Posted on: 30th Jun, 2011 12:25 pm
Hi, I was wondering when I would be able or what I would be able to get a mortage for. I currently work the fall and spring at shutdowns and earn an income of anywhere between 70000-80000. It wil keep going up year by year. My girlfriend works at the hosipital at call in and earns between 20800 to 41600. I only earned 30,000 for 2010 but only got hired on at this job in march 2011 and my girlfriend got hired on last month. We are only 22 so it wouldnt be very good if they checked a few years back. Both of are jobs are very steady with me knowing all my fall dates ahead of time. Not sure what here credit rating is but mine is 688 and our debts is 900/month between us. So would be get approved in a few years time to build our credit or now or.? Also how much would the mortage we would get approved for be? Any information would be greatly appreciated.
For a mortgage loan, you need to have established work history for 2 years. The lender will most likely average your income over the 2 year period. Your credit should be 640 for FHA and higher if you have large loan amount. Your lender will use up to 45% of the gross income. Keep in mind that if you write off many expenses, the lender will deduct these expenses from your income. For FHA you would need 3.5% down payment and 20% for conventional to avoid mortgage insurance. Good luck
Chris gave you an excellent answer. It's great that you have kept your expenses so low! The biggest question will be about your incomes - since it sounds like neither of you works a job that has a steady and predictable paycheck. The lender(s) might be skittish about this - how easy will it be to really prove that you will make what you say? As Chris said, it may be at least two years before they will trust this, so you may need to look into a cosigner.
FHA loans are allowable with cosigners, and that would allow you to make your purchase even with what might be termed to be a "sketchy" income stream.
As Chris noted, you only need a moderate amount of down payment to work with FHA; and that would eliminate any lengthy delays while you shore up your work histories.
As Chris noted, you only need a moderate amount of down payment to work with FHA; and that would eliminate any lengthy delays while you shore up your work histories.
