Financing in Carrollton>Question Details

Karen, Home Buyer in Arizona

We work in AZ for the NPS 6 mos out of the year. Have been turned down for a loan because we have no income in GA? ANy solution to this? Credit good.

Asked by Karen, Arizona Wed Oct 13, 2010

My husband and I work for the NPS in Arizona as seasonal employees. We make enough money and have good enough credit to qualify for a loan, but were turned down for a loan because we have no income in Georgia, where we want to buy a house. We live in govt housing while working. We want to buy a small house in Georgia, where we are from, so we can live there in our off season, near our children. Is there any solution to this? Are there any lenders who will finance us? We found a small 2 bedroom house on 2.2 acres in the community we want to live in, for a price under $30,000. How do we get financed under these circumstances?

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James Dudley’s answer

Any home loan under $50K is a challenge regardless of credit.

Your other residency status is an additional risk.

You should consider Cash or getting a unsecured loan from your bank. Interest rates will be high for these types of loans, but it's one of your only options in my opinion if you can't pay cash.
0 votes Thank Flag Link Thu Oct 14, 2010
Most the responses are correct. First you can get a loan. You need to be buying this home as a 2nd home, not as a primary residence. Same interest rates, so that should not scare you away. You will probably need to go conventional financing, and you will need to talk with a local bank in GA near the property you want to buy. If your credit and income ratios work, it should not matter that your work is "seasonal" as long as you have at least a 2 year history and tax returns supporting enough income to qualify. Our minimum loan amount we can do for example is $50,000, so that is why we are all telling you that you need to call a local bank. I would first start with a branch of the bank you currently have your checking and savings accounts with, then next step would be a local credit union in GA. You may have to open a checking account to transfer the mortgage payments from, but that should not be a problem today in the world of electronic banking.

Good luck to you!
0 votes Thank Flag Link Thu Oct 14, 2010
Robin hit it right on target. FHA allows for seasonal income to be used when buying a house but you will need to make GA your home state and work in AZ during the on season. As Robin mentioned, $30k is too small a loan. The predatory lending laws don't allow certain lenders to lend that low amount. You may have to go to a community bank or credit union. The strategy will be to take the guidelines with you and show them that you do qualify. If you'd like I will also check around some local banks for you and see who can help. Just send me your email from my profile so I can send you information.
0 votes Thank Flag Link Thu Oct 14, 2010
We don't own another home. We have only contacted one lender--we were referred to them by a real estate agent when I called to ask question about the house. The lender stated that they could not finance for us because we do not have income in Georgia. He said otherwise, our credit looked good. I don't know how to remedy that unless we were to move in with our daughter, get a job, and then re-apply for a loan. However, that is not a good solution for US.

We own an RV, and live in it in the off season. We want to get a house now, but it seems silly to require us to pay 20% down just because we have an RV. How are people buying the inexpensive houses that are all over the place now if no one will finance under $30,000. We are trying to stay living within our means, but this experience has proved to be frustrating.
0 votes Thank Flag Link Wed Oct 13, 2010
Your problem might be that no one wants to do such a small loan. Also, are you looking for an FHA loan, or do you have 20% to put down? If you are trying to do this as a primary residence, that could be your problem, because even though it is the only place you own, it still doesn't make it your primary, it's a second home.
0 votes Thank Flag Link Wed Oct 13, 2010
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