In evaluating a borrower's application, mortgage lenders use gross income to calculate debt-to-income ratios, according to Investopedia. The general rule of thumb is that a borrower shouldn't have debt obligations that exceed 36 percent of monthly gross income.
If a borrower makes $4,000 gross per month, the maximum debt of that borrower under the 36 percent guideline is around $1,440. Some lenders exceed this threshold based on other application factors. Even though lenders use gross pay, Investopedia points out that borrowers need to consider their actual take-home pay when deciding whether they can afford to make a certain mortgage payment.Learn More
In order to get a loan, an individual must be at least 18. According to CarsDirect, teens under age 18 remain minors, and legal contracts they sign are not binding.Full Answer >
A conditionally approved loan is a loan approval based on the financial and credit information that an applicant has provided, and it is subject to final verification. Final verification includes employment and income verification, and additional documentation, such as pay stubs, bank statements and utility bills, is required before the loan is completely approved.Full Answer >
An unemployed worker can get a loan by borrowing against his home or his life insurance. If he has a regular income such as disability payments, he is eligible for a Home Equity Line of Credit. Furthermore, he can use a co-signer with better credit to get a loan.Full Answer >
A Parent PLUS Loan allows parents to borrow funds in order to pay for a child's college tuition. These loans are backed by the federal government and require that parents meet certain criteria, including income and credit requirements.Full Answer >