Posted on: 14th Jul, 2010 10:15 pm
Hi!
My mother-in-law and I have applied for an FHA loan that is going to the underwriter this week. Our mortgage guy's assistant got me nervous and now I can't sleep!
My husband and I found our dream house ($231,000 mortgage) in Minnesota, but his credit is terrible. Unfortunately, his income supports us both, but his credit is too bad to be on the mortgage.
My credit score is 698, but my income is not permanent (temp work). My mother-in-law's credit score is 792 and her income is $110,000 annually. Our combined monthly debt including the potential $1700 mortgage payment is under $2200 as she and I have under $3000 in credit card debt and only one car payment (mine are under my husband's credit). Our DTI ratios are well below the FHA requirements.
Needless to say, the broker's assistant scared me by saying that since I do not currently have a steady income, that we may not get approved.
Can this be, despite the mom-in-law's income? AHH!!
I have been employed consistently for over 10 years, I am only unemployed currently because my husband and I relocated out of state for his job. I am still looking, though my temp job is likely turning permanent.
Any words of encouragement? How strict are the FHA lenders regarding each co-signer's income?
Thanks for helping to put me at ease or helping me to move on. . .
My mother-in-law and I have applied for an FHA loan that is going to the underwriter this week. Our mortgage guy's assistant got me nervous and now I can't sleep!
My husband and I found our dream house ($231,000 mortgage) in Minnesota, but his credit is terrible. Unfortunately, his income supports us both, but his credit is too bad to be on the mortgage.
My credit score is 698, but my income is not permanent (temp work). My mother-in-law's credit score is 792 and her income is $110,000 annually. Our combined monthly debt including the potential $1700 mortgage payment is under $2200 as she and I have under $3000 in credit card debt and only one car payment (mine are under my husband's credit). Our DTI ratios are well below the FHA requirements.
Needless to say, the broker's assistant scared me by saying that since I do not currently have a steady income, that we may not get approved.
Can this be, despite the mom-in-law's income? AHH!!
I have been employed consistently for over 10 years, I am only unemployed currently because my husband and I relocated out of state for his job. I am still looking, though my temp job is likely turning permanent.
Any words of encouragement? How strict are the FHA lenders regarding each co-signer's income?
Thanks for helping to put me at ease or helping me to move on. . .
As you're not employed presently, you may not be able to qualify for a loan. However, as your mother-in-law and husband have a good income, they can get a mortgage in their name to buy the property. Though your husband's credit is not good, your mother-in-law has a good credit score. This will help your husband and her to qualify for a loan.
Why in the world is this being discussed as an issue just prior to underwriting? Your loan officer is a bonehead if he failed to clear this up initially. That's a conversation that should have taken place before you even completed a loan application.
Pick up the phone right away and be in contact with the loan officer (not the assistant) and verify that your job situation was made clear to the underwriter early on and passed muster.
Pick up the phone right away and be in contact with the loan officer (not the assistant) and verify that your job situation was made clear to the underwriter early on and passed muster.
Hi, George-
That is what I don't understand. I'm hoping the assistant is out of the loop. I'll call our loan officer. My husband and I distinctly remember telling him that my job is temporary in our two hour initial meeting with him. He has had my paystubs which indicate it's temp work since before then. If I call him, and he says he DIDN'T know, what can I do? I don't think anything except regret not being even more direct than I usually am.
Hi, Niicss-
Unfortunately, my husband's credit does not even qualify for him to be on the loan. Oh, how I wish it was better, but this is what we've got.
I guess buying a home isn't in our future right now.
Thanks for both of your help.
That is what I don't understand. I'm hoping the assistant is out of the loop. I'll call our loan officer. My husband and I distinctly remember telling him that my job is temporary in our two hour initial meeting with him. He has had my paystubs which indicate it's temp work since before then. If I call him, and he says he DIDN'T know, what can I do? I don't think anything except regret not being even more direct than I usually am.
Hi, Niicss-
Unfortunately, my husband's credit does not even qualify for him to be on the loan. Oh, how I wish it was better, but this is what we've got.
I guess buying a home isn't in our future right now.
Thanks for both of your help.
Don't quit now, Hilary. When you query the loan officer, get a straight answer any way you can. If he obfuscates or denies having had the correct information to begin with, insist that you have the opportunity to speak with a supervisor/manager/sales manager...anyone who has responsibility above and beyond the origination of the loan itself...someone who can speak directly to the issue frankly and affirmatively. That is the least that the company you're working with can do for you.
If they've not run this scenario by the underwriter previously, there's not much you'll be able to do except plead your case with all your vigor. How it gets considered is anyone's guess, though it's not a scenario that would necessarily be looked at favorably under most circumstances.
Perhaps your mother in law's involvement in this deal will be sufficient to overlook what might otherwise be seen as a negative.
If they've not run this scenario by the underwriter previously, there's not much you'll be able to do except plead your case with all your vigor. How it gets considered is anyone's guess, though it's not a scenario that would necessarily be looked at favorably under most circumstances.
Perhaps your mother in law's involvement in this deal will be sufficient to overlook what might otherwise be seen as a negative.
FHA does allow a true blending of an acceptable co-borrowers income,
assets and liabilities. So while your income might help, you need to
be aware of your liabilities as they are blended into both your
housing and total debt to income ratios. It might well be an issue that
you are currently a temp as the lenders need to see a strong probability
of continued employment. But as George hopefully your mother in law's participation will be help to overlook this.
assets and liabilities. So while your income might help, you need to
be aware of your liabilities as they are blended into both your
housing and total debt to income ratios. It might well be an issue that
you are currently a temp as the lenders need to see a strong probability
of continued employment. But as George hopefully your mother in law's participation will be help to overlook this.