Posted on: 13th May, 2008 09:10 pm
We are 27 yr and 24 yr college students – one finishing up for masters, not having good credit (525, 660, 628) and the other is still student having good credit but not allowed to work while in school. However she has taken student loans, so the money comes from there, even I have student loans to pay for my edu. expenses. We're in a relationship and staying together in an partment with rent payment of 700 per month. We'd like to buy a home now that we're getting married in a few month. We're finding there are good homes to buy but not while we rent it's taking out a lot of dollars so better to buy. We have not recent lates or inquiries on our credit report, should we start shopping now or wait till we get married? Her father has a great credit history but he has recently bought a new home, so I doubt whether he'll be able to take out a new loan for us. He said he could be a co-applicant, cosigner and whatever that can help him get a loan for us. Is this good or bad? Will it be ok or tough for him to take a loan for us just because he'd recently taken one to buy his home? Meanwhile I have checked out some down payment assistance programs available for FHA. My work history is for 6 years as a part timer and I'm looking for full time employment. But are there chances of getting a mortgage prior to being a full timer? Thanks for any advice you may have for us
Hi John and Emily,
Welcome to the forum.
I am glad to hear that you are going to marry very soon. So best of luck for your future.
Your credit is not too good but still you can go for FHA loans because these are not score driven program. But before taking the loan you should think about whether you can afford the mortgage now or how much can you afford. Both of you have student loan. So after paying the monthly payments of the student loan think how much can you afford?
You have not said anything about how much both of you earn each month. Do you have enough savings to pay off the closing costs and the down payment?
Best of luck,
Larry
Welcome to the forum.
I am glad to hear that you are going to marry very soon. So best of luck for your future.
Your credit is not too good but still you can go for FHA loans because these are not score driven program. But before taking the loan you should think about whether you can afford the mortgage now or how much can you afford. Both of you have student loan. So after paying the monthly payments of the student loan think how much can you afford?
You have not said anything about how much both of you earn each month. Do you have enough savings to pay off the closing costs and the down payment?
Best of luck,
Larry
Hi John and emily,
I guess you should wait till you have at least 1 year of work history will full time employment source. Otherwise I don't think any lender would rely on your ability to make payments. It's not that I'm discouraging you but let's be practical. I understand there are a lot of new homes available since the markets all around are on a decline. But have you thought of this, if you can't continue payments and need to sell your home, you won't make it to the sale to pay off the loan because prices are already on a decline.
As far as the girl's father is concerned, I guess he wants to cosign the loan. But it won't make much sense because after all you'll have to make payments. And in this market where lending rules are tightened, no lender would offer loans simply on the basis of your part time employment. So, I suggest that you try out for a full time job, build up a work history and then look out for loans.
Take Care
I guess you should wait till you have at least 1 year of work history will full time employment source. Otherwise I don't think any lender would rely on your ability to make payments. It's not that I'm discouraging you but let's be practical. I understand there are a lot of new homes available since the markets all around are on a decline. But have you thought of this, if you can't continue payments and need to sell your home, you won't make it to the sale to pay off the loan because prices are already on a decline.
As far as the girl's father is concerned, I guess he wants to cosign the loan. But it won't make much sense because after all you'll have to make payments. And in this market where lending rules are tightened, no lender would offer loans simply on the basis of your part time employment. So, I suggest that you try out for a full time job, build up a work history and then look out for loans.
Take Care
As Sara stated, you really want to sit down and figure out if you can really afford the payment. However, your Father was very correct. He can sign and be a " non occupant co buyer " and assist you in obtaining an FHA loan.
Although you would have to qualify, it is very common for young persons to use a family member in obtaining an FHA loan. The term we use is "Kiddy Condos"
Technically speaking, a college student without a job can buy a house with a qualified co buyer.
Hope that helps. You would really need to speak to a lender regarding details and if a home purchase would be right for you!
Although you would have to qualify, it is very common for young persons to use a family member in obtaining an FHA loan. The term we use is "Kiddy Condos"
Technically speaking, a college student without a job can buy a house with a qualified co buyer.
Hope that helps. You would really need to speak to a lender regarding details and if a home purchase would be right for you!
You need to figure otu what you can afford, money borrowed from student loans does not count. Does any one of you work? If you get a job in same profession you were studying for your studies may be used as 2+ yrs employment history that is required for FHA. Your future father in law can help as a coapplicant but you need some income and be able to afford the house you buying. I would ask advice from a local FHA approved lender that you trust to see what you can qualify for and make sure you can afford it. There is not alot of $700/mo homes out there. Even a 100k home will cost you close to $1000 after insurance, taxes, assosiations dues. Add to that utilities and you are going to have to dish out 1000-1200 every month for a 100k home
eugene, i tip my hat to you, once again, for your reasoned and sound advice.
i concur - john & emily, your work history is critical in this situation. part-time employment is not sufficient to qualify you for a mortgage generally. also, as noted, emily's dad can be a non-occupying coborrower (if qualified), which would assist you in obtaining the mortgage.
frankly, though, i think you're better off finishing up your studies and beginning full-time work (at least one of you) before you get totally serious about purchasing. as eugene pointed out, your monthly tab is going to increase as soon as you begin owning. renting for the time being may be a better choice as it will allow you (we hope) to save a few extra dollars.
as pointed out, using student loan disbursements for living expenses is great while you're in school, but not considered a legitimate source of income for mortgage qualifications.
i also agree with you, john & emily, that your timing in looking at homes in this area is right. prices are, indeed, dropping in many segments; but particularly in the lower-priced market in ct. clearly, this depends on the specific are you're looking in, and you've got to be open-minded and not too fussy. you'll find some good buys and some good neighborhoods in areas that you might not think would be appetizing.
we're happy to help - keep the questions coming if you have others.
i concur - john & emily, your work history is critical in this situation. part-time employment is not sufficient to qualify you for a mortgage generally. also, as noted, emily's dad can be a non-occupying coborrower (if qualified), which would assist you in obtaining the mortgage.
frankly, though, i think you're better off finishing up your studies and beginning full-time work (at least one of you) before you get totally serious about purchasing. as eugene pointed out, your monthly tab is going to increase as soon as you begin owning. renting for the time being may be a better choice as it will allow you (we hope) to save a few extra dollars.
as pointed out, using student loan disbursements for living expenses is great while you're in school, but not considered a legitimate source of income for mortgage qualifications.
i also agree with you, john & emily, that your timing in looking at homes in this area is right. prices are, indeed, dropping in many segments; but particularly in the lower-priced market in ct. clearly, this depends on the specific are you're looking in, and you've got to be open-minded and not too fussy. you'll find some good buys and some good neighborhoods in areas that you might not think would be appetizing.
we're happy to help - keep the questions coming if you have others.
God help me, I put aside a whole afternoon to fguire this out.
Dora, I hope your afternoon was beneficial. What are you referring to...have you figured it all out?