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Old 05-11-2011, 06:39 PM
 
Location: Laguna Niguel, CA
768 posts, read 4,331,769 times
Reputation: 457

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That is correct, you wouldn't have to use your diploma.

A phone bill & utilities bill won't appear on your credit report as traditional credit history, but the credit card account may. There are quite a few creditors who do not report authorized user accounts to the credit bureaus, and there are many lenders who will not accept authorized user trade lines to meet FHA's minimum trade line requirements. However, conventional financing isn't as picky, and you'd have 20% down anyway, so that may be a better alternative if you can slide one past the underwriter. Further, if you get added as a joint account holder (which is different than an authorized user) then all lenders are fine with accepting joint accounts as traditional trade lines.
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Old 05-12-2011, 08:43 AM
 
Location: North Western NJ
6,591 posts, read 24,787,990 times
Reputation: 9680
i did want to add though you seeemd very excited about the prospect of going over $100,000 on a mortgage wiht your parents as co-sighners...

i wanted to say just because you could, doesnt mean you SHOULD...
unless of course daddy is going to be paying part of your mortgage...

no matter how much you qualify for, you should only BUY what you can afford...

do the math, take into account youll also have utility bills, possible mortgage insurance, home owners insurance, your own phone, internet, cable ect...

you need to make sure you take into account ALL the bills associated with owning a home that you may not be used to paying...
plus making sure your setting aside money for the emergency fund too, when you own your own home anything can happen, suddenly the fridge breaks, or yout hot water heater dies, or your pipes burst or the ac needs servicing ect...

so its not nessicarily a case of "i can afford $800 a month so that means i can get a mortgage wiht that monthly payment..." it means "i can afford 800 a month and that has to cover EVERYTHING to do with owning my home"

so please do take that into account...
it was one of the things i was adamant about, my lender offered to pre approve me for more than i origonally wanted...but when i thought about the extra, i just knew i couldnt comfortably afford the extra with everything that comes along with Owning a home.

youve probably already thoguht about all this, but youd be suprised how many people DONT, and take on more than they can afford.
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Old 05-12-2011, 12:16 PM
 
2,059 posts, read 5,732,083 times
Reputation: 1685
The OP says his parents will be helping him out with expenses.
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Old 05-12-2011, 01:05 PM
 
2,879 posts, read 7,755,765 times
Reputation: 1183
Try Free Credit Score & Credit Report Card. No Credit Card Needed for free Transunion Score. I would avoid the cosigner thing. On the one hand, you do need to build your credit, on the other hand, with 60K, you could go to Sacto. and pay cash and be done with it. Consider Arizona. Phoenix is actually nicer than Sucramento, IMO. also, you seem to have gotten some really bad advice on your major. Peace Corps doesn't pay very well.
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Old 05-12-2011, 04:37 PM
 
Location: West Contra Costa County, CA
24 posts, read 79,508 times
Reputation: 32
Quote:
Originally Posted by foxywench View Post
i did want to add though you seeemd very excited about the prospect of going over $100,000 on a mortgage wiht your parents as co-sighners...

i wanted to say just because you could, doesnt mean you SHOULD...
unless of course daddy is going to be paying part of your mortgage...

no matter how much you qualify for, you should only BUY what you can afford...

do the math, take into account youll also have utility bills, possible mortgage insurance, home owners insurance, your own phone, internet, cable ect...

you need to make sure you take into account ALL the bills associated with owning a home that you may not be used to paying...
plus making sure your setting aside money for the emergency fund too, when you own your own home anything can happen, suddenly the fridge breaks, or yout hot water heater dies, or your pipes burst or the ac needs servicing ect...

so its not nessicarily a case of "i can afford $800 a month so that means i can get a mortgage wiht that monthly payment..." it means "i can afford 800 a month and that has to cover EVERYTHING to do with owning my home"

so please do take that into account...
it was one of the things i was adamant about, my lender offered to pre approve me for more than i origonally wanted...but when i thought about the extra, i just knew i couldnt comfortably afford the extra with everything that comes along with Owning a home.

youve probably already thoguht about all this, but youd be suprised how many people DONT, and take on more than they can afford.
Thanks for your concern. Just so you know, for a living, I pay bills, taxes, insurance, utilities and all other expenses for my father's income properties. I am his bookkeeper, co-manager, and do tax prep work for his income properties which are worth a bit more than 4 million dollars total. I do yearly tax preparation on income property adding up expenses and income. I have been doing this work for years, so unlike most people my age, I have a very realistic idea on how much money it takes to own a home.


