthly gross income?

    Say an individual makes 3,000 gross every two weeks:

    Does NACA calculate monthly income as:

    1) $3,000 x 2 = $6,000 per month. Since most months you’ll get 2 checks

    OR

    2) $3,000 x 26 = $78,000 per year; $78,000/ 12 = $6,500 per month

    Thanks!

    #65560
    Nelsont
    Member

    Biweekly: pay stub x 26 / 12

    Weekly: pay stub x 52 / 12

    I have seen reports of some MCs be lazy and use the 4 week month rule which works out to a 48 week year. If you can afford it that will only help you out and build in extra savings. I can tell you that my monthly piti and income was calculated by my MC on a 26 pay, 52 week year.

    • This reply was modified 4 days, 8 hours ago by Nelsont.
    #65562
    dware08
    Participant

    Oh….because mine wasn’t. 🙁

    My MC used just 2 checks and claimed that NACA prefer to go with the lowest number to be safe. It’s a difference of nearly $200 in my PITI.

Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Follow us on Facebook RSS Feed Follow us on Twitter