New Truck Driver Mortgage Challenge

[CreditControl]

Hi all....I will try to keep this short!  My husband and I are in the process of buying a new home (new construction though this one is already finished and the last in the subdivision).  After 23 years at one employer, the company was quickly declining  so he decided to leave, go to trucking school and eventually get his own truck to become an owner-operator.  Currently, he was hired by a company immediately after finishing trucking school and began just last week with a plan of getting initial experience in the field. 

Because the lender informed us that truck drivers paid by the mile typically have to show a 2 yr history, we opted to attempt the loan in my name only.  Unfortunately, we are a bit over the approved DTI with me alone.  My husband and I both have decent credit (699 mid) and he has even less debt than me.  It's just the hurdle of the timing of his new job career....We are expecting our first child later this year and would literally have to rent storage to make room for the baby in our current home.

The lender has suggested that my husband ask his company for a letter that states a guaranteed minimum number of hours he would drive so that could be used as potential calculation for income.  It is not much income needed so the company would not have to guarantee many hours at all and quite frankly, his schedule will be on the road 5 days, home 2 so I don't see why this should be a huge issue. 

Finally!  My question - has anyone been in this situation or have any of the loan gurus on the board seen this work??

Thanks in advance!

[ezdriver]

Check with your local credit unions and small banks. Ask all of them if they have a portfolio loan product for new self-employed people.

[CreditControl]

Thanks for your reply ezdriver!  My husband will actually be a W2 employee not 1099....

[StartingOver10]

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@CreditControl wrote:

Thanks for your reply ezdriver!  My husband will actually be a W2 employee not 1099....

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At least you have that going for you. The issue I see is a change of careers. It's a problem with the lenders with which I am familiar.

Your options would be to get a private loan or a portfolio loan where the lender doesn't sell off the loan to fannie or freddie. FHA also needs two years in the new career unless he is a recent graduate and working in his new field.

Your other option would be to pay down your debt so you fit the ratios and get the loan in your name only. What are your ratios (front and back end)? FHA will still go to 56.99 on the back end (working with a customer now like that).

[CreditControl]

Thanks Startingover10.  Back end is 54% and I haven't heard the front end but will ask when I next speak with the lender.  I can't go FHA because our existing home (which I purchased before meeting my husband) loan is FHA and we don't have 30% equity.  We ARE however, using Marketplace homes to lease the existing home contingent upon the new home purchase going through but as you probably know both mortgages are being figured in.

[ezdriver]

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@CreditControl wrote:

Thanks for your reply ezdriver!  My husband will actually be a W2 employee not 1099....

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That W2 status won't make it easier because he won't be salaried. I am W2 as well ... but work on a draw vs commission comp plan. The underwriters use the average of two years to calculate the income that they use for qualifying purposes unless salaried. Just like credit scores alone don't mean much, W2 status alone does not mean much.

[CreditControl]

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@ezdriver wrote:

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@CreditControl wrote:

Thanks for your reply ezdriver!  My husband will actually be a W2 employee not 1099....

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That W2 status won't make it easier because he won't be salaried. I am W2 as well ... but work on a draw vs commission comp plan. The underwriters use the average of two years to calculate the income that they use for qualifying purposes unless salaried. Just like credit scores alone don't mean much, W2 status alone does not mean much.

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Exactly - which is why I am hoping to get somewhere with a letter from the company.  We shall see!

[StartingOver10]

How is he paid? Hourly? Or something else?

[CreditControl]

Paid by the mile...so we've been asked to see if the company will provide a letter stating a guaranteed minimum number of miles to use for calculation.

[coterotie]

One of the mortgage guys could chime in here, but...

If he went to trucking school, why couldn't he be qualified under the new graduate program?  Then a letter with minimum miles should work to estimate his new income.