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Answers (15)
- Mom2NAC
- Contributions:57
No, I was previously an engineer, but I don't think it's likely I would be able to find a night/weekend job doing that. With 3 kids in daycare, I would bring in more money with a $10 an hour job outside of work hours than I was at my old job (which I quit in August 2010 after having twins).
- Jonathan Himmelwright, "Mortgage Safari"
- Contributions:27
You stated that you are currently a stay at home mom. Are you going to be working PT at something that you did previous to having the child/ren? Also, if you are going to use FHA financing it IS possible to use PT income that you have been getting for less than 2 years. If you need more details please feel free to reach out to me.
- Carol Namath
- Contributions:24
Maybe you can buy a foreclosure for less money so you don't have to go back to work. It's not a bad time to rent, or to move in with relatives to save more money for your down payment either.
- Rhonda Porter, "rhondaporter"
- Contributions:20
A lender will want two years work history before factoring part time income. If you're paid hourly, your income will be averaged over the past two years.
Contact a local, licensed mortgage originator so they can help you with becoming prequalified.
Contact a local, licensed mortgage originator so they can help you with becoming prequalified.
- wetdawgs
- Contributions:26854
A Realtor(R) is not the right person to ask the questions you are asking, please ask a lender. The answers you've received about "two years" from lenders on this advice board are consistent with what all lenders are saying. Many agents will say "of course you will qualify", but usually you need preapproval from a lender before you go looking.
- Mom2NAC
- Contributions:57
Oh, that's not good news. I checked the site and couldn't figure out any of the tax information. I guess we will just have to ask the realtor when we move forward with this.
- Jim Simms, "JimSimms"
- Contributions:39
Two parts to counting income from a part time job, two years on the job and likely to continue for the next three years. Not all full time positions are 40 hours, maybe look for a full time position that matches your availability. That would allow your income be counted sooner. Hope this helps.
- Shane Milne, "ShaneTheMortgageMan"
- Contributions:463
Welcome. The current taxes are usually based on what the current owned paid for the home, which could be a lot less than what you are buying it for. A good real estate agent should know the tax rate.
- Mom2NAC
- Contributions:57
Thanks Shane, that's good to know. The houses I am looking at show taxes averaging around $6000/year according to Zillow, so if that's the case it makes my situation even better!
Thanks for the information!
Thanks for the information!
- Sam Shueh
- Contributions:379
Best way is go to your bank making an appointment with the mortgage officer. Normally, one needs 2 year W2. While you are at the bank asking them if they will give you a free credit report.
- Shane Milne, "ShaneTheMortgageMan"
- Contributions:463
I think your debt ratio is probably going to be OK then.
I know taxes are high in Texas. Austin I'm not sure if it's higher or lower than the average for the state (which I've found to be about 3% to 3.25% of the sales price). Let's say they are 3.25%, or on a $300k sales price that'd be $9,750/year, or $812.50/mo. Insurance let's say is $1,500/year, or $125/mo.
Since you have good credit (I'll assume 720 scores - but you may want to check it out at myFICO.com first, you can only get 2 scores from there, Equifax & TransUnion, but they will be the most accurate out of all the consumer websites that provide scores) you should be qualifying for low interest rates - let's just use 4.75% on a 30-year fixed. In Texas there will be plenty of lenders who can offer you combo loans, 1st mortgage at 80% of the home's purchase price and a 2nd mortgage to cover the remaining (even up to 95%). Let's say you are only putting 10% down, so getting a 1st at 80% and a 2nd for the remaining $30k. Let's say that 2nd mortgage interest rate is 8%.
Your total payment would look like:
1st mortgage: $1251.95/mo (4.75%, 30-year term)
2nd mortgage: $250.93/mo (8%, 20-year term)
Insurance: $125/mo
Taxes: $812.50/mo
Total: $2,440.38/mo.
You also have $50/mo in student loans.
You have $6,250/mo in income.
The housing ratio (house payment : gross income) is 39.046%. You may have read articles on the internet on how the housing ratio needs to be 29-31%, and those articles are correct if your loan had to be manually underwritten, those articles are also generally recycled information from decades ago. These days loans are almost always approved through automated underwriting, the most common cases when loans aren't is when there is very bad credit (as well as other very rare situations, none of which your situation has indicated it'd be).