With my current income, I don't have enough myself to pay for all expenses and mortgage (which will probably be in the ballpark of $2,000-$2,500 a month with everything added up). However, my girlfriend is going to be moving in with me when I get the house and she has a steady job which will help pay for food, gas, insurance related items while I pay for the mortgage/property taxes. Secondly, I always have the option of renting rooms to pay for any related expenses. Thirdly, I have a job lined up already with another property management company doing leasing work if I stay in the area. Lastly, my father told me that if I needed any money temporarily to fill any gaps he could do so, but with the above options I don't think I'd even need to ask him.

I have thought all of this through extensively, and although my current salary is just enough to pay the mortgage on a 160,000-200,000 house and maybe the property taxes/home insurance, I am going to need at least another thousand to pay for food, car insurance, utilities, cable and phone, etc. I am also going to set 5000-10,000 aside from my down payment for maintanence related emergencies and what not. I agree with you though, there a lot of people, even ones I have seen first hand who have no clue on how much it takes to live in a house. I have thought this through and am sure that through my girlfriend, renting rooms if I have to, of course taking this other job which could double my income (and looking for other work), and with my father being willing to supplement any shortcomings for the time being, I am not worried about making the payments on the home and other expenses.

One other thing, if I could find a decent house in the SF bay area for under 150,000, i'd get it. Around here, 150,000 is the bottom of the barrel and I realistically should look at least in the 200,000 range if I want to buy into a safe area with a house that isn't a major fixer. There are only a handful of cities in this entire region that I can afford. Luckily, with the downturn of the real estate market, I CAN afford something decent, albeit maybe a little small, because 5 years ago I would have had a hell of a time finding one for 150,000-200,000 in this area.

Last edited by BayAreaGuy87; 05-12-2011 at 04:50 PM..
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Old 05-12-2011, 06:32 PM
 
Location: West Contra Costa County, CA
24 posts, read 79,508 times
Reputation: 32
Quote:
Originally Posted by ShanetheMortgageMan View Post
That is correct, you wouldn't have to use your diploma.

A phone bill & utilities bill won't appear on your credit report as traditional credit history, but the credit card account may. There are quite a few creditors who do not report authorized user accounts to the credit bureaus, and there are many lenders who will not accept authorized user trade lines to meet FHA's minimum trade line requirements. However, conventional financing isn't as picky, and you'd have 20% down anyway, so that may be a better alternative if you can slide one past the underwriter. Further, if you get added as a joint account holder (which is different than an authorized user) then all lenders are fine with accepting joint accounts as traditional trade lines.
I have one more question.
Let's say in a week my father makes me joint account holder for 3 accounts (1 credit card, 1 utilities, 1 phone). When I apply for a loan, whether its through FHA or through conventional, will the lender will need to see my bank account history showing that I deposited paychecks and took money out to pay these accounts? How many months will they want to see? What if i'm only paying a few hundred dollars a month toward these accounts?
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Old 05-12-2011, 11:17 PM
 
Location: Laguna Niguel, CA
768 posts, read 4,331,769 times
Reputation: 457
Nope, no statements would be needed. However 2 months of bank statements is a common requirement in the situation where you have any assets that need to be documented.
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Old 05-25-2011, 11:03 AM
 
46 posts, read 53,325 times
Reputation: 16
Quote:
Originally Posted by BayAreaGuy87 View Post
One other question.

I understand college graduates often get two years work history except if they have a job and its related to their field of study. My job is not related to my field of study, but I do have 2+ years of work experience working for my father's property management company.

So, I wouldn't even need to have my diploma yet in order to apply for an FHA loan? I do graduate in about 3- 4 months but i'd like to apply as soon as I get this credit score, which will be in 60 days.
Can you expand on the underlined sentence? Are you saying you need two years of work experience unless your job out of school is related to your major?
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Old 05-28-2011, 03:46 PM
 
Location: West Contra Costa County, CA
24 posts, read 79,508 times
Reputation: 32
Quote:
Originally Posted by Honestmike View Post
Can you expand on the underlined sentence? Are you saying you need two years of work experience unless your job out of school is related to your major?
Yes, that's what I read. FHA will forgo the 2 years work requirement if you have a job out of college that is related to your major. I don't quite understand the logic in that myself, I mean a job is a job and in this economy a lot of graduates are taking whatever they can get. Also, many majors like psychology, history, and social sciences don't have many job opportunities related to them right out of college, so many grads end up working in business, education, or public service jobs. I think FHA needs to change their policies in relation to the changing times.
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Old 05-31-2011, 01:47 PM
 
Location: Land of Free Johnson-Weld-2016
6,470 posts, read 16,335,278 times
Reputation: 6518
I think the OP is on the right track. I wonder why he's going to get an FHA instead of a conventional loan, though...I thought FHA loans had higher interest rates...
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