MORTGAGE: PROGRAM AND MISC EXPLANATIONS
Calculating Income:
(bank does not calculate how you do)
Personal Tax Returns & the Paystubs are the main items the underwriter will derive income from.
The chief calculation is:
|
Net Income = |
+YTD Base Salary divided by weeks * 52 / 12
+Average of over Overtime & Bonus of the last 2 years -Unreimbursed Employee Expenses |
|
Personal Income:
|
+ Gross Income (Page 1 Line 22)
- Unreimbursed employee Expenses (Schedule A Line 21) |
|
Rental Income: per property
(where applicable) |
+ 75% Rental Income (schedule E Line 3)
+ Home Owners Insurance (schedule E Line 9) + Mortgage Interest (schedule E Line 12) + Property Taxes (schedule E Line 16) + Depreciation (schedule E Line 20) - Total Real Estate Expenses (schedule E Line 21) |
|
Business Income
(where applicable) |
+ Business Income (Schedule C Line 7)
+ Depletion (Schedule C Line 12) + Depreciation (Schedule C Line 13) + Interest (Schedule C Line 16) + 1/2 self employment tax (Schedule SE Line 5) |
Conforming Loan Limits
Higher Limits can be considered High Balance or Jumbo
|
1 Unit 2 Unit 3 Unit 4 Unit |
$417,000 $533,850 $645,300 $801,950 |
Jumbo
$625,500 $800,775 $967,950 $1,202,92 |
FHA
FHA MINIMUM DOWN PAYMENT: |
3.5 % of purchase price
|
FHA Fees
|
Their are 2 FHA fees: The FHA Funding Fee & the Monthly MIP.
|
The FHA Funding Fee
1.75% of Loan Amount
MONTHLY MIP
20 years or more
LA$625,500 or less
$625,500 or less $625,501 or more $625,501 or more |
LTV95.00 or less
95.01 or more 95.00 or less 95.01 or more |
MIP.80%
.85% 1.00% 1.05% |
15 years or less
|
$625,500 or less
$625,500 or less $625,501 or more $625,501 or more $625,501 or more |
90 or less
90.01 or more 78 or less 78.01 - 90 90.01 or more |
.45
.70 .45 .70 .95 |
FHA Condo purchase
The project must be FHA Approved in order for the units to qualify for the FHA program. Click here to verify the project is FHA Approved.