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Advice-Not sure where to start

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ALD22
New Contributor

Advice-Not sure where to start

My Boyfriend and I would like to buy a home by the end of the year. Our financial situation has been a little rocky the past year and I just want to get some advice as to if it would be possible. 

 

He was laid off in April of 2016,  started work for another company in July, and was laid off again in December. He recently just started A new Job last week(same position as his original job he was laid off from in April of last year, just with the competitor). After he was laid off in April of last year he enrolled in school.

 

I will start a new job on June 5th, I was with my previous employer for 5 years. Same industry and title, just 20k a year salary increase. I will be cashing out my PERA which will allow me to pay off all of our credit cards only leaving our car payments monthly. We have students loans, but we are both currently in school so not paying on them yet. By the time we are ready to buy we will be able to save the 3.5% down payment and then some. 

 

I haven't pulled our mortgage scores yet, because I'm waiting until I pay off all of our cards(we had to use them while he was unemployed). We recently purchased a car and our FICO auto scores were 678/675/671 and 585/547/569. 

 

Looking to purchase around 450K

My income 85K plus 6K a year child support

His income 67K plus monthly bonuses

car payments 1600

I have a bankruptcy discharged 2/15 and some medical collections

 

Would our employment history be a huge problem for FHA? If we have no other monthly debt other than two car payments? Any advice is appreciated. Thank You! 

 

2 REPLIES 2
CaliforniaLoaner
Valued Member

Re: Advice-Not sure where to start

Hi ALD,

 

A few take aways I can see here:

 

1. Definitely get those credit scores over 600

2. You won't be able to use any of his bonus income since he hasn't been at his current job for at least 12 months, though that is probably not going to make or break you

3. Make sure you pay all the cards you're going to pay off at least 60 days before having your credit pulled for a mortgage. Otherwise you will have to paper trail everything, which will be a huge pain

4. What state are you looking to purchase in? With mortgage insurance and state taxes, your payment could possibly be a little higher than you're expecting. Always best to know up front Smiley Happy

Message 2 of 3
VALoanMaster
Valued Contributor

Re: Advice-Not sure where to start


@ALD22 wrote:

My Boyfriend and I would like to buy a home by the end of the year. Our financial situation has been a little rocky the past year and I just want to get some advice as to if it would be possible. 

 

He was laid off in April of 2016,  started work for another company in July, and was laid off again in December. He recently just started A new Job last week(same position as his original job he was laid off from in April of last year, just with the competitor). After he was laid off in April of last year he enrolled in school.

 

I will start a new job on June 5th, I was with my previous employer for 5 years. Same industry and title, just 20k a year salary increase. I will be cashing out my PERA which will allow me to pay off all of our credit cards only leaving our car payments monthly. We have students loans, but we are both currently in school so not paying on them yet. By the time we are ready to buy we will be able to save the 3.5% down payment and then some. 

 

I haven't pulled our mortgage scores yet, because I'm waiting until I pay off all of our cards(we had to use them while he was unemployed). We recently purchased a car and our FICO auto scores were 678/675/671 and 585/547/569. 

 

Looking to purchase around 450K

My income 85K plus 6K a year child support

His income 67K plus monthly bonuses

car payments 1600

I have a bankruptcy discharged 2/15 and some medical collections

 

Would our employment history be a huge problem for FHA? If we have no other monthly debt other than two car payments? Any advice is appreciated. Thank You! 

 


Hi ALD22,

Your employment history will not be a problem but it's hard to say if your boyfriend's history will be an issue or not. The good news is he has some time to re-establish his work history since you're looking at buying by the end of the year.

 

The first thing you need to do is get the scores that are in the 500s up to at least 620+. To do this you really need to have a competent lender review the credit report to give you some guidance on what to do.

 

We need to check the FHA county loan limit to see if $450,000 is an option.

 

Your child support can be included as long as it will continue for at least 3 years. 

 

Did you include a mortgage in your bankruptcy?

 

Try to get the medical collections deleted.

 

 

 

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 3 of 3
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