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[quote=Anonymous][quote=AgentX][quote=Anonymous][quote=AgentX]You can't look at your income of $650K of what you use to qualify off of. As an agent I'm also self-employed, they use our net to qualify us. So I have approximately the same take-home percentage as you, the total into my hot little hands is 1/3 of the gross commission income I make after splits, expenses, taxes, etc. The reality is that for buying real estate, having a W-2 job is just easier to make fly because the income numbers are the same year in, year out. No variances.

Your income they use to qualify you is the $20K take home x 12 months = $240K. And on a $240K salary, someone could purchase a home (roughly) up to $750K - $800K.)

Now, to answer your question, I have a lot of clients looking now in Bethesda, Chevy Chase and surrounds. They are all the same level of frustrated you are. There is a lot of parent money out there, even with buyers in their 30's and 40's. It's not just mom and dad helping with that first condo down-payment. And millennials have tons of money. It's amazing. Their bank statements show $400K - $500K cash. I have clients twice their age without that kind of cash.

One other thing we have here is the ability for foreign buyers to purchase and when you have a buyer with $1M cash who needs a place to bury it, it puts the house prices out of reach for the rest of us. It...sucks. I'm sorry. I'm the shoulder to cry on right now for a few people in the same boat. I think the answer is to move further out. Rockville / Olney.

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This is bad advice. I have a similar financial situation to OP and I was qualified based on my full salary (650k+), not my 20k/month draw. [/quote]

It's not bad advice, it's how it works when you're self-employed which OP is. Unless you have a magical lender, those in the 1099 world live by different rules.[/quote]

You (and OP) don’t understand how law firm comp works. Yes, a good lender (Citibank, JPM) will understand and give her credit for 650k in income. At a very basic level, even if her 20k monthly draw is all she was taking home on 650k goes (it’s not), that’s net and after taxes (so akin to 400k gross). But she’s not paying a 65% effective tax rate and is netting a lot more than $20k a month (even if she doesn’t realize it!) [/quote]

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