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Hi & thanks in advance. My sister & her family want to relocate & buy their 1st home. They just got back from Tx. where a R.E agent told them without a job in a new state, they cannot get a loan. She has a great work history & a sizable down payment, and is confident of getting a job in the same field quickly. She wants to avoid wasting money renting, so was hoping to pick her desired state, find the home, buy & move & get a job. Is this possible? Say, FHA for example, will they give her a loan?
If not, how do people relocate without a job? How can she make this happen? She isnt dead set on Tx., in fact I want her to move to Mo. And a transfer is out of the question, her place of work is only in Ca.
If this can be done, how much down ( % ) will be required? I know there is risk in this type of situation, but it seems to me, the loan co. would know she'd be losing her down if she defaulted, and know she'd do anything to avoid this happening. Please help & thanks again.
People do relocate without a job. But that doesn't mean they buy a house. Seems a bit risky anyway to buy a house without a job. Why not look for a short term rental?
That will be what they'll have to do I guess, if they cant get a loan. They would really like to settle in for good, and only do one move. Moving is just so darn expensive, it seems like throwing money away & add in the rental $$$, it will just be flushing so much of her down away. She's a hard worker & one of those who can aways find a job, so I'm hoping for the best
Without a job, they cannot be approved regardless of how much they put down. Lenders require that the home buyer provide at least one pay stub before they can get final approval.
Here is a suggestion, find a house they would like to buy and ask the home owner to rent it to them until they get a job. If your sister has the money for a large downpayment, she could maybe pay 6 months rent up front to encourage the seller to rent then sell.
There must be some sort of income as it's all based on debt to income ratios. If she doesn't have a job, does she have lotto winnings (I had a buyer with no job and relocated on lotto winnings)? Does she have social security? Does she have a trust fund disbursing funds? Those are examples of how you can buy without a job, otherwise, no lender is going to trust that she'll be able to find a job quickly in her field. They're not taking that risk, ever!
There is another very good reason to rent before you buy when moving to a new area, and that is that it gives you time to learn where you actually would like to live. You can learn some from a visit, but nothing beats driving the roads in rush hour traffic to determine what you are willing to put up with, or shopping the stores you would be shopping at to see what they are like, etc.
Moving twice isn't so bad...just know that it will be short term, leave as much as she can packed, and try to find a rental in the immediate area of where she thinks she wants to buy. Then, if she does end up buying near there, she can move a lot of stuff in short trips herself in the car, and just hire a crew for a few hours to move big stuff, and if she DOESN'T end up buying in that area, then it is a good thing she rented and saved herself the mistake.
Thank you everyone for your great advice, and in my head I know your right. I get her side too, and know how wonderful being settled would feel for her. I got to do my last, "forever" move, and thats what she's trying to do. But everything you'all said makes perfect sense. thanks again
There is another very good reason to rent before you buy when moving to a new area, and that is that it gives you time to learn where you actually would like to live. You can learn some from a visit, but nothing beats driving the roads in rush hour traffic to determine what you are willing to put up with, or shopping the stores you would be shopping at to see what they are like, etc.
Moving twice isn't so bad...just know that it will be short term, leave as much as she can packed, and try to find a rental in the immediate area of where she thinks she wants to buy. Then, if she does end up buying near there, she can move a lot of stuff in short trips herself in the car, and just hire a crew for a few hours to move big stuff, and if she DOESN'T end up buying in that area, then it is a good thing she rented and saved herself the mistake.
I agree with this. Plus if she moves to say Dallas area or Houston area, living in the wrong spot could mean an hour + commute if the job is on the other side of town.
I think it would be better to rent a home for some time rather than buy it. It's really risky to take a loan with no job and constant income. Besides, it will be rather difficult to find a lender who will provide a loan for you with no guarantees of your creditability.
People relocate without buying a home all the time. It's perfectly normal. And as others have said, not knowing where her job will be located is a big barrier to buying a forever home. I'd rather 'waste' a few months paying rent than lose what it would cost to have to sell a house that didn't work for me a minute after buying it.
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And a transfer is out of the question, her place of work is only in Ca.
