Do we qualify for any type of loan? Unusual scenario.

[surfbh]

My wife and I are both union electricians. We travel the U.S. to where the $$$ is. Jobs often only last for 2-6 months, sometimes more,sometimes less, then we collect unemployment until we find the next one. We are looking to buy a house in Florida, but we won't be working in Florida ever. This will be the place we go to in between jobs.

By the way, this is all W-2 wages if that helps. Our problem is that we will not have a job at the time of buying a house. We will have alot in savings and healthy W-2's though. Just how our industry works.

Credit scores

Wife about 760-780

Me 720-740 and climbing, all negatives falling off middle of next year.

Savings$58,000

2012 AGI $96,500

2013 AGI $91,500 +$9,000 untaxed per diem

2014 $47 K so far this year. Currently unemployed but expecting $3800 week between us starting in 4-6 weeks

Bills are

Car $387.

Wife student loan $392, will be less than $200 after consolidation but figured that would be a big credit hit before buying a house.

My student loan $210.

Credit cards paid off every month.

Rent is $900

[surfbh]

We should be able to receive some type of loan. How do the self-employed do it?  I really hope we don't have to by our first house with all cash.

[StartingOver10]

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@surfbh wrote:

We should be able to receive some type of loan. How do the self-employed do it?  I really hope we don't have to by our first house with all cash.

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Self employed do it by supplying tax returns, bank statements, 1099's where applicable (commissioned sales reps), and other proof of income and assets.

Bad news first:  They don't do it by providing unemployment income. That is your issue right there when it comes to getting an FHA or other high LTV type loan.  Also, buying a home as a primary residence in a state, especially Florida, where you don't work is very, very difficult.

Good news:  There are alternative private loans. They typically require a much larger down payment (25% to 35% is common) and these types of loans are issued by smaller regional lenders or even private individuals. Some of these loans are hard money loans (high interest rate and short term).

Some sellers own their home free & clear and can hold a mortgage. Find an agent that knows how to find those sellers.

Where in Florida are you looking for a home? I have a couple of portfolio lenders here (I'm in S Fl).  

[surfbh]

We are looking the hardest at Palm Coast, which is between Daytona and St. Augustine.  Lots of newer homes on a 1/4 acre for $100-$150K there. Just trying to see what our options are. We've had $20K in savings at least since we opened an account with Wells Fargo 2.5 years ago if that helps.

[StartingOver10]

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@surfbh wrote:

We are looking the hardest at Palm Coast, which is between Daytona and St. Augustine.  Lots of newer homes on a 1/4 acre for $100-$150K there. Just trying to see what our options are. We've had $20K in savings at least since we opened an account with Wells Fargo 2.5 years ago if that helps.

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Don't go with Wells.

They issue all kinds of pre-approvals but then they can't close it so all you do is waste time and money.

Look for a lender first in that area that is a small regional lender or a mortgage banker. Make sure you explain the employment/unemployment situation right up front. I will pm you someone that might be able to help you.