Posted on: 18th Apr, 2007 04:58 am
Both me and my partner are 18 and renting a house for the last 1 year at $1200 per month. I being a full time student and my partner earns 19,000. we are just wondering if we could qualify for a mortgage somewhere around 120,000 for a 30 year. We do not have any savings as such so that we can offer a deposit or down payment.
Welcome Lewi,
There are special packages of home loans offered to students. But not all lenders will provide them. Moreover, you being a student may have to make your partner either a cosigner or a co-borrower to get the mortgage.
There are special packages of home loans offered to students. But not all lenders will provide them. Moreover, you being a student may have to make your partner either a cosigner or a co-borrower to get the mortgage.
Lewi, I would say you wait for some more time before deciding about taking a mortgage. Right now rates will be higher for you since your income is low and also don't have much of savings to use for down payment.
I have to ask you about the kind of other debts you have and the total on those debts, by which we can know whether you will be able to qualify for a mortgage or not. Also tell us about your and your partner's credit score, as that is one important part which lenders will look at. How much you will be able to spend for closing costs? How long your partner has been employed now? Would you be able to afford the monthly payments? And why are you looking for a 30 year loan, how long would you stay in this house before shifting? If you do plan to move out within 5-6 years then arm can be an option to choose. But you need to check the rates on such mortgages with rates on fixed ones.
Do not think I am asking too many questions as these are the question any lender or broker will be asking you when you will approach them for a loan.
David
Do not think I am asking too many questions as these are the question any lender or broker will be asking you when you will approach them for a loan.
David
Thanks for all your replies. As to what David has asked me:
My partner's score is 680 and mine, well i need to check that. I haven't been dealing with too many credit except for a student loan which i have paid a year ago. But I have heard that FHA loan does not require a credit score to be the primary factor, so is there FHA loans available for students like me? Currently we have not thought of moving out, not at least within the next 10 years.
My partner has been employed for the past 2 years. He runs a business actually.
My partner's score is 680 and mine, well i need to check that. I haven't been dealing with too many credit except for a student loan which i have paid a year ago. But I have heard that FHA loan does not require a credit score to be the primary factor, so is there FHA loans available for students like me? Currently we have not thought of moving out, not at least within the next 10 years.
My partner has been employed for the past 2 years. He runs a business actually.