@Anonymous wrote:For weeks I've been searching the internet trying to find some indication of whether my husband will be approved for a home loan but I can't find anything that comes close to our situation, so I thought I would just ask & see if anybody can give some insight on what I can expect when I follow up on our mortgage app this week. The wait is killing me & I have a dreadful feeling he is not going to be approved, so I guess I'm just trying to prepare myself.
What do you guys think the odds are of an approval or denial based on our history?:
I am a stay at home mom. I worked for 6 years at an insurance company but resigned over a year ago to stay home with our 1st child so I will not be on the loan.
My husband's middle score is 655.
He works in the oil and gas industry. He started in this industry in feb of 2010 (not making much money) & moved to his current company in the beginning of may of 2010 so he has been in this field 18-19 months & at his current position 15-16 months. We are applying for FHA & the 2 year work history thing has me worried. My husband has always worked, I just don't know if they will solely focus on the last 2 years & that lapse of employment. He began college in Sept of 2006 & also started a job at that time. He worked at that job until March of 2009 (sometimes part time, sometimes full time, depending on what he could work around his full time school schedule). In Feb of 2009 he started with another company, so he was working 2 jobs & going to school. He resigned from the 1st job in March b/c they were running out of hours for him, worked well over 40hrs a week at the second job, graduated in May of 2009 & then resigned from that job to take a low paying job in the field he graduated in. He worked in that field until Nov of 2009 (masonry, so it's seasonal), was told to file for unemployment but the owner would likely have indoor work & would be calling him in a week or 2. When he didn't call, my husband immediately began looking for work but with the economy how it is, it took him until the beginning of feb. He took a position planning on returning to his masonry position however learned about the money to be made in the oil & gas field & ended up staying in that field & not returning to masonry. So he has worked steady from sept 2006 (even before that) until nov 2010, then a lapse from nov-feb, then steady from feb 2010 until now. So that's my # 1 concern.
The # 2 concern is his income. My husband works a weird schedule & gets weird bonuses & overtime. He works roughly 90 hour weeks 2 weeks at a time, then has 2 weeks off. So obviously 48-50 hours on his paycheck are overtime hours but since he hasn't been there 2 years, FHA will not count his overtime pay which basically seems like he makes nothing. Now the loan officer did say since his employer will document that he HAS to work 90 hours a week, that they can count his overtime hours, but not the over time pay (which makes no sense to me since you can't work overtime & not get paid an overtime wage, but whatever, as long as they count it as something I'm happy). He also gets bonuses, hazard pay & a per diem pay of $500 that is a tax deduction so while it puts more money in our pockets, it doesn't add to his gross income. His gross pay on his last 2 paychecks which included his overtime, safety meeting pay & hazard pay (2 weeks of work) totaled $5400. Not factored in is his per diem allowance of $1000 for the two weeks. & 3 bonuses for the month of $698 total. I know it's a lot to take in & is confusing, but basically all that matters is the loan officer put our monthly income at $3813.00 which is a good deal less than actual, but I'm wondering if this will be enough to qualify for the loan or if they might even count some of the other things?
#3 problem...credit collections. They are from 2005 & 2006 which shouldn't normally count, but my husband couldn't remember what the 2005 ones were so we disputed them a few months ago & now they are showing as fresh. They are about $150 & $180 each. & there are 2 of them for the same visit rather than just one. The other one from 2006 was $654, we made one payment of $50 back in 06 which took it down to $604 then in 2010 they sold it to another company, so now it is showing on the credit report twice (one for $654 & the other for $604) & the newer one doesn't show it's medical
total monthly payments listed as $824
We pay $700 in rent now
loan amount $85671.00
cash needed to close: $3600
$4600 in savings
Any thoughts from the experts? Any insight will be appreciated, this is all new to us!
Hi I know how stressful this is. So anyway, what do you mean they are "showing as fresh?" What does the credit report list the DATE OF DELINQUENCY or DATE REPORTED as? Even if they updated it for July or even August of 2011, that doesn't make it "fresh" -- the score is impacted when it first goes to collections and even if the Collection Agency keeps updating a balance due (is it paid) or a zero balance (?) it won't change the fact that it was first reported back 06.
Regarding his wages and hours - I have no idea.
