Posted on: 17th May, 2009 05:22 pm
Hello. I'm a first-time home buyer/shopper, and have questions regarding co-signing.
My situation is that I'm a self-employed private music teacher. My income last year was small ($6-7000) as I was just starting, but this year will likely be far higher ($18-19000). Naturally, I cannot prove this beyond producing teaching schedules and projected income. I will also have at least an extra $3-4000 in total income for a composing job (much of that received already).
I'm 28, and I have a great but very-limited credit history (less than one year). I have a local bank that I deal with and have spoken with the VP regarding credit cards, etc. My father and I are shopping for a less-than-$55,000 home for me, and having pretty good luck. He is willing to co-sign (has a great job and near-perfect credit) for me, but he thinks I might be able to get a loan on my own. I will easily be able to put $5-6000 down on the home.
What I'd like to know is, do I have basically no chance of qualifying for a loan on my own (this is what *I* believe), or are there situations where someone in this kind of position would be considered? Would an FHA loan improve my chances a lot? I'm convinced he'd have to co-sign for me, but I of course hope that is not the case (we're both well aware of the risks involved). Thank you so much for your time.
-Dan
My situation is that I'm a self-employed private music teacher. My income last year was small ($6-7000) as I was just starting, but this year will likely be far higher ($18-19000). Naturally, I cannot prove this beyond producing teaching schedules and projected income. I will also have at least an extra $3-4000 in total income for a composing job (much of that received already).
I'm 28, and I have a great but very-limited credit history (less than one year). I have a local bank that I deal with and have spoken with the VP regarding credit cards, etc. My father and I are shopping for a less-than-$55,000 home for me, and having pretty good luck. He is willing to co-sign (has a great job and near-perfect credit) for me, but he thinks I might be able to get a loan on my own. I will easily be able to put $5-6000 down on the home.
What I'd like to know is, do I have basically no chance of qualifying for a loan on my own (this is what *I* believe), or are there situations where someone in this kind of position would be considered? Would an FHA loan improve my chances a lot? I'm convinced he'd have to co-sign for me, but I of course hope that is not the case (we're both well aware of the risks involved). Thank you so much for your time.
-Dan
welcome to the forums vh dan,
i don't believe and fha will work for your case because they tend to be very picky about seeing verification of income. and they also like to see atleast 2 years of employment with the same employer as well. there is a slight chance that you may be able to find a loan but you will probably pay through the roof in fees and a high interest rate.
is the house you are looking at the house you really need or could it wait another year or two.
atleast if you have your dad co-sign then you would probably have enough income verification and better credit to refinance the loan in just your name.
best of luck
i don't believe and fha will work for your case because they tend to be very picky about seeing verification of income. and they also like to see atleast 2 years of employment with the same employer as well. there is a slight chance that you may be able to find a loan but you will probably pay through the roof in fees and a high interest rate.
is the house you are looking at the house you really need or could it wait another year or two.
atleast if you have your dad co-sign then you would probably have enough income verification and better credit to refinance the loan in just your name.
best of luck
Thanks for your reply. I can definitely wait several more months, but I have serious issues regarding going back to apartment life (noise level due to being a composer and musician, paying a lot more per month to rent in this area and likely eating into savings, my aging, haha, etc) once I finally move back out of here (long story there). I just read a few articles about self-employed and mortgages, and a few of them mentioned a 20% down-payment, which will actually be quite doable for me this year. Would that likely help me to secure a *typical* mortgage with rates that aren't ridiculous, or do you think I'd still be looking at a "need co-signer or pay ridiculous rates" situation?
