Posted on: 30th Mar, 2008 08:43 pm
Hi, I have a bunch of questions so I hope someone here might be able to help me.
Here's my situation: We live in NYC. Our lease is up in 2 months and we are looking to buy if we can before then. We currently pay $1800/month rent.
My husband has perfect credit. Maybe high 700s, or even around 800. Our W2's from the past 2 years show an income of 75K but my husband got a raise and his paystubs show him at an income of about $88,000 a year.
I have poor credit with a score around 600-610. No judgements, but items in collections from many years ago. Solid credit in the past two years except for one late payment when I lost track of the bills when my father passed away. But my paystubs only show me at about $18,000 a year so it may not be worth it to use my income on the loan.
I also have a letter from the NYC Board of Education verifying employment with them starting in September of this year at a salary of $45,000 in addition to my 18K. But I don't know if lenders will even look at this.
Anyhow, we saw a house today on a whim that we want to make an offer on. The owner needs to get out ASAP and the agent told me she'll accept an offer 35-40K less than the asking price, which is a really good deal for the area. We can get the house for $425-430K, maybe even less. But we only have $20,000 for the downpayment and closing costs. And this will basically wipe us out except for around 2K left.
I spoke to someone at Quicken Loans and asked them about FHA. They said that even though they raised loan limits in my area, they can't process them until early to mid-April, with no exact date.
So I'm not really sure what to do. Would my husband's income and credit alone be enough to qualify for a $410,000 mortgage? And if not, how bad would my score affect us?
And what about closing costs? Can I include them in the mortgage? Has anyone ever asked the seller to cover the costs?
I'm not really sure how to proceed from here. I want to make an offer in the next day or two and I don't even know where to begin to find a mortgage broker either.
I appreciate any insight or help anyone here can provide!
Here's my situation: We live in NYC. Our lease is up in 2 months and we are looking to buy if we can before then. We currently pay $1800/month rent.
My husband has perfect credit. Maybe high 700s, or even around 800. Our W2's from the past 2 years show an income of 75K but my husband got a raise and his paystubs show him at an income of about $88,000 a year.
I have poor credit with a score around 600-610. No judgements, but items in collections from many years ago. Solid credit in the past two years except for one late payment when I lost track of the bills when my father passed away. But my paystubs only show me at about $18,000 a year so it may not be worth it to use my income on the loan.
I also have a letter from the NYC Board of Education verifying employment with them starting in September of this year at a salary of $45,000 in addition to my 18K. But I don't know if lenders will even look at this.
Anyhow, we saw a house today on a whim that we want to make an offer on. The owner needs to get out ASAP and the agent told me she'll accept an offer 35-40K less than the asking price, which is a really good deal for the area. We can get the house for $425-430K, maybe even less. But we only have $20,000 for the downpayment and closing costs. And this will basically wipe us out except for around 2K left.
I spoke to someone at Quicken Loans and asked them about FHA. They said that even though they raised loan limits in my area, they can't process them until early to mid-April, with no exact date.
So I'm not really sure what to do. Would my husband's income and credit alone be enough to qualify for a $410,000 mortgage? And if not, how bad would my score affect us?
And what about closing costs? Can I include them in the mortgage? Has anyone ever asked the seller to cover the costs?
I'm not really sure how to proceed from here. I want to make an offer in the next day or two and I don't even know where to begin to find a mortgage broker either.
I appreciate any insight or help anyone here can provide!
Hi lostone,
Welcome to the forums.
Firs of all pull out your husband's credit report and verify the score. If it's around 700 then that's good enough for FHA loans and even other loans. As for your credit, well, it needs to be improved till you apply along with your husband.
I suggest that your husband should go for the loan as primary borrower and you as a co-borrower or you may simply have your name on title without having your name on the loan. In such case only your husband will be on the loan.
Your income will be checked through by lenders if you are on the loan. If you think you've found the right home, go ahead and talk to a few lenders, don't wait for a particular lender to offer you a loan because you don't know whether you'll fit into the criteria he requires. So, better shop around with some more lenders till you get the loan of your choice. You can even go for free consultation on the right loan with the lenders in this community.
"And what about closing costs? Can I include them in the mortgage? Has anyone ever asked the seller to cover the costs?"
The closing costs would range from 3-6% of the loan amount. And yes, some lenders will allow you to include them in the mortgage but you can expect a higher rate in such case. The seller can also pay for it provided you negotiate with him.
Take Care
Welcome to the forums.
Firs of all pull out your husband's credit report and verify the score. If it's around 700 then that's good enough for FHA loans and even other loans. As for your credit, well, it needs to be improved till you apply along with your husband.
I suggest that your husband should go for the loan as primary borrower and you as a co-borrower or you may simply have your name on title without having your name on the loan. In such case only your husband will be on the loan.
Your income will be checked through by lenders if you are on the loan. If you think you've found the right home, go ahead and talk to a few lenders, don't wait for a particular lender to offer you a loan because you don't know whether you'll fit into the criteria he requires. So, better shop around with some more lenders till you get the loan of your choice. You can even go for free consultation on the right loan with the lenders in this community.
"And what about closing costs? Can I include them in the mortgage? Has anyone ever asked the seller to cover the costs?"
The closing costs would range from 3-6% of the loan amount. And yes, some lenders will allow you to include them in the mortgage but you can expect a higher rate in such case. The seller can also pay for it provided you negotiate with him.
Take Care
His score is definitely in the high 700s to 800. No debt except for 2k on a credit card that we charge everything on and pay off in full monthly. Do you suggest we pay the balance in full and not charge anything at all for the next month?
Also, do we make an offer before we're preapproved? How long will it take me to find a loan?
And finally, based on online calculators, is doesn't seem that a salary of about 90K is enough to qualify for a $410K mortgage. For borrowers with perfect credit and no debt, do lenders typically allow for a higher % of income to go to housing expenses? I'm just worried we won't get approved for anything.
Also, do we make an offer before we're preapproved? How long will it take me to find a loan?
And finally, based on online calculators, is doesn't seem that a salary of about 90K is enough to qualify for a $410K mortgage. For borrowers with perfect credit and no debt, do lenders typically allow for a higher % of income to go to housing expenses? I'm just worried we won't get approved for anything.
Not sure how thing in NYC nowdays for home values but alot of lenders have slashed down their max LTV that they will accept on a home purchase. 410k is definately our of FHA reach for most counties and property types. Although hopefully this will change soon.
If your husband doesnt have any debt besides this future home there is a possibility he can qualify by himself. If you carry $1000+/mon on credit card/car loan debt I whould suggest looking at something cheaper.
Also you may want to see if seller can pay closing costs. This home will be pusshing your limits a bit and I whould think hard b4 getting it even if you can.
Find out the FHA limits for the county you want to buy in and look for a home in that range. You are more liokely to qulify and will need less of a downpayment.
If your husband doesnt have any debt besides this future home there is a possibility he can qualify by himself. If you carry $1000+/mon on credit card/car loan debt I whould suggest looking at something cheaper.
Also you may want to see if seller can pay closing costs. This home will be pusshing your limits a bit and I whould think hard b4 getting it even if you can.
Find out the FHA limits for the county you want to buy in and look for a home in that range. You are more liokely to qulify and will need less of a downpayment.
i know the fha loans here go up to 729K or something.
but i spoke to someone at countrywide today and they said the maximum loan we could qualify under his income is $360,000. you can't even get a shack for that amount here!
so now we're thinking of getting a co-op. do you happen to know if the lending limits for co-ops are the same as the regular fha loan limits? i know it's a different loan, 203n or something.
but i spoke to someone at countrywide today and they said the maximum loan we could qualify under his income is $360,000. you can't even get a shack for that amount here!
so now we're thinking of getting a co-op. do you happen to know if the lending limits for co-ops are the same as the regular fha loan limits? i know it's a different loan, 203n or something.
Hi lostone,
Welcome back.
Co-operative housing loans under 203(n) is a good option for you but the limits depends upon whether it single unit., two unit, 3 unit.
You can contact with HAD approved counselor. the toll free no is (800) 569-4287
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome back.
Co-operative housing loans under 203(n) is a good option for you but the limits depends upon whether it single unit., two unit, 3 unit.
You can contact with HAD approved counselor. the toll free no is (800) 569-4287
Feel free to ask if you have any further questions.
Best of luck,
Larry