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Can my wife buy a home?

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nismo350z
Member

Can my wife buy a home?

So my wife wants to buy a house. We just got back from a trip to Spain and our lease is going to be up in 2 months. It's kind of a spur of a moment decision because we are pretty tired of renting and we can afford to buy a house. So here are the details:

 

1. Wife is a Nurse and has only been working for a year

2. She makes around 100k and its possible to make 120k-130k if she picks up shifts

3. She owns a timeshare that has 2 loans. 12k for 10 years at $220 a month and 3k for 18 months at $150 a month (estimates but around this)

4. About 1k in credit card debt with 60k+ available limit

5. Credit score in the 720+ area

6. We were looking at putting 3.5 - 5% down on a 400k-450k home. 

 

I wont be on the loan because I had a BK and short sale a few years back. My credit is in the same range and I make around 100k, but I have way too many things on my profile so getting the best interest rate is what we want. Any help or advice would be great. Thanks

Message 1 of 4
3 REPLIES 3
kc0039
Established Contributor

Re: Can my wife buy a home?


@nismo350z wrote:

So my wife wants to buy a house. We just got back from a trip to Spain and our lease is going to be up in 2 months. It's kind of a spur of a moment decision because we are pretty tired of renting and we can afford to buy a house. So here are the details:

 

1. Wife is a Nurse and has only been working for a year Previous employment? If it's the same industry, maybe we can use OT

2. She makes around 100k and its possible to make 120k-130k if she picks up shifts Is this with OT? See above reply. Can you break down base, OT, shift differential, etc

3. She owns a timeshare that has 2 loans. 12k for 10 years at $220 a month and 3k for 18 months at $150 a month (estimates but around this)

4. About 1k in credit card debt with 60k+ available limit Payments? What are the monthly minimum payments?

5. Credit score in the 720+ area

6. We were looking at putting 3.5 - 5% down on a 400k-450k home. Depending on where you are, you may be in a high conforming loan limit area or you're in a jumbo mortgage territory if you put 5% down. Both have higher interest rates than conforming mortgages.If you're not in a high conforming loan limit area, which you can find with a quick google search, I suggest putting down $25,900 which is 5.8% down to go down to regular loan limits with better rates. Keep in mind, this will be for a $450k home.

 

I wont be on the loan because I had a BK and short sale a few years back. My credit is in the same range and I make around 100k, but I have way too many things on my profile so getting the best interest rate is what we want. Any help or advice would be great. Thanks What kind of BK? When was the short sale completed? BK is a 4 year wait for Chapter 7 and Short sale a 4 year wait from completion as well.


 

Licensed in IL
Message 2 of 4
nismo350z
Member

Re: Can my wife buy a home?


@kc0039 wrote:

@nismo350z wrote:

So my wife wants to buy a house. We just got back from a trip to Spain and our lease is going to be up in 2 months. It's kind of a spur of a moment decision because we are pretty tired of renting and we can afford to buy a house. So here are the details:

 

1. Wife is a Nurse and has only been working for a year Previous employment? If it's the same industry, maybe we can use OT She graduated college and got this job. So same industry. Before that she was a teacher aide for Anatomy & Physiology during college for about 2 years before going through the RN program.

2. She makes around 100k and its possible to make 120k-130k if she picks up shifts Is this with OT? See above reply. Can you break down base, OT, shift differential, etc This is with OT. Base salary is 100k with shift differential since she works nights.

3. She owns a timeshare that has 2 loans. 12k for 10 years at $220 a month and 3k for 18 months at $150 a month (estimates but around this)

4. About 1k in credit card debt with 60k+ available limit Payments? What are the monthly minimum payments? Around $85

5. Credit score in the 720+ area

6. We were looking at putting 3.5 - 5% down on a 400k-450k home. Depending on where you are, you may be in a high conforming loan limit area or you're in a jumbo mortgage territory if you put 5% down. Both have higher interest rates than conforming mortgages.If you're not in a high conforming loan limit area, which you can find with a quick google search, I suggest putting down $25,900 which is 5.8% down to go down to regular loan limits with better rates. Keep in mind, this will be for a $450k home. We are looking for a home in the 95337 area. about an hour from the bay area in northern california. Would FHA be an option?

 

I wont be on the loan because I had a BK and short sale a few years back. My credit is in the same range and I make around 100k, but I have way too many things on my profile so getting the best interest rate is what we want. Any help or advice would be great. Thanks What kind of BK? When was the short sale completed? BK is a 4 year wait for Chapter 7 and Short sale a 4 year wait from completion as well. Chpt 7 bk in 2013. 2008 for short sale. I have 2 auto loans, student loan and 2 personal loans. I pay for all general bills (rent, cars, auto ins, phone bills, cable, water & electric) I will be helping paying half the rent once we buy the house. My 100k pay is with bonus and OT. My general salary would be 86k. I also do some contracting work on the side and sales on ebay and comic collectors website, so paper trails for all my weird transactions would be a pain to deal with.


 


 

Message 3 of 4
ShanetheMortgageMan
Super Contributor

Re: Can my wife buy a home?

The FHA loan limit is $362,250 in San Joaquin County.  In Solano it goes up to $431,250, Contra Costa it's $636,150, Sacramento it's $488,750, and Stanislaus it's $299,000.  You can go to https://entp.hud.gov/idapp/html/hicostlook.cfm and type in the county to see the county FHA loan limit.  The Fannie/Freddie county loan limit "floor" in all counties is $424,100, but in high-cost counties will be higher (you can also look it up on that same website, it almost always matches the FHA loan limit if the FHA loan limit is higher than $424,100).

 

With your wife's income alone, it appears she'd be OK to purchase a home in your price range using conventional financing.  With her scores, conventional would likely be the better route to take as the PMI will be cheaper and it'll also fall off (rather than for the life of the loan, like it would be on FHA with less than 10% down).  You can also do a 1st/2nd mortgage combo loan, which is a 1st mortgage at 80% and the 2nd mortgage for the remaining 15%... this will avoid PMI but will make your blended interest rate (the average of the 1st/2nd mortgage rates together) higher than if you just opted for 1 loan at 95%.

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