Another stupid bunch of questions :/

GonnaMakeIt · 11-03-2009, 01:46 PM

I am sorry to be so ignorant about all of this. Though we are approved for a trial HAMP at this time, I am scared the numbers are not going to work out right in the end...all because I don't understand how exactly they are going to calculate??
First off, I take home cash money...I am a bartender and I reported all the cash to them. I have not had to do taxes yet because this is a "new" profession for me and I don't know how it works?
Second, my husbands gross obviously includes OT. But that fluctuates so much that I'm not sure how to calculate that correctly either? They have cut out most OT in the recent months. This is also a new job for him...only been there since last Oct....so previous tax info is not accurate to be able to add and divide the numbers. Then he has child support and medical deducted from his check but of course this is net not gross.
Then they add taxes and insurance. They tell me they added $100 per month for each of these. When I do the math on taxes it is more that $100 per month! Wilshire is currently carrying our insurance and the paper I have shows more than $100 a month as well! So my figures are different than their figures!
This is so hard and frustrating for me! Any advice on how to properly get to the 31% ? I used the tool here but it seems to not change when I make changes?? Guess I can't do that right either.....

davephx · 11-03-2009, 02:08 PM

31% is of GROSS, no consideration of any deductions.

Take 31% of gross is your affordable 1st mortgage as the first step..before the Net Present Value test etc....

Than you have to usually be able to amortize at 2%/40 years but have to include taxes and insurance.

darkdays · 11-03-2009, 03:42 PM

You just need to be able to verify your cash for them. Since you don't have previous tax papers there are other methods. You will be asked for bank statements or if you are self-employed they take profit and loss statements. Did you fill out paperwork for HAMP for your expenses? If you take a look at the expenses portion they do let you list child support, etc. so that is used to determine monthly deficit/surplus but 31% of gross is the number the lender works with. Your biggest problem right now is going to be figuring out what your gross is based on what the lender can verify.