How much bonus income do banks take into account?

Regardless of how generous the bank might be in allowing bonus money to be counted as income, a growing number of co-op boards are not including bonuses in earnings calculations.

the same as someone who makes 100K and doesn't get a bonus

Thaks NYCMatt and MAV - I'm specifically wondering if banks all have to meet some standard if they wish to sell the loan to an agency.

If one bank tells me they won't count bonus income, what are the chances another one will? Is it worth starting loan applications at a few major lenders?

attorneys get almost all of their income in the form of draws, and are self-employed. back in the day the bank would just ask for a two year history of bonus payment and average that.

thankfully i'm not seriously in the market right now, because we couldn't get a loan if we tried, and i'm not at the all cash point.

although this person has an interesting approach, that wouldn't work for coops, and i wouldn't touch for anything. still, the lengths some people will go to.

http://mortgage.freedomblogging.com/2009/10/13/jumbo-loans-to-return-in-four-years-banker-says/19525/

AR -why would you even want to pay all-cash? Home mortgage interest is one of the few large remaining tzx deductions.

because she states that she doesn't believe she could obtain a mortgage?

Because in the end the thousands of dollars in interest you're paying to the bank is more than the tax deduction.

NYCMatt- but couldn't you be investing the money that you would otherwise have put into the purchase - and making more % return than the interest?

maybe, maybe not. and for many there's the evil AMT.

I was told recently that even though the bonus is guaranteed, it doesnt count.

Still, even with the AMT - might do better. But guess there's no hope now for adjusting level at which AMT kicks in

As treasurer of a co-op board, our calculation is not as simple as base or base plus some percentage of bonus. Liquid assets, invested assets, length of time with employer, history of bonus payouts, nature of industry, referenc letters, and other factors are all taken into consideration. There are 2 things we look for: the montly total housing payments are not overly burdensome to the purchaser and twon, in the event of default, there are enough assets to go after. In any case, most co-ops have provisions in their offering plan / by-laws that allows for them to take over the unit, sell it, pay off the bank, and pocket the rest. This is a last resort, but great peace of mind for board members and shareholders.

any insiders want a fun exercise? i've been looking in midtown east, idly but for fun and to see if i might give up my downtown fixation in a few years if and when i decide to buy.

so i do a search for recorded sales, all of mid-town east. no other parameters. on the first three pages of most recent closings there is one commercial sale for $8mm, and only ONE other sale for more than $1mm. 29 residential sales, one for more than $1mm.

AR - just did that for last 60 days - starting from $4MM going down.

Actually, 26 residential coop/condo over $1MM ranging to slightly over $4MM

ph41, i did it by date. it's not a perfect system, because of the delays between closing and recording. as the unit shows up by closing date, unless you scroll through the last 60 days every time you look you miss out on units that closed earlier but recorded after the last time you looked.

again, by date. of the 30 most RECENTLY dated sales.

AR - smaller apts - guess that means that first time buyers are feeling more confident of re and are coming into the market.

ph41, i posted this on a mortgage thread for a reason. they are the only ones who can get a mortgage. the spread these days between one and two bedroom pricing is narrowing quickly. which should be a warning sign to the young ones but they are not paying attention.

Point 1. Last 12 months all lemmings.
Point 2. Always! If rate of return greater than cost of capital Lever up.
Point 3. Bonus used to be an extra large turkey around Xmas. May I have some more, sir?

w67th, yes,but as to point 2, that pesky if. i would want to buy when interest rates are higher.

chase is averaging the last 2 years

for jumbos?

AR: I am surprised that you would have trouble getting a jumbo mtge in Manhattan.

10023, maybe i'm wrong. but the hubby made equity partner a year and a half ago, and law firms pay after the fact so our income actually went DOWN last year on paper. will rise sharply this year, but ironically now that i can afford what i'd like (due to income increase and market correction) i wouldn't be able to get a mortgage. but i don't know what i could swing if i really wanted to do it.

also, 90% or so of his income is in draws. very high.

Lmao. Aboutready try a strategic mortgage fail. Bid on something u can handle all cash. Bid w financing contingency with a wink and nod to mortgage borker/ friend (this may be illegal) ; ), see bid fall thru and ask 30% off and go all cash. All the kool kids r doing it.

Most law firms have relationships with private banking depts, where even first year associates can open a checking account. They are used to dealing with law firm partners for lending. Of course, you still have to put 40% down, as banks now prefer to be repaid if something goes wrong.

No lawyer, partner or not, is safe anymore. http://lawshucks.com/layoff-tracker/

that's the problem, modern. until about 3 months ago i would have bet that i could get our private banker to get a deal done. but not now.

luckily his firm is so conservative it's positively neolithic. and even i don't feel secure.

W67: I like that.

"Lmao. Aboutready try a strategic mortgage fail. Bid on something u can handle all cash. Bid w financing contingency with a wink and nod to mortgage borker/ friend (this may be illegal) ; ), see bid fall thru and ask 30% off and go all cash. All the kool kids r doing it."

wow, impossible not to be cool handling cash like that! there's so much to learn for me on that department...

With all these being barfed up again. It would be hard to tell if a strategic fail bid came it. At least it keeps the unit off market for 4 months and at 1% burn rate a month no to shabby on 2 nd go around.

I'm evil.

no, you're naughty.