Anyway to get around income?

[Target1212]

Here's my situation. I'm close with getting my fico score to par, right now it's EX 608, EQ 637 and TU 657. I just found out one of my last 2 collections are getting deleted, hoping for a bump from this. My income is low but savings is high. I currently (dont laugh) only make about 9500/yr since I had a baby and went down to part time. I also get 200/ month in child support making it 11500/yr. I have 10K to put down and can get 5k gifted from my dad if needed. I only have student loans with a balance (CC's are paid off) but they are deffered until 8/14 (maybe longer at this rate). What I wanted was a 50-60k house. Taxes are like 1500/yr....homeowners insurance about 600yr. It'll be my first home and I'm finding it hard to find a bank that will finance a house of this price, is my income too low? I've been there 6 years and was told I can write a LOE when I go back full time but I'm trying to get a home before this since I don't know when I'll be full time again (it's up to me but I enjoy my time with my daughter). My boyfriends not going on the loan (lack of job history and credit) and my dad could co sign but his DTI is REALLY high because he retired. 

[webhopper]

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@Target1212 wrote:

Here's my situation. I'm close with getting my fico score to par, right now it's EX 608, EQ 637 and TU 657. I just found out one of my last 2 collections are getting deleted, hoping for a bump from this. My income is low but savings is high. I currently (dont laugh) only make about 9500/yr since I had a baby and went down to part time. I also get 200/ month in child support making it 11500/yr. I have 10K to put down and can get 5k gifted from my dad if needed. I only have student loans with a balance (CC's are paid off) but they are deffered until 8/14 (maybe longer at this rate). What I wanted was a 50-60k house. Taxes are like 1500/yr....homeowners insurance about 600yr. It'll be my first home and I'm finding it hard to find a bank that will finance a house of this price, is my income too low? I've been there 6 years and was told I can write a LOE when I go back full time but I'm trying to get a home before this since I don't know when I'll be full time again (it's up to me but I enjoy my time with my daughter). My boyfriends not going on the loan (lack of job history and credit) and my dad could co sign but his DTI is REALLY high because he retired. 

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My advice to you would be to check out down payment assistance programs or maybe rural development or community betterment programs... If your scores are good but income low; you may qualify for some help with getting the loan... typically these programs have special lenders that will work with you. Talk to your local housing authority to see what programs they have!

[StartingOver10]

No, you have to have the income to support the loan. No way around it.

[StartingOver10]

Webhopper, I agree with the idea of the down payment assistance program; however, even with those programs the borrower has to have enough income to support the loan. The taxes and insurance alone eat up a large portion of her annual gross income.

To the OP, how long have you been part-time?  Are you 1099 or W-2 type employee?

Can you show the child support as a consistent income and that it will continue for the next 3+ years?

[Target1212]

I am W-2 and can show 2 yrs of steady childsupport along with court order it will continue another 8yrs. It just sucks I pay soo much more for rent without being late ever. The houses around here are possible to find a decent home for 50k with 20% down (or more) I was hoping my income wouldn't be as important. I understand I need enough to show I can pay, I also have no other debt, if they don't count in my student loans. If I have to I can wait until I go back full time and do the LOE then I'll be at 21000 a yr plus child support. But, If I take on an extra day a week say and go up some more hours, how many months would I have to show in check stubs? I was over full time the first half of 2012, then took 3 months off, two were paid, then went to part time. So my total w-2 will only be about 12000. 

[Target1212]

The downpayment's not really an issue, as I said I have a good 10K I can put down and another 5 my dad would gift, not looking for a huge home, just a starter. I have seen ones as low as 40k. But most are around 50k.

[webhopper]

RD Direct loans offer payment terms up to 38 years and payment assistance to keep your rate at effectively 1% Total debt ratio allowed is 41% backend and 29% front end. Not sure if this would work but a similar program is likely available if you search and ask the right people.

[Target1212]

Thanks webhopper! I didnt think about anyone offering more than 30 yr. I just hve to make sure I can pay it off early! Thanks!

[webhopper]

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@Target1212 wrote:

Thanks webhopper! I didnt think about anyone offering more than 30 yr. I just hve to make sure I can pay it off early! Thanks!

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No problem!  A 29% front end ratio doesn't give you much wiggle room at all on yourpayment, but I'm going to be hopeful that you can at least find some good information and with the down payment, you may be able to make it happen.

Good Luck!