Dear Pam the short answer is yes you can as long as you are credit worthy. Also please know that good qualifying ratios for a loan are 28% of the housholds gross income for housing payment (inclusive of principle, interest, taxes & insurance) and total debt ratio of 36 - 40% (inclusive of housing payment & other debt payments) Normally a household can borrow up to 3 times the gross income of such. This would be considered a comfortable amount.
Pam may I suggest you have at least 3 months of mortgage payemnts saved and available to you after you get done buying the house. This would be your safety net and take some stress out of the lives. Good luck and if you have additional questions please just post them.

Hello! This all depends on your credit and debt to income ratio. The best step to take is to contact a lender that can look at your credit and situation and let you know what you need to do in order to buy a home in the future. The lender I would suggest would be Beth Roos at PHH Mortgage. She is very good with over 17 years of experience. Her number is 229-291-4396, of course you can contact any lender that you choose. If you have any other questions and when you are ready to buy, I would be happy to assist you in purchasing a home! http://www.era.com, 229-809-0494

Most lenders will use a 28/36 debt-to-income ratio.

The first number, 28%, also known as the “Front Ratio” indicates the percentage of your income that can be allotted for housing expenses. This will include your Principle, Interest, Taxes & Insurance and if applicable any Mortgage Insurance Premiums (PMI) and Condo Fees/Association Dues.

The second number, 36%, also known as the “Back Ratio” indicates the percentage of your income that can be allotted for housing expenses plus any other recurring debt. Common recurring debt will include payments such as: credit cards, car, student loans, child support, etc.

These are the typical ratios that lenders use, however it can certainly vary by lender depending upon their lending standards & practices. Your best bet would just to talk with a lending specialist to see if you can qualify. The pre-approval process is usually free with no obligations. As long as you have good credit and are able to support the debt with the income - you should be ok. But again, check with the lender first. Good luck!

First step is to get in touch with a good mortgage broker...one who can look at your entire credit picture and who knows what programs lenders are offering. It may certainly be possible to buy now. However (and I have no idea of the rest of your financial picture) it might be advisable to wait a bit, pay down the credit card debt, and have your husband establish a bit of work history at his new job. Even if you can buy now, you may find "better" mortgage products if you pay down the credit, etc.

Rent-to-own, as suggested by a couple of others below, is also something to consider. However, despite one comment below, it is not necessarily more expensive than buying. In fact, it can be quite a bit less expensive than buying, depending on how it's structured. If you're paying the same for a lease-option as you would with rent (in today's market, that's not difficult to negotiate), you receive a reasonable option credit (let's say $400 on a $1,800 monthly payment), and you lock in today's price (or lower) with a 2-year or 3-year option, you'll find your cost is far less than if you buy today. Just something to consider.

Good luck.

Hi Pam,

Your scenario is not out of the ordinary in today's society. My company is familar with the Albany area and has flexible mortgage programs. Believe it or not there are still some reliable lenders remaining in business that can help with your parameters.

I would appreciate the opportunity to review your situation and advise you accordingly

Pam,

I want you to check out this website http://www.naca.com. I have a client going through this program and I think it is just fantastic. She invited me to go to a meeting with her a few nights ago and I was so excited because I had clients that I knew this would benefit. This program offers no down payment, no closing cost, no perfect credit, 30 year fixed rate, and the rate as of today is 5.25. And the best part of it is they will never let you foreclose on your home.

Please let me know what you think!!

Rent-to-own may be a good option. It's a little bit more expensive than buying outright though.

Hi Pam, Chase Home Loans does work with all credit types. Please let me know if you would like to discuss your situation further. I can recommend some programs available for your situation. Thanks

Are you current or behind on payments on your credit card debt?

If you are current and you credit score is decent you can still get financed.

What does the rest of your credit look like?

Dear Pam,

Unfortunately these days a good percentage of people are living in credit card debt, it seems like that is part of our society. I would reccommend that you stop using your cards immediately and take the next six months and concentrate on just paying off these debts and make sure your payments are on time. You would be surprised how you can change your credit ratings within just six months as long as you have no late payments. The last thing you want to do is go and buy a house and then find out you are so strapped that you lose your house. It sounds like with your husbands great job you will be on your feet again in no time. If you still want to try to purchase a house now then contact a few different lenders, don't stop at one. Shop around and do your homework.

Here are two lenders that I work with if you would like to call either of them you are more then welcome, and they are both great to work with.

1. Suntrust Mortgage - Speak to Kevin Nolan @ 770-826-0468
2. GMAC Mortgage - Speak to Kay Clark @ 404-514-1750

Good Luck with everything!

Diane

Try owner financing or rent to own ads in the newspaper. They typically help people in your situation.

Hi Pam. I would get in touch with a loan agent who can pull your credit. That would be my fist step. If your credit score is not good enough to get a decent rate, the loan agent can refer you to a credit repair service that can help you improve your credit score. Not all debt is equal. For instance, if you owe all of the $20,000 on one credit card that is maxed out, that's worse than owing a total of $20,000 that's spreach over several credit cards as long as you haven't maxed the all out. For instance, if you have a $20,000 credit limit on two credit cards, you'd be better off owing $10,000 on each than $20,000 on one.
Credit score and debt to income ratio are important factors in determining your financial qualification. Thus, if you husband has a good job and sufficient employment history with the new employer, your qualification will depend on how much you spend every month on debts vs. how much your monthly income is. The monthly payment on the $20,000 is probably less than a car payment. What hurts people the most in my experience are huge car payments. My recommendation would be, don't make any credit purchases now as it will affect your qualification for a loan. Some home buyers go out and buy a new car while they are in escrow and then on the day before closing, when the loan company pulls their credit again, they find out that the loan company refuses to give them the loan because their recent car purchase changed the debt to income ratio. Good luck and I am glad your husband was able to get a good job again.

Pam,

You should talk to a lender about your financial situation. I work with Brent at Living Proof Mortgage. He handles credit counseling as well as getting you a loan to fit your situation.