Posted on: 10th Mar, 2009 01:40 pm
My girlfriend and I are looking to buy our first house. She makes about 29k a year and has about $300 a month in student loans and car payments. I am self employed and never showed much more than a couple grand on my 1099, this year I am showing 1099 on it. I have no monthly expenses. We both have good but "light" credit. We are in NJ and looking around 200k and under. Together we have about 30k saved but would only like to put down 20k just in case we need money after closing.
Thanks
Thanks
The numbers as you present them do not appear to work very well.
Your girlfriend's income is fine as it is documented at $29,000
Your income is 1099 and the last two years 1099 income will be averaged after expenses if your tax returns show expenses taken out of the 1099 income. If prior years were a couple thousand, I'm guessing the average of the last two years is not too high.
If your down payment is less than $40,000 on a $200,000 purchase, then the down payment is less than 20% and private mortgage insurance is required. I am not sure what "light credit" means. To get private mortgage insurance you will need credit scores of 680 or higher and probably need more documented income than you indicate.
If there is a relative who is willing to cosign and has income and good credit (their income and debts would be calculated along with yours) your best bet would be an FHA loan. FHA mortgages allow relatives to cosign and you get to use their income to qualifyand all three of your incomes need to qualify considering the debts of all three persons.
Your girlfriend's income is fine as it is documented at $29,000
Your income is 1099 and the last two years 1099 income will be averaged after expenses if your tax returns show expenses taken out of the 1099 income. If prior years were a couple thousand, I'm guessing the average of the last two years is not too high.
If your down payment is less than $40,000 on a $200,000 purchase, then the down payment is less than 20% and private mortgage insurance is required. I am not sure what "light credit" means. To get private mortgage insurance you will need credit scores of 680 or higher and probably need more documented income than you indicate.
If there is a relative who is willing to cosign and has income and good credit (their income and debts would be calculated along with yours) your best bet would be an FHA loan. FHA mortgages allow relatives to cosign and you get to use their income to qualifyand all three of your incomes need to qualify considering the debts of all three persons.
guest, your biggest hurdle is going to be your income. if your gross annual income, combined, is only $30ish thousand, your maximum mortgage payment for which you'd qualify is going to be in the neighborhood of $850. that is not going to buy you a home for anywhere near $200,000, as that number will have to include escrows for taxes and insurance and mortgage insurance (if any) that you'll be required to maintain also.
you're going to have to show 2 years of steady earnings before your income can be given enough credence to push you up into a higher price bracket, and that's going to take a while, clearly.
you mentioned "light" credit - i take it that means you don't have a great deal...that's not a bad thing, necessarily. your scores are going to have the most impact.
at this time, though, i'd suggest beefing up your income if you wish to qualify for a larger home, or start shopping in the lower ranges. before you begin shopping, take the time to have someone check your credit and analyze your situation so you don't waste valuable time.
you're going to have to show 2 years of steady earnings before your income can be given enough credence to push you up into a higher price bracket, and that's going to take a while, clearly.
you mentioned "light" credit - i take it that means you don't have a great deal...that's not a bad thing, necessarily. your scores are going to have the most impact.
at this time, though, i'd suggest beefing up your income if you wish to qualify for a larger home, or start shopping in the lower ranges. before you begin shopping, take the time to have someone check your credit and analyze your situation so you don't waste valuable time.
I am On Line now!
It seems that you may make enough money to cover the payments, however you just cannot document that income due to how you report YOUR income. Is that correct?
If so, then you could do this deal if you had a larger down payment. If could be a gift from a family member. There are lenders who will finance a property in NJ with a "stated income" option. Rates would also be reasonable and currently under 6% with that scenario.
If so, then you could do this deal if you had a larger down payment. If could be a gift from a family member. There are lenders who will finance a property in NJ with a "stated income" option. Rates would also be reasonable and currently under 6% with that scenario.
