poor credit first time home buyer
Can we qualify for a home loan?
My husband has poor credit and since he’s starting his own business, does not have a strong work history. I have very little credit and have debt from my school loan. Those are the negatives. Now the positive is that my husband can use his veteran home loan. I have an MBA, so I can probably get a decent job, but right now I’m taking care of my two young sons. One of them is only a month old.
I really want our own home and I dont want to move out of california.
My husband thinks we need to have 2 years of solid work history to qualify for a loan, but he’s a vet and we are both first time home buyers.
Anyone have helpful information and real estate knowledge?
You husband is correct you normally need at least 2 years of work history and income you can prove over a 2 year period with third party evidence such as federal income taxes, w-2, 1099 income or other documentation that in acceptable in the mortgage industry.
The other thing that is a negative is “starting his own business” this is normally income that can not readily be proved. Your husband want as many deductions as he can get on his income tax, so he takes all the deductions allowed. This causes his income to be low if he takes all the deductions he is allowed.
There are some put backs as the mortgage industry calls it, so some of the things your husband deduct can be added back as income even though he might have deducted it as an expense on his income taxes. So all is not really lost.
Since he is a vet, I would suggest that you look in your local telephone book find a mortgage broker that do government loans FHA and Va.
Call them, tell them your story and see if they can legally qualify you for a FHA or VA loan. The loan amounts were increased this year for those of us that reside in California. The limits are only for this year, so in Dec the limits are suppose to go below $450,000 again. Now both you and I know there is nothing in California around that loan limit that is a desirable place where we would want to live.
There will be other documentation required by the mortgage banker you speak with, but I am gonna give you a few of the documents you can start out with.
A. Your husbands DD214
B. Any proof of your husbands income (Ask the mortgage banker what is acceptable to him)
I hope this has been of some use to you, good luck.
“FIGHT ON”
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