Posted on: 12th Jun, 2009 07:50 pm
Hi, I am in need of advice. I got an accepted offer on a house at $131,000. I am able to provide 20% of a down payment through me and my gift avaitors. I am only 25 years old and I have a credit score in the 750's. The problem is that I am only able to get temp jobs due to the economy ranging from 10 - 14$ / hr. A credit union I applied for denied my application just two hours before commitment was due and it was because I had a temp job. I believe that if I would rent, I would be paying more per month in rent than with this loan and not getting any equity. I know that I can afford this loan becuase my significant other will be moving in, but can't put his name down because he has a credit score which I think is in the 400's and he is on a fixed income. Would FHA loan be the way to go and have my mom co-sign? She makes over 50k a year and I'm assuming good credit score since her credit card limit is over $10,000. Fortanately, I do not have any college loans nor car loans as they have been paid off and I would be getting the $8000 stimulus since I am a first time home buyer.
Mike Matuszewsk
Welcome to the forum
Congratulation on takign this big step at your early age.
Since you are lookign to make 20% down payment, you do nto need to go with FHA loan. Normally people who want to do little down payment will go for FHA loan.
Probably you can get this house by asking your mom to be the main borrowere and you co-sign with her. Later she can give you a quite claim deed and you can continue to make payment.
You need to make sure that you keep making payment monthly as agreed or any missed ayments would affect not only your credit score but also your mothers.
Good luck and feel free to ask
Realgeni
-Good credit is easy to achieve, as long as you use it responsibly
Welcome to the forum
Congratulation on takign this big step at your early age.
Since you are lookign to make 20% down payment, you do nto need to go with FHA loan. Normally people who want to do little down payment will go for FHA loan.
Probably you can get this house by asking your mom to be the main borrowere and you co-sign with her. Later she can give you a quite claim deed and you can continue to make payment.
You need to make sure that you keep making payment monthly as agreed or any missed ayments would affect not only your credit score but also your mothers.
Good luck and feel free to ask
Realgeni
-Good credit is easy to achieve, as long as you use it responsibly
I tried getting my mom's name when I applied for the loan at the credit union, but they said that if she's not living there, she can't sign the loan, but i'm not sure if they allow borrowere's. FHA was the second suggestion I heard from the morgage broker unless my temp service is willing to write a letter stating that they have plans on keeping me there for a year which I don't think it will happen.
FHA does allow for non-occupying co borrowers. From what I have read it seems that your income cannot really be used at all because there is no guarantee that work will continue for you. If you're mom is willing to co-sign, she is more than likely going to have to be able to handle her debt as well as yours based on her income if your income cannot be used. Contact a lender within our community and see what you are able to accomplish. Also, if the 20% down payment wipes out your assets please consider a lesser down payment and more cash in the bank for reserves. I hope this helps...
I would be receiving 17,000 from gifts, so 9,000 would come from me. Yes, it would wipe most of my savings (I would have about 2,000 left over) but my significant other would be helping me pay it off. As far as I'm aware, my mom is not in debt at all. Would prefer to have direct w/d for loan every month.
What would my mother need to provide if she would co-sign?
What would my mother need to provide if she would co-sign?
Mike
I have to be honest with you.....walk away from this deal. You don't qualify. Think about your job situation. You are doing temp work. What happens if you are out of work for a while and your significant other leaves? You would foreclose and would be left with nothing. You would also lose the $17k in gift monies you received. It happens all of the time, just read the posts.
My suggestion to you is find steady work and save a little more. I understand that your home payment may be less than your rent but you also have other expenses that you may not be considering.
In addition, co-signing is not a good idea. Your mother's credit history would be tied to your ability to make on time payments EVERY MONTH.
I have to be honest with you.....walk away from this deal. You don't qualify. Think about your job situation. You are doing temp work. What happens if you are out of work for a while and your significant other leaves? You would foreclose and would be left with nothing. You would also lose the $17k in gift monies you received. It happens all of the time, just read the posts.
My suggestion to you is find steady work and save a little more. I understand that your home payment may be less than your rent but you also have other expenses that you may not be considering.
In addition, co-signing is not a good idea. Your mother's credit history would be tied to your ability to make on time payments EVERY MONTH.
Thank You Eric. I have to agree that I do not believe this is the right time for you to purchase a home. First, land a solid job and by then you should still have a sizeable down payment as well as a job that will gurantee you income. It is not worth the risk to both your and your mothers credit, if you were to lose this job and have to search for another in this economic environment. I hope this helps...
Keep in mind that if you try to get your mother to buy this house for you and if she already owns a home (or has purchased one in the last 3 years) then you will NOT qualify for the first-time buyers' tax credit. Looks like you might need the $8K credit to replenish your savings, so keep that in mind.
Keep in mind that if you try to get your mother to buy this house for you and if she already owns a home (or has purchased one in the last 3 years) then you will NOT qualify for the first-time buyers' tax credit. Looks like you might need the $8K credit to replenish your savings, so keep that in mind.