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Replies (8)
- Steve Heaney, "SteveHeaney"
- Contributions:148
No credit is sometimes better than bad credit and certainly easier to evercome. I think the bigger issue you will have is what figure you can use for income. I also think based on the limited information that an FHA loan is going to be the best way to go.
You mentioned the wife moved here two years ago. Unless she has two full years tax returns it will be very difficult to find any lender that will give you credit for her income. Perhaps if there was a history of self employment in the same line before she moved here and you could document that to connect the dots???
On your income, we would need to see the tax returns and know what, if any could be added back in from your deductions to get the real number. It is much tighter than it used to be....for sure.
I suggest you hook up with a local mortgage broker and provide them with your documentation for the analysis. Hopefully someone from Mississippi and even the Jackson area will respond to this request.
You mentioned the wife moved here two years ago. Unless she has two full years tax returns it will be very difficult to find any lender that will give you credit for her income. Perhaps if there was a history of self employment in the same line before she moved here and you could document that to connect the dots???
On your income, we would need to see the tax returns and know what, if any could be added back in from your deductions to get the real number. It is much tighter than it used to be....for sure.
I suggest you hook up with a local mortgage broker and provide them with your documentation for the analysis. Hopefully someone from Mississippi and even the Jackson area will respond to this request.
- CORONA NICK
- Contributions:2218
Traditionally, you need 20% down. Also, 3X your combined gross income, thats what you can afford. You obviously dont have the downpayment,
- John Lindley, "JPLindley12"
- Contributions:9
40k on 400k is more than enough for an FHA loan, you only need 3.5% and you have 10% down which means you can either put more equity into the house with the remaining 6.5% or you can save it and keep it as reserves in case you ever have a slow month at work and need extra cash to pay the mortgage. If you want to use your wife's income (which you would probably need to qualify), then you have to establish her credit. You can put her down as an authorized user on one of your credit card or get her a secured credit card- if you get a secured credit card for her i recommend using bank of america because they report to the credit bureaus every 7 days rather than every 14 days like most banks. a 670 credit score is more than enough to qualify as well, at 660 median FICO you get the best FHA rate possible which would be 4.75% with a point on any loan under 417k.
- Gary Kinberg, "Gary Kinberg"
- Contributions:229
John and Corona are wrong, Steve Heaney is right. Good luck.
- Total Mortgage Services, LLC, "Total_Mortgage"
- Contributions:56
John gave you a great answer, and I'd just like to add to it a little. With current mortgage rates as incredibly low as they are, an FHA mortgage loan may be the best option for borrowers looking to purchase a home. Besides the extraordinarily low down payment requirement (3.5%) and the $8,000 federal tax credit for first-time homebuyers, an FHA mortgage is also assumable.
An assumable mortgage is defined by the seller of a home having the ability to transfer their mortgage loan to the new buyer. Before taking over the mortgage loan, the lender of the FHA assumable mortgage will require the buyer to be credit worthy and will execute its due diligence by underwriting the mortgage loan again with the new buyer's credit history being reviewed.
An FHA assumable mortgage is especially beneficial when mortgage rates are as low as they are today. For example, if a borrower gets an FHA mortgage today, then decides to sell their home in five years, rate can potentially be in the 8% range. The assumability of an FHA mortgage will make the home more marketable by allowing the seller to offer any potential buyers a mortgage rate in the 4%–5% range.
An FHA assumable mortgage is also valuable because it is far less expensive when compared to the costs of a new loan. One example of the cost savings within an FHA assumable mortgage is because an appraisal is not required. In addition to the cost savings, the process is streamlined, allowing for a basic credit check to determine a borrower's income is adequate enough to support the mortgage loan.
So if you're looking to purchase a home, an FHA assumable loan makes the most sense, now and in the future.
I hope this information helps. Best of luck!
Regards,
Total Mortgage Services
- Gary Kinberg, "Gary Kinberg"
- Contributions:229
John was only mistaken in critical factors of applicable income. Please apply for a loan and get an underwriters decision for eligibility. You will need your and your wifes tax returns for 2 years with all schedules and possibly a formal year to date profit and loss statement of both your businesses. if you qualify income wise (debt ratio) than it seems you could and should buy now. From the generous but limited information presented, your wifes income in inelegible as less than 2 years self employed and your 50k usable income allows for a 241k loan amount after down payment assuming no other monthly credit cards student loans, car payment and other revolving and installment payments. I am estimating that as such: $4,166 monthly gross income for you and time 45% (a little conservative) equals $1,875 - estimated taxes and insurance of ( yearly divided by 12 for monthly) of $500 for an eligible debt load of $1,374 for a principal and interest payment on a 30 year loan at 5.5%. If you get a rate of 5% your get a loan of 255k. If the lender gets you a debt ratio of 49.5% you get loan for 274k or 290k at the rates mentioned. As you want a 360k loan the income does not work at the moment.
HOWEVER, if your wife has been s\e with 2 years tax returns filed or 24 calendar months with a full year filed, a partial year filed and year to date P & L by an accountant with usable income 16 to 20k than your are in for the 360k loan at an income of 66k between the 2 of you.
HOWEVER, if your wife has been s\e with 2 years tax returns filed or 24 calendar months with a full year filed, a partial year filed and year to date P & L by an accountant with usable income 16 to 20k than your are in for the 360k loan at an income of 66k between the 2 of you.
- NeedinFHA
- Contributions:122
Steve, It is much harder to get a loan because it ALWAYS should have been. 2 years ago a drivers license would have gotten you 400k loan with 200k HELOC no questions asked, a complete joke. Then they tell the person you can't afford the loan but you can the interest only and FOR sure we'll refi in 3 years...A lot of people make a lot of money but there already outta the market :)
- Liberty Mortgage
- Contributions:470
The basic answer on what you have written is "no finacing can be done."
1) You indicate your wife's a 1099 employee- We cannot use any of her income for 2009 since she is self employed. We need to see her returns for 2007 & 2008 and average them- You indicate she has only been here for 2 years so I suspect she will have no return for 2007. We cannot use 2008 alone thereby removing her from the equation.
2) You indicate your gross adjusted income is $50K- That comes to around $4166 per month. You also indicate a middle credit of 670 and you will only put 10% down. Due to your credit, your only option is going FHA since you are not putting 20% down and you cannot get mortgage insurance with Fannie Mae. The next problem arises with FHA- The max loan limit in Jackson, Mississippi for an FHA loan is $271K- Your loan amount is indicated to be $360K-
1) You indicate your wife's a 1099 employee- We cannot use any of her income for 2009 since she is self employed. We need to see her returns for 2007 & 2008 and average them- You indicate she has only been here for 2 years so I suspect she will have no return for 2007. We cannot use 2008 alone thereby removing her from the equation.
2) You indicate your gross adjusted income is $50K- That comes to around $4166 per month. You also indicate a middle credit of 670 and you will only put 10% down. Due to your credit, your only option is going FHA since you are not putting 20% down and you cannot get mortgage insurance with Fannie Mae. The next problem arises with FHA- The max loan limit in Jackson, Mississippi for an FHA loan is $271K- Your loan amount is indicated to be $360K-
Can we buy this $400K home?
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