EQ 734 (should be 630-650 eq error)
EX 641
TU 633
No verifyable income.
past 8 months i have been doing self employment work makeing estimated 70k a year.
Have not filed tax returns for atleast the past 2 years.
previous job was have on the table half under the table so would only show about 20k of income.
i want and need 100% financing for a house thats listed at 389k but the seller will do it for 350k.
What can i do i am in NJ.
am i screwed?
:biggrin
I’m no mortgage expert but with what’s happened lately I’d guess you are. Even in good times I don’t see what would be compelling to a lender to loan you money.
Probably screwed.
The stated loans are looking for high credit scores. Your credit scores are probably too low for what they would accept in order to do a stated loan. There might be a loan out there for you, but $350,000 is a big number. Hopefully you have a wife with income, because even at $70,000 a year you will probably lose the house in foreclosure.
My advice is too buy a cheaper home. You don’t want to lose the first house you buy. With your income I would try and buy a house half that amount. If anyone gives you this loan, they WON’T be doing you a favor.
Threecars,
You should definetly not do this deal. Based on the information you have provided you will need to go with a no doc loan which means a higher rate and with a 641 I don’t know of any 100% FTHB programs like that although that does not mean they don’t exist. The bigger problem is that you just don’t make enough money to afford a house at that price. 70K a year breaks down to $5833 per month. PI on a 350K home fully amortized is $2537 per month based on a 7.875% before insurance, taxes and MI are factored in. Just the PI alone puts you at a 44% back ratio wich means 44% of your pre-tax income is going towards your house payment. Once you add in everything else that ratio is going to be closer to 60% based on an estimate of $1000 for insurance,taxes and MI. You will be the definition of house poor. Also, seven months is not really long enough to determine whether the busines is going to survive. They say most businesses fail within the first year. Wait at least five more months before making a home purchase. File a tax return that shows income and there are numerous FTHB programs that will qualify you on one year of self-employment. Especially if you have over a 620. Hope this helps.
I concur with Christopher. Your income does not support the purchase of a house of this value. Unfortunately, you cannot always purchase your “dream home” as your first home.
As Iron Range stated,
My advice is too buy a cheaper home. You don’t want to lose the first house you buy. With your income I would try and buy a house half that amount. If anyone gives you this loan, they WON’T be doing you a favor.
That is why you hear about “starter” homes. Get in, build equity and reserves. Work on your credit, then go for an upgrade.
Good Luck!
dream home this is not. I am in NJ houses are very expensive here. and i wont be paying for it alone. I will be doing so with my wife, and i will also be investing soon. But ide rather own my own home first. I dont plan on staying there long just enough to build some equity so i am hoping to do a payment option loan.
my wife has verifyable income but its only a little over 40k and her mid score is only 606.
would i be able to get a 90% ltv or 95% i was told thats what i would likely end up with by quicken loans but i am waiting a call back from them.
threecarsdotcom,
My first property I ever bought was a NOO duplex. I then bought 3 more duplexes and 1 SFH. THEN, I moved out of my parents house and bought a SFH for myself. Everyone thought I was crazy. Living at home and having 1,2,3,4, and then 5 investment property rentals. Well when I bought my house to live in, then all of a sudden everyone say my plan and thought I was a genius. I was the first one of my friends to buy a SFH, and I currently have the nicest and biggest house of any of my friends.
Don’t think you have to buy your house first before you buy some rentals. I actually think it worked out better waiting to buy my first owner occuppied property. Before you give up that apartment and take on a huge $350,000 property that brings in $0. You may want to consider buying some rentals first. Just something to consider.
that doesnt sound crazy to me. But if i am having a hard time financing my own home i don’t think it will be any easier to finance an investment property.
maybee i should hold off for 2 or three months hopefully i will be at 660 mid fico or better by then, or spend my money on a downpayment.
thanks for all your help guys.
maybee i should hold off for 2 or three months hopefully i will be at 660 mid fico or better by then, or spend my money on a downpayment.
Great move. Take some time to “tidy up your own house” financially. If that has been taken care of, tuck some away so that you can show some “reserves”.