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Hi everyone. Thank you for taking the time to read and help me out. We would like to go to a lender in April or May and see if we can buy a house. There are houses in our area that are $100,000 - $150,000 that financially we could qualify for.
Our credit scores are in great shape, upper 700's, low 800's. Although I do wonder if it would be better to have only 1 account each hitting our score, or 0?
We would like to get a single family house, primary residence.
We are both first time home buyers.
We do have the money for an FHA 3.5% down payment.
We also have $2,000 we keep in the bank for reserves. No savings. We do have alot available on our credit cards if an emergency arises.
I have run a few different loan calculators with income/debts/etc so I have a rough idea of what we can get approved for.
What I am most concerned about is whether my husband's current time on his new job would be acceptable.
Husband's most recent past jobs:
My husband was a school bus driver for 2 school years. This job was part time. June 2015-August 2017. This is "W-2" income.
My husband also worked part time elsewhere as a freelance handy man for 2 1/2 years. We have declared all of that income on our taxes as self employment for him. But it is not "W-2" income. Jan 2015-August 2017. We have 3 years now of taxes showing this, but he is no longer doing this.
Husband's current job:
My husband quit those other 2 jobs to accept a new full time position. He gets paid hourly. We moved to a new area. He is still a school bus driver, which would of meant only a part time position, but the company also employs him to work in the shop fixing buses/maintenance/etc. He clocks on once in the morning, then switches back and forth between the 2 jobs as needed, clocks out at the end of the day.
My husband is guaranteed full time year round work with this company. When school is in session, he usually winds up getting an extra 1 1/2 - 2 hours overtime per day. I know we would not be able to count the overtime unless there is a 2 year history, which is ok. August 2017 - present. This is "W-2" income.
My question is this: I know lenders will be ok with a new job if it is in the same field. But since he was only part time at the first school bus job, will they let him piggyback the new school bus/mechanic job?
Or will we have to wait until he has been on his new job for 2 years before we can get approved?
The current job seems more dependable. My guess is that the lender will go with current income and credit score along with the fact that your credit card debt ratio to available limits is rather low.
It doesn't make any sense for strangers on the internet to speculate when all you have to do is go to your bank or credit union for a preliminary evaluation.
A word of caution. You need a lot more in reserve than $2000 just to survive what life throws at you. And NEVER rely on credit cards for emergency funds.
Hi everyone. Thank you for taking the time to read and help me out. We would like to go to a lender in April or May and see if we can buy a house. There are houses in our area that are $100,000 - $150,000 that financially we could qualify for.
Our credit scores are in great shape, upper 700's, low 800's. Although I do wonder if it would be better to have only 1 account each hitting our score, or 0?
We would like to get a single family house, primary residence.
We are both first time home buyers.
We do have the money for an FHA 3.5% down payment.
We also have $2,000 we keep in the bank for reserves. No savings. We do have alot available on our credit cards if an emergency arises.
I have run a few different loan calculators with income/debts/etc so I have a rough idea of what we can get approved for.
What I am most concerned about is whether my husband's current time on his new job would be acceptable.
Husband's most recent past jobs:
My husband was a school bus driver for 2 school years. This job was part time. June 2015-August 2017. This is "W-2" income.
My husband also worked part time elsewhere as a freelance handy man for 2 1/2 years. We have declared all of that income on our taxes as self employment for him. But it is not "W-2" income. Jan 2015-August 2017. We have 3 years now of taxes showing this, but he is no longer doing this.
Husband's current job:
My husband quit those other 2 jobs to accept a new full time position. He gets paid hourly. We moved to a new area. He is still a school bus driver, which would of meant only a part time position, but the company also employs him to work in the shop fixing buses/maintenance/etc. He clocks on once in the morning, then switches back and forth between the 2 jobs as needed, clocks out at the end of the day.
My husband is guaranteed full time year round work with this company. When school is in session, he usually winds up getting an extra 1 1/2 - 2 hours overtime per day. I know we would not be able to count the overtime unless there is a 2 year history, which is ok. August 2017 - present. This is "W-2" income.
My question is this: I know lenders will be ok with a new job if it is in the same field. But since he was only part time at the first school bus job, will they let him piggyback the new school bus/mechanic job?
Or will we have to wait until he has been on his new job for 2 years before we can get approved?
Me:
SAHM
Thank you.
If the employer will assert, in writing that he is guaranteed a minimum 40-hour workweek, then that income will be used in full, and paystubs will be used to support it.
The calculation will be: Hourly Rate x 40 x 52 / 12 = Monthly income.
Why are you going FHA? There are excellent conventional programs that do not have the lifetime PMI. Make sure your loan officer explores all of your options, including State Bond Programs. If the loan officer doesn't have the product and won't explain why you cannot go conventional, keep moving to the next loan officer. FHA should not be the 1st program of choice for a low down payment loan for the first time buyer.
FALSE! You can go conventional with as little as 3% down.
What state are you in? I will see what I can dig up for you, but whoever is feeding you information, stop listening to them. Now.
How do people with few assets/money in the bank/single low income household qualify for 3% down conventional loans? The OP sounds very much in FHA territory to me(?)
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