Your total debt ratio (house payment + consumer debt : gross income) is 38.846%. Even with manual underwriting total debt ratios at 41-43%, you can see you are well under. With automated underwriting, using conventional financing (which sounds like it'd be the best option for you), and less than 20% down, lenders are usually looking to see the total debt ratio no more than 45%.
I know taxes are high in Texas. Austin I'm not sure if it's higher or lower than the average for the state (which I've found to be about 3% to 3.25% of the sales price). Let's say they are 3.25%, or on a $300k sales price that'd be $9,750/year, or $812.50/mo. Insurance let's say is $1,500/year, or $125/mo.
Since you have good credit (I'll assume 720 scores - but you may want to check it out at myFICO.com first, you can only get 2 scores from there, Equifax & TransUnion, but they will be the most accurate out of all the consumer websites that provide scores) you should be qualifying for low interest rates - let's just use 4.75% on a 30-year fixed. In Texas there will be plenty of lenders who can offer you combo loans, 1st mortgage at 80% of the home's purchase price and a 2nd mortgage to cover the remaining (even up to 95%). Let's say you are only putting 10% down, so getting a 1st at 80% and a 2nd for the remaining $30k. Let's say that 2nd mortgage interest rate is 8%.
Your total payment would look like:
1st mortgage: $1251.95/mo (4.75%, 30-year term)
2nd mortgage: $250.93/mo (8%, 20-year term)
Insurance: $125/mo
Taxes: $812.50/mo
Total: $2,440.38/mo.
You also have $50/mo in student loans.
You have $6,250/mo in income.
The housing ratio (house payment : gross income) is 39.046%. You may have read articles on the internet on how the housing ratio needs to be 29-31%, and those articles are correct if your loan had to be manually underwritten, those articles are also generally recycled information from decades ago. These days loans are almost always approved through automated underwriting, the most common cases when loans aren't is when there is very bad credit (as well as other very rare situations, none of which your situation has indicated it'd be).
Your total debt ratio (house payment + consumer debt : gross income) is 38.846%. Even with manual underwriting total debt ratios at 41-43%, you can see you are well under. With automated underwriting, using conventional financing (which sounds like it'd be the best option for you), and less than 20% down, lenders are usually looking to see the total debt ratio no more than 45%.
- Mom2NAC
- Contributions:57
We don't have any car payments or credit card debt (other than normal monthly spending, but there is never a balance). I pay $50 a month in student loans but that's it. We are buying (and selling) in Austin, TX.
- Shane Milne, "ShaneTheMortgageMan"
- Contributions:463
Part-time employment needs 2 years at the same employer in order to qualify, so you'd be a ways off.
$75k/year of income usually should be enough to qualify for a $300k home with a $50k down payment. What are your minimum monthly required payments on your consumer debt (car, credit cards, student loans, etc.)?
Where are you buying?
$75k/year of income usually should be enough to qualify for a $300k home with a $50k down payment. What are your minimum monthly required payments on your consumer debt (car, credit cards, student loans, etc.)?
Where are you buying?
- Kenneth Brittman Jr, "Ohiocreditrepair"
- Contributions:8
How can you hire a maid and she/he dosent do windows, you would think that should come with the job description! A experienced Realtor can provide you access to lenders who have guidelines to give you a APPROVAL or give you the needed credit score or job time. Now,this saves you time from calling or visiting lenders you cannot help you,but want to offer you the bate & switch. If you have experience or training in the new job, most lenders would want you to be off 90 day probation, before you would be considered for a loan approval. Make sure you credit is evaluated for errors, inaccurate and obsolete information that pulls down your credit score, but can be REMOVED LEGALLY..[Edited by Zillow moderator to remove promotional websites]
- Monica Brewer, "Moknowshomes"
- Contributions:93
You should get your free credit score since you get one free per year from all 3 companies. You could just go to freecreditreport.com.
Take that information with you to speak with a mortgage expert and they can/should be able to give you detailed answers. Good luck!
Take that information with you to speak with a mortgage expert and they can/should be able to give you detailed answers. Good luck!
Work history question?
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