FHA & BK& job history

[pokerpro]

Hello all I was hoping I can get some insight on FHA in respect to our situation My wife has a clean credit file with an average credit score of 760 + I have a BK from 2004 , clean file ever since with an average credit score of 720 + No inquiries in over three years on both credit files. Monthly fixed debt constitute of roughly 250 in student loans, Credit card debt is about 1k in total We do have a car loan but my wife owns her Buisness so we financed it through the company Not quite sure if it still counts against us as a monthly debt or not Household income is Roughly 95k and we live with my in laws in NY How will the BK affect us , What about the fact tha I just started a job and were overseas the past two years which means not much of a W2 t I have been hesitant to talk to chase mortgage guy and wanting to understand th FHA provisions Thanks

[JM-AM]

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@pokerpro wrote:
Hello all I was hoping I can get some insight on FHA in respect to our situation My wife has a clean credit file with an average credit score of 760 + I have a BK from 2004 , clean file ever since with an average credit score of 720 + No inquiries in over three years on both credit files. Monthly fixed debt constitute of roughly 250 in student loans, Credit card debt is about 1k in total We do have a car loan but my wife owns her Buisness so we financed it through the company Not quite sure if it still counts against us as a monthly debt or not Household income is Roughly 95k and we live with my in laws in NY How will the BK affect us , What about the fact tha I just started a job and were overseas the past two years which means not much of a W2 t I have been hesitant to talk to chase mortgage guy and wanting to understand th FHA provisions Thanks

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Your BK will have no impact on the credit decision or rate for the loan using FHA since it is an older BK.

If starting a new job it can cause issues unless it is in the same field. But in your situation your last job has no w2's for verification may cause more complications. Did you file taxes and report the income from last job? If you filed taxes they can request a 4506t to look at your tax forms, which they will most likely do anyway since your wife is self employed.

Just a question here....

Why not just use your spouse for obtaining the loan since her credit is strong?

Unless her being self employed is less then 2 years and or her income will not qualify her in my opinion this would be the easiest way to apply. While being self employed can cause a few delays, your situation in my opinion will cause much longer delays.

[pokerpro]

Hi JM My salary is 60k , while my wife pays herself around 35k from the business which is actually ove ten years old . Basically w would not qualify for much house on her income alone I was not working for a US based company so W2 does not exist However, it was in the same field . My wife is actually a tax accountant so we are talking about amending the returns and file a 2555 form for foreign income exclusion I don't know what to do anymore

[pokerpro]

The company my wife owns is actually an LLC accounting firm Can we use that with its 10 plus years of profit and returns as well

[JM-AM]

They can try and send a VOE (verification of employment) which the company can fill out and return and that may be enough, it is more of an underwriter decision. Do you have direct deposits going into your account from said company on your bank statements? Do you have checks you deposited reguraly into your accounts on your bank statements. These are additional things you could probably use to help verify employment with said company. 

If you get a VOE from said company the new job since it is the same field should not have any adverse reaction for approval, but once again YMMV since it will be up to the underwriter to approve.

As far as using your wife's company to purchase the home you would have to discuss those options with the LO.

[pokerpro]

Thank you for the insight I definitely have the direct deposit regularly for about 2.5 years. It was a bank so thats a given arrangement Ishall I talk to chase about all this or pik a different lender

[JM-AM]

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@pokerpro wrote:
Thank you for the insight I definitely have the direct deposit regularly for about 2.5 years. It was a bank so thats a given arrangement Ishall I talk to chase about all this or pik a different lender

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In my opinion I would use a Mortgage lender instead of an LO with a bank. They offer more choices to get you approved. Just my 3 cents.......