Elliott Homes “Rule of Thumb” #1
Affordable House Payment
Gross monthly income times .30
Elliott Homes “Rule of Thumb” #2
10% of Gross monthly income.
If the monthly bills - car payments, credit cards, student loans, child support obligation, etc.
(utilities and child care are not counted)
exceed 10%, it will have an adverse effect on the Affordable Housing Payment.
Elliott Homes “Rule of Thumb” #3
About 1% of the loan amount. This should include Principal, Interest, Taxes, Fire Insurance and Mortgage Insurance.
Elliott Homes “Rule of Thumb” #4
Lenders are understanding.... address the explanations for any derogatory credit with common sense and back-up documentation whenever possible.
Elliott Homes “Rule of Thumb” #5
Unless the self employed individual is making a "significant" down payment, the underwriter will be looking for two full year’s 1040’s.
Elliott Homes “Rule of Thumb” #6
Lenders like to make loans based on common sense and documentable income, be as thorough as possible in gathering your income, expense and credit data. This will make the process a lot easier and less stressful.