Posted on: 10th Oct, 2010 08:17 pm
My husband and I both work in the science field as contract employees through Kelly Scientific. We both receive W-2s from Kelly each year, and he has an offer letter from Kelly stating annual salary (he is a salaried employee NOT hourly).
My husband started his contract position about one month ago and before that was employed for almost 3 years as a postdoc. I started my contract position in April 2010 and before that was employed as a "permanent" employee in a right to work state for just over 2 years.
We are trying to get a loan - my husband alone qualifies for the amount we would need - his credit score is over 800, and we have 20% to put down on the house. However, because he is a contract employee, we do not qualify for a conventional loan (or so we are told) because it's a Fannie Mae/Freddie Mac policy.
We are fortunate enough to have wealthy family members willing to cosign, but as they would be non-occupant cosigners, we would only qualify for an FHA loan at that point and not a conventional loan. These family members have also mentioned they'd be willing to guarantee the loan until my husband becomes an actual employee of the company he is currently contracting with.
This seems ludicrous. A "permanent" job doesn't guarantee anything in a right to work state. We would not be looking for a house if we weren't pretty confident both of our jobs are pretty secure, regardless of the fact that they are contracted through a third party company (Kelly Sci).
Is there a way around this insanity or are we stuck as perpetual renters until one or the other of us gets a "real" job?
My husband started his contract position about one month ago and before that was employed for almost 3 years as a postdoc. I started my contract position in April 2010 and before that was employed as a "permanent" employee in a right to work state for just over 2 years.
We are trying to get a loan - my husband alone qualifies for the amount we would need - his credit score is over 800, and we have 20% to put down on the house. However, because he is a contract employee, we do not qualify for a conventional loan (or so we are told) because it's a Fannie Mae/Freddie Mac policy.
We are fortunate enough to have wealthy family members willing to cosign, but as they would be non-occupant cosigners, we would only qualify for an FHA loan at that point and not a conventional loan. These family members have also mentioned they'd be willing to guarantee the loan until my husband becomes an actual employee of the company he is currently contracting with.
This seems ludicrous. A "permanent" job doesn't guarantee anything in a right to work state. We would not be looking for a house if we weren't pretty confident both of our jobs are pretty secure, regardless of the fact that they are contracted through a third party company (Kelly Sci).
Is there a way around this insanity or are we stuck as perpetual renters until one or the other of us gets a "real" job?
Hi aurandes,
There is hardly anything that you can do in this regard. As your husband is a contractual employee at present, he won't be able to get a mortgage. In my opinion, as your relatives are ready to co-sign for the mortgage, you should go for an FHA loan to buy your property.
Thanks,
Jerry
There is hardly anything that you can do in this regard. As your husband is a contractual employee at present, he won't be able to get a mortgage. In my opinion, as your relatives are ready to co-sign for the mortgage, you should go for an FHA loan to buy your property.
Thanks,
Jerry
FHA loan isn't a bad loan. Why are you so against getting an FHA loan. Rates are in the high 3's low 4's.
