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My boyfriend is over-the-top when it comes to fiscal responsibility and discipline as far as saving and investing. He has never made a lot of money but at 52 he has 2 houses one with 40,000 eq and the other with 100,000 equity. Also he has made good investments but cant touch that money for 10 more years. All together is is worth about 240,000.
Problem is he doesnt have a job. I do and I make about 40,000 but it wont show til next years taxes. I am a self employed barber. My credit score is around 638 but thats the highest one. The other 2 are lower.
Can he, or we, get a mortgage? Our plan is sell house we live in and put down 80,000.
No. He has no income. How would he pay the mortgage payment? And why can't he touch the invested funds for ten years? How is he paying the mortgages on those two houses that he already owns? Seriously, something doesn't sound right.
Your income will not be acceptable for a mortgage application until you have TWO years of tax returns that show the income. They will be using the net income - that amount you pay taxes on, after you report expenses related to your business - not the GROSS income. So, it's likely you'll have less than $40K. Furthermore, you need to get busy rebuilding that credit score.
(Frankly, the boyfriends sounds like a loser, with no job and no job history, at 52 years old. But that's another topic.)
I'm assuming he can't touch his investments because they're in tax deferred retirement accounts? How much is the house you are planning to buy? Unlikely the bank will approve any loan with no history of documented self-employment income and a low credit score. It will be easier to get a loan with his credit score so he should go out and find a W-2 job right away if you really are serious about buying a new house.
Unless you live in an area where $80,000 in cash will buy a house outright, you're better off staying put until you both get two years of income history and you get a better credit score. FYI, $100,000 in retirement accounts and $140,000 in equity at age 52 isn't bad but it's not exactly an over-the-top example of fiscal responsibility. There are plenty of folks with low incomes that retire with a million plus in assets.
I'm assuming he can't touch his investments because they're in tax deferred retirement accounts? How much is the house you are planning to buy? Unlikely the bank will approve any loan with no history of documented self-employment income and a low credit score. It will be easier to get a loan with his credit score so he should go out and find a W-2 job right away if you really are serious about buying a new house.
Unless you live in an area where $80,000 in cash will buy a house outright, you're better off staying put until you both get two years of income history and you get a better credit score.
But her income isn't going to get them much of a house, even with a better credit score.
Also - how can he have deferred income if the guy has never really had a job? Maybe he stashed some money in an IRA on those odd years he was working. . .
I think it is worth making a case for it if owning a home is that important to you in the near future. You will probably have a rough time and will be asked to provide a lot of documentation. Still there is surely an underwriter out there who would lend you money for a house.
But her income isn't going to get them much of a house, even with a better credit score.
Also - how can he have deferred income if the guy has never really had a job? Maybe he stashed some money in an IRA on those odd years he was working. . .
maybe she doesn't want "much of a house"! i'm hoping for the OPs sake that they are looking in a low cost of living area.
Thank you all for your input. I guess what I mean by him being responsible is that until Jerry Garcia died in '95 my boyfriend was a deadhead, traveling as a Grateful Dead groupie until he was in his thirties working whatever odd jobs he could but always paid his bills and saved 10 percent in retirement accounts. He then got into real estate and bought a tiny two bedroom house in Richmond Va where we both live. And the rental. So I think he did pretty good considering he was stoned half his adult life.
For the one who asked who pays the bills, we both do. He gets rental income cash flow plus savings and also my income.
We are getting married in October and we need a bigger house. It's just hard to believe we can't get a loan with what we have, a large down, assets, and great credit. And my income. Oh well. Maybe we should wait.
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