Will New Job Affect Ability to Obtain Owner Occupied Loan

[Jonah Kolsrud]

Hey BP members,

I am currently looking to buy my first deal which I intend to house hack. I am at a point now where my savings are more that enough to do 10% down or more, but one question I have is regarding my pay stub. I work a salaried W-2 currently (same place of employment for 1.5 years and pays ~$70k per year), but am interviewing for a W-2 job which gives a base salary + quarterly sales bonuses (~$60k per year with quarterly bonuses projected at ~$5-7k). Should I take this new job, I am wondering what impact this will have on me getting pre-approval and should I be hunting to buy a house before I switch jobs?

Thanks in advance!

[Antonio Cucciniello]

@Jonah Kolsrud Yes, so one factor that lenders look for is called DTI or Debt to Income Ratio. The formula for it is: How much your expenses are per month/ how much you make per month pretax.

So, theoretically, if you keep the same spending at your new job, you would be increasing your DTI which is not good.

You want to have a DTI of below 36% for example, if you spend 720 per month and make 2000, then you have a DTI of 36% which is good!