I stumbled upon my first (and hopefully only) setback in our home buying adventure.
I went to my bank today and was told that when she ran the numbers, I don’t make enough to get a conventional mortgage. Without going into specifics, it’s something like 40% of your income can be allocated to the mortgage. My mortgage was going to be… lets say $100 and the 40% of my income was $95. So if I made $5 more a month (is it really was such a low number, the true number I was short was $76 a month) I’d be able to get the ball rolling today. Since I don’t we have to look at other options.
So I said “Ok… but how is this possible when my current rent is more than my mortgage (+insurance, etc)?” You know, if I’ve been paying $150 a month rent for the past 10 years, and my mortgage is $100… how in the world does she come up with the notion that I cannot afford… in essence… cheaper rent.
Well it turns out that since my business has posted a loss the past two years (and we’re talking a nominal number here,) she cannot count that income. Which is a bum deal because my business is roughly 40% of my annual personal income.
On the plus side, if I go FHA and locate a cosigner, I’ll have no problems. Thankfully I can get a cosigner, so guess we’ll be able to move forward with this, but I feel sad and somewhat defeated on this. I really hoped I could do this on my own and with ease.
