A little bit of background. Moved back to the US in Dec 2016 after 9 years of me living overseas. When I moved back my credit was reset as I had no activity for those 9 years, ok fine, spent the last few years building my credit back up and get two years of income and tax returns. I married my wife overseas, so she immigrated to the US in 2016 but had to wait for a year and a half while her USCIS application was adjudicating. This gives her about 10 months of employment, she could not work until she received her documentation. I will address this later. I am living in a house owned by my father-in-law, he is able to let us live in the house rent free while we established our family (two kids) and got financially stable after working for so many years in the non-profit sector, my savings were nothing. This is another issue. My father-in-law owns the house outright, so he will be giving us a gift of equity for 10% down payment and covering costs. Since my wife has been only working for 10 months, how is her income calculated? I started at $50k salary and over the last two years I have received promotions so I now make $63k. Do they average out two years for FHA or is it based on what you make now? I do not have rent history as I have been living rent free so far, is this a huge issue? FHA loan Mortgage score - mine is 649 and wife is 624 Buying in Phoenix, AZ Total gross currently - combined $96k Buying end of this year (hopefully) Home value - $260k
Got my DTI figured out but the above two issues were throwing me off if I am eligible or if these issues can be worked around.
Only your income will count. If you are salaried UW will use your current income. Your wife’s income is a compensating factor. There may be some exceptions in excluding your wife’s income IF for instance she has a profession (Physician, RN, etc) something along lines. She will need 2 yrs of continuous employment for her income to be considered. Yes your father (owner of home) can gift you equity and closing costs. The fact that you do not pay him rent may well be problematic. Every case like this has different circumstances. From the lenders view point you have no history of being able to pay rent or housing expenses. However maybe you have been putting $1200 a month in a savings account in order to purchase a home.... that would be a compensating factor.
Because every situation is unique and different you need to sit down with a very wise Mortgage Broker to go over your situation so it can be looked at from every angle and find you the best loan and lender to fit your situation.