I wrote this nine months ago, but never produced the video for various reasons. Then this weekend I was at a first time home buying class and heard a story of how a purchase fell apart, because a customer made too much money on a first time home buyer loan
I am going to discuss how to avoid the Compliance Income trap, so your loan does not fall apart.
First time home buyer programs have income caps. If you make too much money, you will not qualify for first time home buyer programs.
First, let me explain What Compliance Income Is. Compliance income is projected income till the end of the year. It is not your actual income.
If you get a bonus, commision, overtime, or any income source – such that when you divide your income by the number of months you have worked and multiply by 12 the number of months in a year puts you over the cap – you will be disqualified from a first time home buyers loan.
If you are disqualified for a first time home buyer loan, the worst part is this: If the income has not been stable for two years, you might not be able to use the income. In situations where you were disqualified for making too much money, you might not qualify for conventional financing.
The best way to handle is to discuss and plan a strategy with your loan officer. That’s what I’m here for, to ensure you have an effective strategy for getting the kind of loan you’ll love. Call me, and let’s avoid costly mistakes.