ARGH, Stinking Airline Pilot Pay!

[Cheechako]

[RANT]

The airline industry has the most ridiculous pay structure that I've ever seen! It's hard enough for us pilots to understand, let alone a loan officer. Alaska, as do most airlines, have a minimum guarantee. 75 hours here. Unless we're on reserve and not flying at all, yes, that's what we're paid. However, the monthly totals are more like 85 hours (the max we can contractually have, actually). Quite a difference in monthly pay.

I applied for a home loan, produced my last two months pay checks that each have 85 hours of pay. The loan officer took it to their underwriter and they basically said anything over 75 is considered overtime and there needs to be a two year history to count that as income. I can do a "no income verification" loan, but, of course, that'll cost in interest points! So, we're out of luck unless I can find a home for $150,000 (no such thing exists in Alaska).

So, I guess we rent for six more months and hope the house we're living in doesn't sell when it goes on the market in July!

[/RANT]

[MQAAord]

Do you have a membership at an airline credit union? In dealing with both the Delta and the American credit unions, they had no issue with pilot payscales. The previous year's W2s, and the last 2 paychecks were used without question.

[fly22]

Chris sounds to me like you need to shop for someone who can. I have a mortgage license and promise you you can get a loan without proving the last two years while not paying points. Granted you can always do a stated income stated asset loan but you won't need to. Go find someone else!

[MQAAord]

Actually, Chris, you are eligable to be a member of the American Airlines credit union! Please check them out, they've been really good to us over the years. If you want, we can give you the name & phone number of a loan officer in Chicago who really knows his stuff and can probably help you.

From the AA credit union site:

Who’s eligible for membership?
Today, our Credit Union is open to anyone working in the Air Transportation Industry* and their families. From our start 70 years ago, when a small group of American Airlines employees formed a financial institution dedicated to helping their colleagues, we’ve grown into a strong, nationwide resource for all Air Transportation Industry employees. This includes:

All active or retired employees of American Airlines, Inc., American Eagle Airlines, or the Air Transportation Industry as described below:
Employees who work in the Air Transportation Industry such as:
Airline employees.
Government employees, such as TSA, FAA and others, who work directly in administration, regulation or security for airports, airlines or air transportation.
Airport employees who work in air transportation of freight and air courier services; and those working in airport support and service such as janitorial, baggage handling or aircraft maintenance.
Onboard airline food services who work on airport property.
Organizations related to the Air Transportation Industry.
Families: when you’re an AA Credit Union Member, you can sponsor membership for your spouse, children, parents, siblings, grandparents, grandchildren and permanent household members.
When does eligibility begin?
You can apply for membership as early as your first day of Air Transportation employment or any time afterward. You can then open up a savings account with a $5 share deposit, and a one-time $1 membership fee. You can also open a Jet or Flagship checking account with a $25 initial deposit.

[Cheechako]

Good idea with the airline credit union. Alaska has one. . . somewhere, it's probably in mecca (Seattle). I'll have to look it up.

The harsh reality is, when it comes down to it, who's going to approve a $250,000 loan to someone making $35K and nothing down?!?

I think we're just going to have to wait for that second year pay to kick in.

This has been a good "take a step back and re-evaluate" punch in the stomach.

[E_Dawg]

First year pay at airlines is the biggest pile of BS ever.

[Lee D]

I agree with the others; time to try someone else.
Bought a home a year ago. I explained how the pay works here, more or less. Then they simply wanted to see what my pay averaged out to be over 3 or 4 checks. I was a little worried about the underwriters, but they didn't even flinch. Apparently they had worked with pilots before. I used to be a real estate agent and I know how they can be.

[Ophir]

Originally Posted by Cheechako

Good idea with the airline credit union. Alaska has one. . . somewhere, it's probably in mecca (Seattle). I'll have to look it up.

The harsh reality is, when it comes down to it, who's going to approve a $250,000 loan to someone making $35K and nothing down?!?

I think we're just going to have to wait for that second year pay to kick in.

This has been a good "take a step back and re-evaluate" punch in the stomach.

Alright, I shouldn't really admit to this but Chris is a friend in need. I just bought a really expensive house. Granted I made a ton of money on the sale of my condo. But I am only putting 20% down. Like Joe says, I am doing it under a asset/income verfication only program. The program only hits me 1/4 point for doing this too. The kicker is that it is all based on your credit score. Mine happens to be outrageously good (785 average!) so they'll loan me anything. Give me a ring if you wanna discuss Chris. It seems you have the wrong mortgage person. -C

[Cheechako]

Thanks for the encouragement. I'm going to shop around and see what I can find.

[falconvalley]

Yeah man, USAA told me the exact same thing. I explained the pay system and they would only accept the guaranteed pay.