636,127
Despite the fact that a higher "per hour" compensation may be present, one could easily disqualify themselves from a loan if they go from full-time "guaranteed" hours to "per diem" hours.
EXAMPLE:
Borrower earns $20 per hour with 40 hours guaranteed per week, but then accepts a per diem opportunity to instead earn $35 per hour (when called upon). In the eyes of a Borrower, they got a raise. In the eyes of the Lender, there may be months where the Borrower doesn't earn a penny.
Essentially, per diem means you are a "hired gun" with no guaranteed hours...and the lack of guaranteed hours could be the problem.
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Kris Collis, Associate...
East Stroudsburg, PA
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Thomas J. Nelson, REAL...
La Jolla, CA
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John Juarez
Fremont, CA
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David M. Dwares
Fort Lauderdale, FL
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Rodney Downs
Springville, UT
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Nina Hollander, Broker
Charlotte, NC
-
Dario Ferreira
Attleboro, MA
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Michael Jacobs
Pasadena, CA
-
Doug Dawes
Topsfield, MA
-
John Pusa
Glendale, CA
4,581,818
Over the years, I have avoided talking about the more detailed explanations of loan qualification leaving such discussions to professionals in that particular field. Experts can give a better-informed answer. And advice.
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John Pusa
Glendale, CA
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John Juarez
Fremont, CA
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Lyn Sims
Schaumburg, IL
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Rodney Downs
Springville, UT
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Kathleen Daniels, Prob...
San Jose, CA
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Nina Hollander, Broker
Charlotte, NC
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Jeff Pearl
Lovettsville, VA
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Ron and Alexandra Seigel
Carpinteria, CA
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Doug Dawes
Topsfield, MA
1,322,519
Some special programs are for those below a maximum income level. I recently represented a buyer family in an attempt to purchase a home where the one of the requirements was that the family income did not exceed a certain level.
There were 80 submissions for the chance to buy the home.
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Olga Simoncelli
New Fairfield, CT
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Rodney Downs
Springville, UT
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Kathleen Daniels, Prob...
San Jose, CA
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Nina Hollander, Broker
Charlotte, NC
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Jeff Pearl
Lovettsville, VA
-
Ron and Alexandra Seigel
Carpinteria, CA
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Michael Jacobs
Pasadena, CA
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Doug Dawes
Topsfield, MA
-
John Pusa
Glendale, CA
7,862,367
Some local programs have a maximum income to qualify.
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Jeff Pearl
Lovettsville, VA
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Kathleen Daniels, Prob...
San Jose, CA
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Nina Hollander, Broker
Charlotte, NC
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Rodney Downs
Springville, UT
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Michael Jacobs
Pasadena, CA
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Doug Dawes
Topsfield, MA
-
John Pusa
Glendale, CA
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John Juarez
Fremont, CA
1,201,302
I'll be interested in the answer
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Jeff Pearl
Lovettsville, VA
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John Pusa
Glendale, CA
-
John Juarez
Fremont, CA
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Rodney Downs
Springville, UT
-
Kathleen Daniels, Prob...
San Jose, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Ron and Alexandra Seigel
Carpinteria, CA
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Michael Jacobs
Pasadena, CA
3,589,741
Depends on the loan program.
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John Juarez
Fremont, CA
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Rodney Downs
Springville, UT
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Kathleen Daniels, Prob...
San Jose, CA
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Nina Hollander, Broker
Charlotte, NC
-
Jeff Pearl
Lovettsville, VA
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Ron and Alexandra Seigel
Carpinteria, CA
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Michael Jacobs
Pasadena, CA
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Doug Dawes
Topsfield, MA
4,175,640
Hello Rodney Downs generally it depends on the loan program.
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John Juarez
Fremont, CA
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Rodney Downs
Springville, UT
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Kathleen Daniels, Prob...
San Jose, CA
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Nina Hollander, Broker
Charlotte, NC
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Jeff Pearl
Lovettsville, VA
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Ron and Alexandra Seigel
Carpinteria, CA
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Michael Jacobs
Pasadena, CA
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Doug Dawes
Topsfield, MA
913,348
Depends on the loan program usually. VHDA loans for example. We have Federally Targeted Areas of Economic Opportunity here where they allow lenders some flexibilty with programs.
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Kathleen Daniels, Prob...
San Jose, CA
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Nina Hollander, Broker
Charlotte, NC
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Rodney Downs
Springville, UT
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Michael Jacobs
Pasadena, CA
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Doug Dawes
Topsfield, MA
-
John Pusa
Glendale, CA
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John Juarez
Fremont, CA
921,504
A probationary position requiring skills the work history does not support.
