Really glad that I’ve stumbled on this forum.
Brief history of my situation for context on my mortgage search.
I’m an American citizen that was immediately shipped overseas by my employer in 1999 after college.
I didn’t maintain a USA presence/bank account/etc.
My employer is finally moving back to USA in 2016, and am trying to find a way to get a mortgage upon my arrival.
The credit reporting agencies have basically nothing for me in their reports, what is there I’ve included below.
In March I applied for a Capital One secured credit card which is now showing on my report, but I have yet to use it.
I also found an old student loan that was unknown to me, which I paid off in March, but accepted a deal for less than the full amount (~$300 interest forgiven). Perhaps this was a mistake?
I’m in Oil & Gas, been in same company since 1999. I’ll be moving to Houston Texas in late Q3 2016.
Wife is foreign alien, pending her green card to move to states, she’s a certified accountant and should pull in about $100k per annum when established.
2 children below 10 years of age.
Only debt is some credit card debt on 0% interest cards in UK.
Highest possible credit rating in UK credit reports.
UK Mortgage payment of about £1200 monthly, but around £300k equity in London house, valued at £650k.
Exluding my wifes income and assets to focus just on what I can achieve for a mortgage.
I’d really prefer to avoid renting when we arrive. I can probably raise between $70k-$90k cash for a purchase, but with the move we will have many other outgoings with getting established so probably need to look at a product with low down payment which I understand means higher interest and maybe mortgage protection insurance, but that will still be cheaper than renting and we should quickly get to 20% equity once established e.g. within 12 months.
Based on the below information, what is the likelihood I can find a product to allow me to buy when I arrive in the USA and/or a strategy to make that happen?
Or is the sensible approach to rent for 6-12 months to build my score higher before trying to purchase – which is not my preferred approach.
- Mortgage Credit Scores:
FICO score unavailable – as per MyFico due to lack of aged accounts
Equifax report says 668 Equifax, 595 Experian, 677 TransUnion – assume this is their internal score and meaningless compared to FICO score?
- Credit Negatives:1 credit negative showing as 2 years 9 months old
- Type: Student Loan – USD Dept of Ed – date opened Jan 1 0001 (actual open dated mid-1995?)
- This was a $2250 loan from 1995 that somehow I was told either was paid or never knew was overdue. Only found it when I applied for my credit report in March 2016.
- Status: Paid – Settled for less than full value
- DOFD: Failed to Pay – 09/13 – Says time since negative 2 years 9 months
- Most Recent: Non-reported prior to 09/13 and post 09/13. But I perhaps foolishly paid off in April 2016 – now showing as negative on my May 2016 Experian report. Not showing on Equifax or Transunion
- Miscellaneous:
- Average account age 2 months
- I opened a Capital one secured card in March, it shows on my report from 1 April.
- No other items listed on my credit report
- Gross Income. Upon arrival in USA will be $165k + ~$35k annual bonus
Due to foreign earned income exclusion and tax credits my previous years income appears less on my 1040s.
- Source of income.
Full time salary employed. Same employer since pre-2000.
- Annual bonus (~$35k) with evidence from last 20 years…
- Pension – Overseas pension, untouchable
- Rental income – potentially ~$3500 per month
- Monthly debt payments.
Nothing on my USA credit report.
~$1800 monthly mortgage payment in UK
~$800 monthly credit card payment in UK
No current car payment, but will need to buy 2 cars in USA, not sure with cash or finance.
- HOA/Condo fees:Non currently – looking at houses with between $500 to $1100 a year HOA fees
- Student loans: As above for negative, 1 student loan for $2250 from 1995, paid off outstanding balance minus some interest in April 2016. If I would have known settling less than full would be negative I would have just paid the next $300 for interest – can I still do that to fix it?
- Employment(for those who are employed).
- Type of employment: full time
- How longhave you been on the job – 20 years
- How longhave you been in the industry/career field – 20 years
- A 2 year employment history is what most loan programs require – since 1999 worked abroad in several different countries but all for same employer
- Assets/Reserves.
- Savings $50k (overseas account – UK)
- Checking $20k (overseas account – UK)
- 401k – N/A
- IRA – N/A
- Stocks – ~$35k in overseas stocks
- Home Equity - ~$450k equity in London home
- Location:
- Houston Texas 77077 / 77450 / 77494
- Property Description:
Single family house
Looking at properties mostly from 2000 to 2010 – maybe a few from 1975 or newer.
- Property Value.
Purchase transaction:<$450k
- Occupancy.
- Primary residence - yes
- 2 adults 2 children – my foreign alien wife is certified accountant and will look for employment upon arrival I assume she can find work for around $100k per annum – but would not include that in our house purchase decision.
- She was self-employed in UK for last 3 years and just finishing 12 months of maternity.
- Are all mortgage applicants going to be living in the house? - yes
- 2nd home – property in UK, to be rented/kept for up to 18 months to maximize equity prior to capital gains taxation exemption window closing.
- Transaction Type. Purchase – first time buyer in USA
