Home Buying in McKinney>Question Details

Rhonda, Home Buyer in McKinney, TX

Hi, My husband lost his job and I am a stay at home mom. We have no debts but currently no income other than UI. We have about $20,000 we

Asked by Rhonda, McKinney, TX Mon Jun 21, 2010

could use for a downpayment and want to find a foreclosure in McKinney under 100,000.

He can probably change jobs (auto mechanic now) but he'd rather wait until unemployment is out.

My dad would co-sign but I don't want that. Our credit score is about 620.

Rhonda Lee

Help the community by answering this question:

Answers

6
RL,

Unfortunately, with no current income, and a lower credit score, even having a good down payment and no debts is not going to make you appear to be a good risk from an underwriting standpoint. There are a coupe of programs for 1st time buyers, and FHA is stlil the least expensive option as far as down payments go, but your husband really needs to find employment in his field. Even with a short time off, as long as he has at least 2 years employment in the current auto repair field, is pretty much a necessity. A job change to something totally new would start the clock over.

You didn't mention if you are first time homebuyers, or haven't had a home for at least 3 years. That info would help.

Contact a qualified realtor for the McKinney area and see what he or she says. I am not very familiar with that area, working in west Frisco mostly, but there should be answers from others who could advise you.

Randy Spain, Realtor
1 vote Thank Flag Link Mon Jun 21, 2010
i just reread your post. It appears you are not trying to find work since you are receiving UI. You may want to change your strategy if you want to buy soon.
1 vote Thank Flag Link Mon Jun 21, 2010
No job, collecting unemployment, NOT looking for a job and looking to take on a mortgage? Nobody would sign off on a loan with that scenario.
0 votes Thank Flag Link Mon Jun 21, 2010
Rhonda,

Dont think you should be buying a home considering he is unemployed and you do not work. You won't get a loan anyways, but that mentality is not a smart one.

Also you want to focus on raising your credit score so you can get a better rate.


Sean
0 votes Thank Flag Link Mon Jun 21, 2010
I also think you should wait. Qualifying on UI is not likely. Work on getting your score higher or, even keeping your score as high as you can. With your financial situation facing so many unknowns, it's not a good decision (in my opinion) to purchase now.
0 votes Thank Flag Link Mon Jun 21, 2010
Before considering any mortgage loans--it's probably in your best to wait until your husband has found employment--however, you may wish to consult with any qualified loan officer, see if you do qualify for a loan and how much-- and have your credit score checked, as their scoring is often different. Currently FHA loans do require a minimum score of 620 and 3.5% down.
0 votes Thank Flag Link Mon Jun 21, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer