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Old 04-11-2013, 01:29 PM
 
Location: Marshall-Shadeland, Pittsburgh, PA
31,285 posts, read 69,873,080 times
Reputation: 16942

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Just the facts:

ME: Employed as a food delivery driver since August 1, 2011. I know lenders generally want to see consistent employment for two years. (Strike one against me). My income fluctuates wildly, but I tend to net $35,000-$40,000 per year. I reported my credit card tips and per order income when I filed taxes, but I didn't report cash tips due to poor record-keeping; they were insignificant anyways. (Strike two against me). My credit scores are all around 650. (Meh---working on it!).

PARTNER: Employed as a mailroom clerk since June 2009 at the same employer (good). Able to show consistent income on filed tax returns (good). Earns a salary of around $25,000. He's unsure of what his credit scores even are, but I'm sure they aren't good due to high revolving debt and prior delinquencies.


Given the above do you think if we applied jointly we'd qualify for FHA financing as first-time home-buyers? Would his poor credit overshadow his stable employment history? Would my better credit score help offset having been in the same position for under two years? Ideally I know we would have to talk to a lender, but I don't want to just embarrass ourselves if we don't have a shot in Hell of qualifying. We're looking at homes priced under $75,000.
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Old 04-11-2013, 01:41 PM
 
969 posts, read 2,049,872 times
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I think it will come down to how bad his credit is, for FHA loan, I think each applicant has to have a 640 credit score but they are more lenient on the terms, sketchy employment and so forth, the only way to know is talk to a lender, and don't be embarrassed, they have probably seen worse and will tell you what you need to do, work on if you don't qualify, that's what they are here for. Good luck~
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Old 04-11-2013, 01:58 PM
 
4,787 posts, read 10,025,973 times
Reputation: 12686
The boyfriend should pull his credit score and find out what it is and just what is on it. Hiding one's head in the sand is not helpful. Once he knows what's there, then he can also start figuring out how to improve his credit score.

FHA does not really have a minimum credit score. However, lenders are allowed to set a credit score for FHA loans that they like. Right, the great majority are looking for around 640. Not every place but most.
Those that may go below that score may want something in return, like a larger down payment.

His problem is credit. Your problem is work. You've got basically half a year filed for 2011, a year filed for 2012 , and a little bit for 2013. It doesn't sound like you worked prior to 2011. And your wages seem to go up and down ?

Combined income will get you a house in your price range. But you have some things to overcome. Yes, you should sit down with at least one lender. Put your info on the table and then be guided by what you're told to fix or improve upon whatever so you can get a house. There is nothing to be afraid or worried about. You need someone to take a look at your incomes, your debts, your credit and explain to you how to prepare yourselves to purchase. You can't do it on an internet forum.

There may even be local programs for first time buyers that may help with closing costs, down payment assistance, rehab costs, etc. Seriously, get yourselves into the loop so you can find out about these things. Ask questions, research. If you can't purchase now, then you have something to work toward in what may be the not too distant future. Can't fix things unless you know what needs fixing. Good luck
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Old 04-11-2013, 02:07 PM
 
Location: Marshall-Shadeland, Pittsburgh, PA
31,285 posts, read 69,873,080 times
Reputation: 16942
Quote:
Originally Posted by DCmum View Post
I think it will come down to how bad his credit is, for FHA loan, I think each applicant has to have a 640 credit score but they are more lenient on the terms, sketchy employment and so forth, the only way to know is talk to a lender, and don't be embarrassed, they have probably seen worse and will tell you what you need to do, work on if you don't qualify, that's what they are here for. Good luck~
Thanks. I've always been a very proud person. Even when times were very tough for me financially I would skip meals, work two jobs, and hide the struggles from relatives so they wouldn't try gifting me money. I suppose this is why I fear walking into an office of an individual who may laugh me right back out of the office. We pay $700/month in rent and could easily find livable homes with monthly mortgage obligations much less than that around here.


Quote:
Originally Posted by willow wind View Post
The boyfriend should pull his credit score and find out what it is and just what is on it. Hiding one's head in the sand is not helpful. Once he knows what's there, then he can also start figuring out how to improve his credit score.

FHA does not really have a minimum credit score. However, lenders are allowed to set a credit score for FHA loans that they like. Right, the great majority are looking for around 640. Not every place but most.
Those that may go below that score may want something in return, like a larger down payment.

His problem is credit. Your problem is work. You've got basically half a year filed for 2011, a year filed for 2012 , and a little bit for 2013. It doesn't sound like you worked prior to 2011. And your wages seem to go up and down ?

Combined income will get you a house in your price range. But you have some things to overcome. Yes, you should sit down with at least one lender. Put your info on the table and then be guided by what you're told to fix or improve upon whatever so you can get a house. There is nothing to be afraid or worried about. You need someone to take a look at your incomes, your debts, your credit and explain to you how to prepare yourselves to purchase. You can't do it on an internet forum.

There may even be local programs for first time buyers that may help with closing costs, down payment assistance, rehab costs, etc. Seriously, get yourselves into the loop so you can find out about these things. Ask questions, research. If you can't purchase now, then you have something to work toward in what may be the not too distant future. Can't fix things unless you know what needs fixing. Good luck
Thanks. I've actually been consistently employed since I was 16. I've just been a "man of many hats". I've worked at a grocery store, home improvement store, for the Feds, for a gift retailer, for a large bank, and now for this delivery company (just received a promotion today to manager, which further complicates my employment history). In some cases I worked two of these positions concurrently over the past ten years. There's never been a gap in my employment history or my earnings history. I just presumed lenders would be squeamish because while my partner has been at the same employer for about four years since graduating college I've worked everywhere except the coal mines! LOL!
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Old 04-11-2013, 02:50 PM
 
969 posts, read 2,049,872 times
Reputation: 559
You don't need to walk into an office. You can do the application online, there are a lot of FHA approved lenders online, go on the FHA approved list of lenders for your state, find a lender and do their online application, they will call you if they need more information and will let you know if they need any additional info, so you don't ever have to see them face to face
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Old 04-12-2013, 05:09 AM
 
Location: MID ATLANTIC
8,144 posts, read 20,003,661 times
Reputation: 9382
I would not recommend online, blindly. I would speak to a specific person and then if they have a website go there. The problem is, if you go to a Lending Tree-type website, you could have 14 pulls on your credit by the end of the day, just because you clicked "yes" somewhere. And then, another 7 tomorrow - all legal. I never recommend online without first a verbal discussion. Ask them specifically, "will there be more than one credit pull."

The majority of the lending out there requires a minimum of 620 on the score, while FHA allows down to 585 (with restrictions). It's been my experience you really need a 640 these days to have a halfway decent experience and decent rate.
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