Posted on: 30th Mar, 2010 08:27 am
My boyfriend and I have lived together for 3 yrs, we both have steady full-time jobs. His yearly income is $57,000. My yearly income is $33,200. He has a 401(K) currently valued at $13,000, but he is paying back a loan of $10,000 he took against his 401(K) to pay off a few bills so the total would actually be $23K. He owns a boat, probably around $5-6K in value, outright. We are currently renting. His credit score is good. Mine is absolutely horrible. We have about $7,500 in cash reserves (our checking account, which is joint). Our debts are $263 for a car loan, $111 for another car loan and about $50 for a credit card. That's all.
We are looking at a short sale property nearby being advertised at $248,900. It's a great price for the area we live and well below other props. I know that if we both applied we would be denied due solely to my credit. If he applies, he would not be successful in obtaining a mortgage for that amount because of his income. Question: can my income be used to qualify, since I contribute to paying household expenses, without being used as a co-borrower? He is a first time buyer, btw.
We are looking at a short sale property nearby being advertised at $248,900. It's a great price for the area we live and well below other props. I know that if we both applied we would be denied due solely to my credit. If he applies, he would not be successful in obtaining a mortgage for that amount because of his income. Question: can my income be used to qualify, since I contribute to paying household expenses, without being used as a co-borrower? He is a first time buyer, btw.
If the debts of $263 and $111 and $50 are in both your names, by himself your boyfriend would qualify for an FHA mortgage of about $218,000. That would be a 45% debt ratio if property taxes were about $3,600.
If you can find a relative coborrower, your boyfriend does not need a lot of additional income to qualify for a higher mortgage. The property is certainly affordable with your income, but, your income can not be used for mortgage qualification due to your credit.
If you can find a relative coborrower, your boyfriend does not need a lot of additional income to qualify for a higher mortgage. The property is certainly affordable with your income, but, your income can not be used for mortgage qualification due to your credit.
Unfortunately, both cars and the credit card are in his name. Prop. taxes are $900 a year (looked it up on our county's tax records). The property is currently valued at $257K. Prop. taxes include a $85/quarter fee paid to the local volunteer fire department. We bank with our state's employees credit union, as my boyfriend is an employee of a public utility entity (though not affiliated with the state or locality).
I'm not sure if his parents would be willing or able to co-sign. Both are retired, on VA, social security and disability. They have stellar credit in the 800 rang, but their incomes are very tiny and, as I mentioned, I am not sure they'd want to co-sign.
I guess we'll have to resign ourselves to renting for a few more years.
Hypothetical: if we were to get married tomorrow, could my income be included as a non-borrower spouse?
I'm not sure if his parents would be willing or able to co-sign. Both are retired, on VA, social security and disability. They have stellar credit in the 800 rang, but their incomes are very tiny and, as I mentioned, I am not sure they'd want to co-sign.
I guess we'll have to resign ourselves to renting for a few more years.
Hypothetical: if we were to get married tomorrow, could my income be included as a non-borrower spouse?
With taxes so low, I can add another $200 a month to the calculation and I figure you should be ok for a mortgage up to $254,000 and that is with a 45% debt ratio.
It may be possible to get an FHA mortgage even at a little higher debt ratio. That is detrermined only by automated underwrting, however, looks to me like you should be ok.
At full price you need at least $8,711 for the minimum 3.50% down payment. Figure maybe $8,000 for closing costs and prepaids. Could be a little more or less---if the property is in NY you will have a mortgage tax and that will make it more. It appears you have enough for down payment not costs. Perhaps get a gift of $8,000 and pay back from first time homebuyer credit or get a gift you do not pay back and/or as part of the offer ask the seller to contribute back $8,000 towerd your closing costs.
This is a short sale. You must close by June 30, 2010 to get the $8,000 tax credit. The short sale could take longer than that for the existing lender to approve.
It may be possible to get an FHA mortgage even at a little higher debt ratio. That is detrermined only by automated underwrting, however, looks to me like you should be ok.
At full price you need at least $8,711 for the minimum 3.50% down payment. Figure maybe $8,000 for closing costs and prepaids. Could be a little more or less---if the property is in NY you will have a mortgage tax and that will make it more. It appears you have enough for down payment not costs. Perhaps get a gift of $8,000 and pay back from first time homebuyer credit or get a gift you do not pay back and/or as part of the offer ask the seller to contribute back $8,000 towerd your closing costs.
This is a short sale. You must close by June 30, 2010 to get the $8,000 tax credit. The short sale could take longer than that for the existing lender to approve.
The property is in NC. Would our marriage make a difference as to whether we could use my income even if I chose not to be the borrower, as NC is not a community property state?
Thanks for your help!
Thanks for your help!
I am not licensed in NC and I do not claim to know the laws ther, however, as you note it is not a community property state and I am pretty sure the marriage does not adversely affect anything.
Kind of interesting. At the beginning of your question, he is a boyfriend and at the end, all on the same day, you are married. I'm guessing you may be getting married sometime soon.
Kind of interesting. At the beginning of your question, he is a boyfriend and at the end, all on the same day, you are married. I'm guessing you may be getting married sometime soon.