Posted on: 24th Feb, 2009 11:52 pm
Hello Everyone.
I am trying to get out of renting but there is a big problem. My employment/income history.
I work for a painting company that does not file taxes :oops: , I have worked with them for afew years now. So I have no way to prove income or employment history. My credit is not great either 638ex , 623eq , and 539tu.
BUT *queue drumroll*
My mother has agreed to cosign with me for a loan.
She is retired however. She is a x-banker and receives some kind of retirement/pension.
The loan only needs to be for ~$50-75k , in Memphis homes are cheap compared to what I see in other states , and also I don't mind getting a foreclosure as I have construction experience and could do some repairs on my own.
I need a FHA loan , bc I don't have much of a downpayment.
Now for my questions.
Can I use my mothers retirement/pension income to qualify me for a FHA loan?
Is it even possible for me to get a loan given my situation?
Am I able to use money from the home loan for other things? Like if I need to get appliances/furniture for the home
I am trying to get out of renting but there is a big problem. My employment/income history.
I work for a painting company that does not file taxes :oops: , I have worked with them for afew years now. So I have no way to prove income or employment history. My credit is not great either 638ex , 623eq , and 539tu.
BUT *queue drumroll*
My mother has agreed to cosign with me for a loan.
She is retired however. She is a x-banker and receives some kind of retirement/pension.
The loan only needs to be for ~$50-75k , in Memphis homes are cheap compared to what I see in other states , and also I don't mind getting a foreclosure as I have construction experience and could do some repairs on my own.
I need a FHA loan , bc I don't have much of a downpayment.
Now for my questions.
Can I use my mothers retirement/pension income to qualify me for a FHA loan?
Is it even possible for me to get a loan given my situation?
Am I able to use money from the home loan for other things? Like if I need to get appliances/furniture for the home
Hi GrenDeL,
If your mother has a guaranteed pension and Social Security, then she probably can co-sign for you. But again it will depend upon the lender whether he will accept her as the cosigner or not. If you get a FHA loan and if you use it to buy other things, then you should inform the lender beforehand.
Thanks.
If your mother has a guaranteed pension and Social Security, then she probably can co-sign for you. But again it will depend upon the lender whether he will accept her as the cosigner or not. If you get a FHA loan and if you use it to buy other things, then you should inform the lender beforehand.
Thanks.
I spoke with her today for more info , she says she has a IRA which is in stocks and bonds.
first of all, with no verifiable income, you're not going to be approved for a loan. you didn't say whether Mom has her own home or not. that's critical. if she is already a homeowner, you're going to have even more difficulty. although fha loans will "blend" the overall income of a borrower and a non-occupant coborrower, they'll be blending her retirement income with your zero - not a very pleasant thought. you may not use her income as your own. that's a no-brainer.
no you may not use loan proceeds for anything other than the purchase of the home. it doesn't matter what you tell the lender; they won't do it regardless.
i'd suggest you find a new employer who not only pays you a reasonable wage, but one who actually files their own taxes so you can do your own. as for your credit scores, they are certainly good enough. it's just your income situation that is a challenge.
no you may not use loan proceeds for anything other than the purchase of the home. it doesn't matter what you tell the lender; they won't do it regardless.
i'd suggest you find a new employer who not only pays you a reasonable wage, but one who actually files their own taxes so you can do your own. as for your credit scores, they are certainly good enough. it's just your income situation that is a challenge.
You can be qualified to purchase a home using the income of a non-occupying co-borrower on an FHA loan, however her income has to be more than enough to cover her expenses and yours. So the answer to your question depends on how much her regular monthly income is and what both of your expenses total.
The real fix to your dilemma would be to file taxes. The problem here isn't that your employer doesn't file taxes, the problem here is that you didn't. All income that you receive should be reported to the IRS and you should be paying taxes on it. Regardless of whether your company doesn't pay you correctly by W-2 or at least 1099, you should be filing a Schedule C and paying taxes on the income that you received. You could go back and file (and pay) 2007 and 2008 taxes on the income that you received and your problem would be solved.
To answer your other question, you can get an FHA 203(k) loan that give you extra money to cover certain repairs. It could also cover appliances. It could not cover furniture.
Hope this helps!
[Link deleted as per forum rules. Thanks.]
The real fix to your dilemma would be to file taxes. The problem here isn't that your employer doesn't file taxes, the problem here is that you didn't. All income that you receive should be reported to the IRS and you should be paying taxes on it. Regardless of whether your company doesn't pay you correctly by W-2 or at least 1099, you should be filing a Schedule C and paying taxes on the income that you received. You could go back and file (and pay) 2007 and 2008 taxes on the income that you received and your problem would be solved.
To answer your other question, you can get an FHA 203(k) loan that give you extra money to cover certain repairs. It could also cover appliances. It could not cover furniture.
Hope this helps!
[Link deleted as per forum rules. Thanks.]
Thanks for the info guys.
I emailed acouple of lenders in my area giving my scenario and asking if they could help out.
Waiting on replies.
I emailed acouple of lenders in my area giving my scenario and asking if they could help out.
Waiting on replies.