I'm a Delta new-hire and AF reservist. I'll be moving/buying a new house soon, but I don't know how to "prove" my income. I've been salaried my whole life until recently (active duty), and now I'm hourly/block paid for both jobs and won't make the same $ every month.

Does anyone know what a mortgage company will need or how this works?

 

Your last tax return if you're employed in the same field (aviation).

 

I guess my point is...2007 was all USAF income...very regular, same every month.

Starting Jan, I will be part-time reserve and Delta new-hire. I can give a decent estimate of how much I'll work/make, but I can't PROVE it to anyone...since I only get paid for what I work, and I haven't done the work yet (and have no similiar work history to show a pattern or anything).

I talked to a mortgage company and they said that I would need a "letter" from my employer stating how much I would make. Again...line, reserve, mil leave, etc all affect that number drastically so I don't know that they'd write me a letter.

Anyone have experience with this?

 

This will soon become a problem for many of us. The mortgage companies feel that their financial woes are due to the "stated income" people they loaned money to not being able to pay their bills.
Loan companies will soon stop giving loans to those on "stated income". You will have to show proof of actual income.

This is going to be a major problem for people like me in who live in Las Vegas where there are thousands of people who work on the strip (bartenders, servers, valets) all of whom are stated income based on their tips.

You could always get a loan based on your monthly guarantee, but that of course will be much lower than the amount you'll actually earn. Unfortunately, for a while, it may be your only course of action.

 

You mean people will actually have to report tip income on their taxes? The Horror

 

Take a copy of your W2 plus your most recent 3 paystubs. That shows a trend. Most major mortgage companies have people that are familiar with how airline payscales work.

If nothing else works, you can always take the contract and base your income on contractual guarantee.

 

Im no financial genius, but here is what I would do. Work backwards, figure out what the monthy payment(approximately) is going to be on your new mortgage. Any banks mortgage calculator will work. Then add to that number the rest of your monthy bills. The total needs to be around 40% of your gross monthly income. If you have good credit or very high income, it could be a little more, but 40% is a good ballpark. Now that you know what you need to prove you make, take a look at your two previous pay stubs. If the monthly gross is over your required gross, then you are set. If not, see how many hours over guarantee you would have to work to make the numbers work. If its a reasonable number, Im sure someone in payroll or HR would be willing to write a letter to that effect. Also, find a mortgage company that is willing to work with you. There are a lot of good companies out there that will walk you through the whole thing. I was in the same position when I bought my house, and it ended up being much easier than I anticipated.....granted they were handing out loans to anyone back then.

Good luck!

 

thanks fellas

 

I used the same mortgage agent for my last two houses. She's awesome, full of good advice, and understands the airline world. PM me if you want more info. She is licensed in all 50 states.

 

Thanks. I tried, but you are short of the PM threshold.