Example: Currently manufacture dentures in the basement and new position is regional sales represtnative on contingency income with the same company.
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Kathleen Daniels, Prob...
San Jose, CA
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Rodney Downs
Springville, UT
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Ron and Alexandra Seigel
Carpinteria, CA
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Michael Jacobs
Pasadena, CA
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Doug Dawes
Topsfield, MA
-
John Pusa
Glendale, CA
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John Juarez
Fremont, CA
3,349,229
That will depend on the loan program the buyer qualified for.
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Rodney Downs
Springville, UT
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Jeff Pearl
Lovettsville, VA
-
John Pusa
Glendale, CA
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John Juarez
Fremont, CA
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Michael Jacobs
Pasadena, CA
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Kathleen Daniels, Prob...
San Jose, CA
5,111,821
Is it a loan that limits eligibility for the loan based on some maximum amount of income?
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Rodney Downs
Springville, UT
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Jeff Pearl
Lovettsville, VA
-
John Pusa
Glendale, CA
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John Juarez
Fremont, CA
-
Michael Jacobs
Pasadena, CA
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Kathleen Daniels, Prob...
San Jose, CA
5,772,575
Rodney,
You have excellent answers. A
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John Pusa
Glendale, CA
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John Juarez
Fremont, CA
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Michael Jacobs
Pasadena, CA
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Rodney Downs
Springville, UT
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Kathleen Daniels, Prob...
San Jose, CA
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Jeff Pearl
Lovettsville, VA
1,505,863
Some good answers here. I would have said never, but had never heard of these low income loans before. Thanks for the learning opportunity!
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Rodney Downs
Springville, UT
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Jeff Pearl
Lovettsville, VA
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Jeff Dowler, CRS
Carlsbad, CA
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John Juarez
Fremont, CA
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Michael Jacobs
Pasadena, CA
3,167,489
Well I had a buyer who was just under the USDA limit once that certainly couldn't have qualified for the no downpayment loan she got with a raise... she was literally like $50 under the limit for a single person. Of course the next year she had the house and got a raise.... all good.
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Rodney Downs
Springville, UT
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Jeff Pearl
Lovettsville, VA
-
John Juarez
Fremont, CA
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Michael Jacobs
Pasadena, CA
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Don Baker
Eatonton, GA
380,867
loan programs with income caps
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Rodney Downs
Springville, UT
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Jeff Pearl
Lovettsville, VA
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John Juarez
Fremont, CA
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Michael Jacobs
Pasadena, CA
1,846,851
Max income on a loan type.
New pay not guaranteed with hours or some slick variation.
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Rodney Downs
Springville, UT
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Jeff Pearl
Lovettsville, VA
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John Juarez
Fremont, CA
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Michael Jacobs
Pasadena, CA
5,060,238
That's really a great question for one of our mortgage officer members - Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi , John Meussner or George Souto for starters
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Rodney Downs
Springville, UT
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Gene Mundt, IL/WI Mort...
New Lenox, IL
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Michael Jacobs
Pasadena, CA
1,077,951
Jason E. Gordon gave a great example. Another very easy example that comes to mind is with the USDA loan product - it is income driven and exceding a certain income in a certain area is an automatic "no" for the program.
Some down payment assistance programs are also set aside only for those within a certain % of AGI (adjusted gross income), usually comparable to local 'povery level' numbers. Exceding the income threshold on these products can cause a borrower to no longer qualify as well.
Typically a raise is a good thing, but some programs have income caps, and lenders also care about consistency and "likelihood of continuance", so while a raise is nice, 'change' is often bad mid-process.
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Rodney Downs
Springville, UT
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Jason E. Gordon
San Diego, CA
5,237,958
Dpwnpayment assistance programs have income limits that disqualitfy you at certain income levels.
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Rodney Downs
Springville, UT
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Jeff Pearl
Lovettsville, VA
1,552,938
I'd ask Jason E. Gordon
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Rodney Downs
Springville, UT
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Michael Jacobs
Pasadena, CA
1,291,481
Without knowing more, I'd guess that it had to do with the mortgage program they were applying for. There are income "caps" on some mortgage programs. The increase in pay could have pushed them over the limit for that program.
Moving forward may have been impossible within another program possibly (?) ... and again, without knowing more details, I'm just guessing that was the issue. There are many asterisks and rules that apply to specific mortgage programs, etc.
Hope that helps ... but if you have further questions, shout ...
Gene
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Rodney Downs
Springville, UT
2,191,471