Decrease in Income Question

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    Hello All,

    Quick Review of where we’re at in the process.

    1/28- Attended NACA Workshop
    2/6- Intake Appointment
    – Thanks to this forum, my wife and I were very prepared for our appointment. Our MC said that we had the most documentation ready he has ever seen during an intake appointment. We even brought our voter registration cards ! (Special Thanks to Tim and Kris ). At any rate he gave us a few action items, nothing out of the ordinary. LOEs (Different address on Wife’s id, 3 Charge Offs that were 5+ years old etc…).

    My wife and I have been very intentional with our credit these past few years and don’t have any collections or late payments. MC said that he thinks that we could be approved within the month. Anticipated Qualification date 2/28/17 (He is new to NACA, but I like his optimism)


    I have a stable job, my wife works as an consultant for different firms on temporary basis. Her current contract ends on 3/31 and we are expecting our 2nd child in July.

    She probably will take the rest of the year off, but somehow we negated to mentioned this fact during our intake appointment ( So much for being thorough). Our MC calculated our budget and affordability with both incomes. Didn’t realize this until I received the email this morning.

    We were approved for 420k, but we’re looking to spend 275k or less.

    We have our follow-up appointment next Thursday. Should I ask our MC to proceed with using only my income, because I would hate to delay the process or be flagged for a “decrease in income” later on in the process.

    Any thoughts?



    I would definitely run this past your MC! See what is affordable simply with your income. But remember, NACA goes by max PITI :-). For all you know, you can still get approved for the payment amount w/out your wife’s income. But just incase you can’t, you still know that too.

    Get this sorted out at your next appointment before you’re submitted to the underwriters. You definitely don’t want to get to the point where you have a contract on a house and now your wife can’t provide paystubs because she’s out of work. And bye bye house! That would be really bad.



    Thanks MjR719 !

    I’d swear this forum is a true lifesaver !

    We really appreciate it



    Hello Cali_Cool_Guy,

    You will definitely need to get your affordability recalculated based on your income alone or you’ll be facing some major stumbling blocks.

    Write a Letter of Explanation detailing what your plans are as far as her not working and the coming addition to the family, and get your file submitted to underwriting based on your income alone.

    MjR719 was right on the mark. You don’t want to get qualified and start house hunting then have the our underwriters or the bank throw up a red flag when her income suddenly stops.

    Tim Trumble
    Online Operations, NACA


    Thanks Tim !

    My MC emailed me today and I told him, and he said that he was going to check to see how do we proceed moving forward. He is new as we were his very first clients that he has helped out of training. Both MC’s in our office are fresh from training, but he has been very responsive in our communication and very honest about not knowing the nuances of the program.


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