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I have relocated to Florida from Minnesota due to a job offer and us wanting to get away from the MN winters. I have been in Florida for 2 months while my wife sells our house in MN. We are under contract and I would like to get a house down here set up, but it is looking like I cannot count her income until she finds something down here (she has 9 years experience in her job field). Is that correct? I know Fannie won't use trailing spouse income, but it sounds like Freddie may. I can't find much info on it though.
We also racked up the credit cards really bad finishing our house as we were in the middle of a renovation when this job offer came through. They will be paid off when we sell our house, close date is end of August. My credit score is around 650 right now, but was 730 before adding the CC debt.
Is it worthwhile to even try and get a loan for a new house right now or should we rent for a bit after our house sells until my wife gets a job and my credit score goes back up?
Trailing spouse income doesn't exist anymore but you can use future income. You can use your wife's income once she has a non contingent/ non revocable offer of employment. You would be able to do close on your home before she starts on her job, you would just need to provide her first pay stub post closing. You would need to time it so she gets her first pay stub within 30 days after you closed.
JET, slow down the train! You will be so much happier. 650 will not get you a great rate, not like a 730 score. Get the other home sold, get your wife in Florida and employed. Pushing it is going to do nothing but set you up to fail. The scores will pop up about 30-45 days after the credit cards are paid. Your impatience will bite you in the rear, every time.
I know, we've heard the excuses, move twice, having to pay rent, relocate kids in schools....buying before you are ready is a short term fix with long-term consequences.
Thanks everyone, that is the way I am leaning is to wait. My problem is that Orlando doesn't have short term rentals except for vacation rentals because you get charged a 20%+ fee for doing under a 12 month lease and you need special licensing and all kinds of stuff. We also didn't want to change schools for the kids mid-year either. Having 2 dogs doesn't help in trying to find rentals either. Fun stuff!
What's wrong with waiting a year? It can take your wife many months or a year to find a decent job. It also gives you time to explore the area and find someplace you really like. As for the dogs, look to rent a small house rather than an apartment. Or ask on the FL forums if anyone knows complexes that take multiple pets.
I definitely don't want to wait a year, but we might put off the closing until Xmas time. We were attempting to get in to a place before the school year so we did not have to move the kids. There is one place I may still try for now just because it is a great area and houses very rarely come up for sale there. I will probably do a VA loan to make it as easy as possible even though there are some extra up front fees. If we don't get that house I think we are going to wait and do a short term rental. Thanks for the advice all, it is appreciated!
Will you have anything left for down payment after paying the bills? VA is a great tool, but if you are going no money down again on a VA, look for a 3.3% Funding Fee. If you can put something down, those fees drop. And if your score pops over 740, you can do a no MI conventional with 5% down. Why is it important to avoid the 3.3? Let's be brutally honest, you are rushing the purchase (before school year) and I can show you over and over that must buying mistakes (or disasters) are done in a rush. I even had one buyer in a home for 30 days when they were robbed at gunpoint in their own home. They bought FHA, 3% down, and even with their Realtor taking a hug hit on sales commission (many would not do this, it was not in an area just beginning to spike in the crime rate). My point being, the contract the ultimately negotiated to get out was either a short sale or bring $4000 to the table. My point is, going NMD and adding 3.3% to your loan, immediately puts you in a box of being stuck if you need to get out. Only go with a add-on of a FF or MIP if you have taken your time looking (and investigating). Do your due diligence and don't rush it for a school year. Had my prior customers looked a bit closer, the could have seen a spike in crime rates for this neighborhood.
But last I heard, VA doesn't allow for a trailing spouse. But those FF do drop with down payments. I'm a big fan of putting as little down in a purchase, but not when in a rush. That's a recipe for disaster. Renting short term will appear penny foolish if you buy the wrong house.
Well the good news with VA there is very little hit to pricing/rate with low ficos (at least with my bank)
Great option, If you dont have at least 10% VA related service disability the funding fee is 3.3% or 2.15 if you are a 1st time VA user . The funding fee is not that bad when you can buy a home with 0% down and a rate below what anyone else can get. You can also have the funding fee paid by lender or seller so if you don't like the house you wont have to worry about it if you sell. I would also have the seller pay the closing costs and have that negotiated into the sales contract. Seller can pay up to 4% of the contracted price. So technically you can buy a new home with zero down as long as the sales price can generate the closing costs and the lender ca premium price the rate to cover all the costs, Florida is not a cheap state to buy a home, state tax stamps are a killer!
If your wife can get a job letter VA does allow this. Same field of work, full time.
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