Stupid question - how to buy given income split

This is a dumb question I am sure, but bear with me.

I'm 5 years into my career and at some point (probably in another 5 years) would like to buy a nice place. Not looking to do anything soon.

The down payment - even in NYC with 20% down - won't be an issue. But how do lenders deal with the 1) volatility in income and 2) split between base and bonus?

If this were IBD/PE , I feel like you could show that your bonus is fairly guaranteed or consistent in size. But with HF it's .. well, we all know it's not that.

Not looking for financial advice obviously just curious what others have heard or done themselves.

Is the point just that you need to buy almost or entirely in cash?

Comments (4)

Jul 1, 2022 - 6:56pm
Smoke Frog, what's your opinion? Comment below:

My mortgage guy only counts base and assets.

I think what will happen in your case is that they will haircut bonus by some percentage.

But honestly, these mortgage brokers are looking to lend so if you have three years of rather consistent base and bonus they won't care, they get paid to book the mortgage and worry about it blowing up is someone else's problem years down the line.

  • Investment Analyst in HF - Event
Jul 1, 2022 - 7:09pm

Sizable post close liquid assets relative to mortgage amount

Most Helpful
Jul 3, 2022 - 1:32pm
The EBITA addback, what's your opinion? Comment below:

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Dolores esse et tenetur sequi nihil incidunt. Eveniet eos tempore rerum sint.

Like the unadjusted- only with a little bit extra.
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