Qualifying Income for a Mortgage

How Much Income Do I Need?

What income is required to qualify for a mortgage home loan? There are many factors to determine if you qualify for a loan and how much you can afford. It's very easy to find out. See our Qualifying worksheet and How much can I afford worksheet. There are also many ways to determine your gross earnings. See Income Form.

Here is a list of income related programs. This is very useful with other types of income, or self-employed.

• Full Documentation - Tax Returns or W2's or equivalent
• Lite Documentation - 12 Months Bank Statements
• Stated Documentation - No Income Verification (for Self-Employed and Wage Earners)
• NINA (No Income / No Asset) Verification Income

Mortgage companies in the past used 28% for housing expense (*mortgage payment, homeowners insurance, property taxes, and also include, PMI insurance, Association dues, and etc.) and 36% (8% more debt) for *all other debts.

Today you can qualify for a mortgage loan with a total debt load of 50% plus. You have to determine if you can handle the payment and have reserves to cover at least six months of payments in case your income changes for the worse. It's not required to qualify.

The three C's of qualifying, approval or getting a home loan is.

1. Credit
2. Collateral
3. Capacity to pay

• Your credit is one factor. It doesn't have to be perfect to qualify for a home loan.
• If you are purchasing a home or refinancing your current mortgage your home has to be functional to qualify for a loan (it can't have a need for major repairs).
• You have to be able to make your payments

Most of the time if you have 2 of the three, you are likely able to qualify for a mortgage home loan.

If you would like to pre-qualify for a mortgage home loan, please fill out our pre-qualification form or call us at (616) 301-1811 with any questions, or just email us at Rommie.Bailey@Inter-Lake-Lending.com .

Two items that help determine your ability to purchase a home are how much you have for the down payment and how much you can borrow.

Fannie Mae provides a wide array of low down payment mortgage products to lenders that help you purchase a home. Your Fannie Mae-approved lender can discuss mortgage products that may suit your needs based on your gross income, expenses, and the cash you have for a down payment.

Some of the sources include your salary, bonuses or tips, dividends, and alimony or child support. Your Fannie Mae-approved lender needs to get a true picture of your total income to get you the mortgage amount you want.