Question for you real estate people.
 

Ok my friend and I have the bank telling us two different things about first time home buyer loans. I'm trying to figure out if you have to make less than a certain amount a year to qualify for the first time home buyers rate. She told him they can't make over like $59k or so a year gross. Why would they take teh gross income for figering something like that? I would think they would take the net since you have to pay taxes and everything like that.

Any of you went through this recently?

Usually they go by the AGI - Adjusted Gross Income - line on your tax return.

But all lenders are different as far as their lending guidelines. If you're not happy with the answers this bank is giving you, try some others.

you qualify for a first time homebuyer loan by not having bought a home before. The only thing that is usually capped is the sales price... they will not give you the program for a $800K house for example... they are usually "starter" homes. You shouldn't be disqualified based on income.

go to www.ditech.com or www.lendingtree.com. Be careful, though. Once somebody approves you for a loan they will hound your ass!

Let me add - the AGI is for those of us who tax returns as proof of income. It's been 15+ years since I bought a house when I was a "real" employee, plus that was an assumption, so I have no idea what they're looking at as far as check stubs. :(

Exactly what we are going through pretty much. No actual check stubs but since I have my personal business accounts with the bank they can easily just look at both accounts. They just want 3 years of tax returns.

Back to my original question though, they told me I wouldn't have a prob getting a first time home buyers loan, even though I make over 60k/year etc but they told my friend that he would't because he also makes over 60k/year. Just doesn't make since lol. Time to call the lady up

Sosa call a broker to help you, the banks will not do you many favors. They want you to fit into their little square peg...

A broker will review several deals for you and pick the best one for your particular situation.

Just my 2 cents

DH