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Reading these posts I see their are simliar posts, but since everyones story is a little different, i wanted to reach out for some advise.
My wife and I are approaching 40 , have two small children and after years of window shopping looking to purchase our first home. We are hoping to qualify for an FHA loan.
Their are a few problems: While my wife makes $30k and job is fully on the books. I make about $40k with a small business but only show about $7k. Its not that I am trying to avoid taxes, its just my money comes from different people in drips and drabs and is almost impossible to document. This year i tried to doccument alot more,but my accountant wrote alot of expenses against it, and all of a sudden we are back with a $40k tax return.
Our last landlords took cash from us, so we dont have the check receipts.
Our credit is "okay" with a score of about 700 for my wife and about 640 for me.
One thing we do have is a steady savings. Usually in very small increments, but steady so we have a nice paper trail.
We are also realistic and looking for a small home, or co op that is around $100k.
Our invisible lease is about to expire and rent is outragous (we are in NYC area),plus from what I am told current landlords want even a higher credit criteria than purchasing!
I want to avoid housing, and as much as I love my family, living with them is not a good option.
Any help is greatly appreciated! For anything private you can PM me as well. THANKS!
my wife makes $30k
I ...only show about $7k.
Our last landlords took cash
Our credit is ...about 700 for my wife and about 640 for me.
Any help is greatly appreciated!
Long story short... you're not getting a mortgage anytime soon.
To the degree that your modest income might qualify you for one of the several programs...
the undocumented cash will in all likely disqualify you.
MrRational wrote:
Long story short... you're not getting a mortgage anytime soon.
To the degree that your modest income might qualify you for one of the several programs...
the undocumented cash will in all likely disqualify youte:
First off I appreciate your cutting to the point and honesty. IQuick question though: So my on the books income is supposingly just enough to squeek us through for an FHA loan for the 100k home. But then as you say, they disqualify me for undocumented cash. If we still have $40k on the books, and the down payment (excluding closing costs) is $3,500. why would they consider it undocumented? Even at $40k we would have no money saving that money, which we did....
MrRational wrote:
Long story short... you're not getting a mortgage anytime soon.
To the degree that your modest income might qualify you for one of the several programs...
the undocumented cash will in all likely disqualify youte:
First off I appreciate your cutting to the point and honesty. IQuick question though: So my on the books income is supposingly just enough to squeek us through for an FHA loan for the 100k home. But then as you say, they disqualify me for undocumented cash. If we still have $40k on the books, and the down payment (excluding closing costs) is $3,500. why would they consider it undocumented? Even at $40k we would have no money saving that money, which we did....
There are alot of things underwriters look at besides your cash reserves and income number. They usually want to see some form of paystubs, and the last 2-3 years of your tax returns for everyone on the loan (i.e you and your wife). It sounds like you only had your small business income recorded for this past year, which may raise a red flag. The Cash-only, invisible-lease landlord probably will not help your chances either, as they will want to get in touch with current and previous landlords to determine if pay your rent on time (so they know you can pay your mortgage on time). I'm not sure if they request any specific records from the landlords, but if they do, that might sink you.
I would talk to an actual lender to get their professional opinion. Look up a couple online (zillow is a good option) or via friends and tell them your situation. They will have a much better idea about your chances than anyone on this board (who isn't a lender).
Maybe consider only putting the wife on the loan? Would her income qualify? (but where the hell are you finding $100k condos in Ny? And have you added that condo fee into this equation?)
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