Underwriter problem

[Corrine]

My LO called yesterday and said there's a problem with the underwriter. We are elligible for a first time home buyer program, met all the requirements (have children, first home, have funds for downpayment, etc) but there's an income limit. We didn't qualify for low income with the dirt cheap interest rate but we did meet the medium income limit with a rate of 5.50%. The underwriter had to verify hubby's income and estimate his future earnings for the next year. Problem is, he just got a promotion. He gets paid every two weeks so his checks always have 80 hours straight pay and an average of 110 overtime hours at time and a half but he wouldn't get paid while he's home. Now he is salary, get's paid while he's home. The problem is that his base pay per hour doubled. He still gets OT but not at time and a half. His company calls it a Chinese pay scale (the more OT hours you work the less you make per hour).

The underwriter just took his new pay and estimated he would continue working the same hours but that all his OT hours would be at time and a half. They estimated he got about a $25k raise!!! In actuality his raise will be about $8k. I explained the pay scale to the LO and even showed her old pay stubs versus new pay stubs so she could see he no longer makes time and half on OT. I also called the head of payroll to see if she would fax a statement about the pay scale, his estimated earnings and an average income of other employees in the same position he currently holds. The problem is we will get bumped out of the program if they don't revise his income which will force us to take a loan at a higher interest rate. My LO is going down today to personally speak with the underwriter about the error.

Is this sort of thing common and will the underwriter consider recalculated his income?

[firstsource]

I would suggest that you go to whomever it was that changed his pay structure (His boss-owner of the company etc) and have them write a "To WHom it may concern" letter.

He is a great and valued employee.

To give his income more stability, we have changed his pay from hourly to a salary scale. If any questions please give me a call"

That should work

Charles

[Corrine]

I did get the head of payroll to fax a letter explaining how his overtime hours are now calculated and what his real estimated earnings should be. I just wasn't sure if that would be enough.