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Old 12-02-2007, 08:53 AM
 
251 posts, read 1,315,414 times
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Howdy all...hypothetically....what would be the bare minimum needed to qualify for such a mortgage with no money down, mediocre credit and one spouse not reporting all of his income....the other approximently 3500 a month? I say it can't be done. They say because they pay 1800 a month in rent they can swing it. They are still paying off a vehicle and planning to buy a new car and a baby on the way....so they want more room.

I say with all the tightening no lender will touch them.
Thanks in advance.
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Old 12-02-2007, 04:13 PM
 
251 posts, read 1,315,414 times
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So I take it as there has been no responses, that you all think like I do!
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Old 12-02-2007, 05:43 PM
 
Location: NC
1,268 posts, read 2,336,812 times
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If the mortgage amount is $400k, it would be very difficult to do. FHA deals with mediocre credit but there are limits on how high an FHA mortgage can go, depending on where in the country you live. Still, let's assume an mortgage of $400k...at 6% the principal and interest payment alone is about $2400 and that's not counting mortgage insurance, hazard insurance or property taxes.

Last edited by ChipL; 12-02-2007 at 05:54 PM.. Reason: re-read the heading
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Old 12-02-2007, 06:21 PM
 
251 posts, read 1,315,414 times
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That's what I thought....and I doubt they'll see 6%. I just wanted to make sure I wasn't way off base....as I started reading here where there were still some seemingly flexible mortagages going around. Of course, it's their lives....so whatever they do, they do...I was just trying to be a good friend and try to soften the blow in advance. Thanks for responding.
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Old 12-02-2007, 06:46 PM
 
Location: NE Florida
17,833 posts, read 33,199,771 times
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7% will run about $2660 a month plus taxes and ins. Not to mention if there are HOA fees
I have a feeling they maybe looking at over $3k a month This would be a minimum difference of over $1400. a month.

As a friend you might want to gently suggest they find out the taxes and ins for that priced house in the area they are looking add it to the $2660 if they can get 7 % and that they "pretend" they are paying out that much each month. Put the difference in a MM savings account. They will learn pretty fast if they can do it, and the nice thing is they will have a nice savings account after a few months.
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Old 12-03-2007, 05:11 AM
 
Location: Looking East and hoping!
28,227 posts, read 21,903,636 times
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With one spouse not reporting income-they would have to go with a "no-income verification" loan-higher rate, must have excellent credit, assets-i.e. savings.
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Old 12-03-2007, 12:23 PM
 
9,124 posts, read 36,483,147 times
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Based on the down-and-dirty guideline of +/- 3x income for your mortgage amount, they'd want to show around $135k in income. They're currently showing $42k, so they're just a wee bit short. Of course, three years ago some bank would have been stupid enough to write the deal, but that's not happening nowadays.
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Old 12-03-2007, 05:44 PM
 
69,368 posts, read 64,314,931 times
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Quote:
Originally Posted by BobKovacs View Post
Based on the down-and-dirty guideline of +/- 3x income for your mortgage amount, they'd want to show around $135k in income. They're currently showing $42k, so they're just a wee bit short. Of course, three years ago some bank would have been stupid enough to write the deal, but that's not happening nowadays.
If only I was buying deals 3 years ago..

I know a guy who got a 180 unit property in Texas back during the S&L Scandal.. $0 down, 0 credit checks, no payments for 6 months, and the property was actually 70% rented at the time.

I bang my head against the wall when I think about those times I missed.. (due to age)..
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Old 12-05-2007, 08:33 AM
 
3,695 posts, read 11,402,454 times
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Tell them to call in to the Dave Ramsey show with that question.
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Old 12-18-2007, 07:58 PM
 
251 posts, read 1,315,414 times
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I just wanted to thank you all for your replies and apologize for being so late in responding. I have dropped hints about some of the info from here to my friend but it seems to be falling on deaf ears. I don't know what it is with these young people these days....they think they can have everything.

So I guess I will be there with the coffee and the tissues and try not to say I told you so. I continue to learn alot here for managing my own future, which won't have a house included for awhile unfortunately, but I think it is great how people contibute their time here and clear up these 'mortagage mysteries'.
Thank you.
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