Posted on: 06th Mar, 2011 09:08 pm
So, my husband and I were throwing around the idea of buying a house once our lease is up at our current place. I am full time babysitter, and my husband hasn't had a steady job in the past 2 years. I do not have good credit, but he does. We have someone willing to co-sign for us, with amazing credit, but I'm just not sure if buying a house is an option at this point. Any input would be greatly appreciated. Thank you!
Hi Guest,
You can buy a property if you have a co-signer for the loan. But when you take out the loan, check whether or not you have the affordability to pay off the mortgage. You can check out the given calculator for the same:
http://www.mortgagefit.com/calculators/howmuch-afford.html
Take care.
You can buy a property if you have a co-signer for the loan. But when you take out the loan, check whether or not you have the affordability to pay off the mortgage. You can check out the given calculator for the same:
http://www.mortgagefit.com/calculators/howmuch-afford.html
Take care.
Your co-signer has good credit, but, what about the co-signer's income?
Based on your employment and income, the co-signer better be ready, willing and able to make your mortgage payments at sometime. If you are late on a mortgage payment or do not pay at all, the co-signer must pay and the co-signer's credit will be affected and no longer be good credit.
If you have a co-signer with income that will help you buy a house and the co-signer knows the risks involved, go ahead and buy, probably with an FHA mortgage.
If I were you or the co-signer, I would suggest not buying until your husband has a steady job. BUying prior to that puts too many people's credit at risk.
Based on your employment and income, the co-signer better be ready, willing and able to make your mortgage payments at sometime. If you are late on a mortgage payment or do not pay at all, the co-signer must pay and the co-signer's credit will be affected and no longer be good credit.
If you have a co-signer with income that will help you buy a house and the co-signer knows the risks involved, go ahead and buy, probably with an FHA mortgage.
If I were you or the co-signer, I would suggest not buying until your husband has a steady job. BUying prior to that puts too many people's credit at risk.
The co-signer is now retired, and has plenty of money (she was given ALOT money from a settlement due to the death of my husbands father). She knows the risks, and is still willing to help us out. He has a job now, but like I said, his work hasn't really been steady. Our combined income is roughly $1,800 a month. The house we are renting at the moment is $950 a month, with nothing included... So, as far as us making payments, that would not be an issue. What I am concerned about is how the bank is going to look at this situation.
Hi Guest,
If you have a co-signer who has a good income and credit score, then you won't face any problems in getting a mortgage.
Thanks,
Jerry
If you have a co-signer who has a good income and credit score, then you won't face any problems in getting a mortgage.
Thanks,
Jerry
For an FHA mortgage, the lender will look at your credit scores and the debt ratios using all your and the co-signers monthly debts and your income and the co-signers income and maybe only the co-signer's income depending on what kind of job your husband has.
If your husband has a regular work week, W2 job, his income will probably be used as long as on current job six months or longer.
If he is paid hourly as work becomes available, probably none of his income will be used unless in the job 24 months or longer and the income can be averaged over last 24 months.
It is terrific the co-signer has lots of money and knows the risk.
The co-signer needs enough income to make the debt ratios ok.
If your husband has a regular work week, W2 job, his income will probably be used as long as on current job six months or longer.
If he is paid hourly as work becomes available, probably none of his income will be used unless in the job 24 months or longer and the income can be averaged over last 24 months.
It is terrific the co-signer has lots of money and knows the risk.
The co-signer needs enough income to make the debt ratios ok.