How do I get a loan with excellent credit, large down payment, co-signer yet only have had job for 10 months?

Asked by klswrs, Sacramento, CA Mon Jun 10, 2013

I was a stay-at-home mom for 9 years and wasn't prepared for a sudden divorce. 1 Bank said I don't have enough credit history and made too many inquiries about mortgage pre-qualification. My name isn't on the title or mortgage for the home I'm in now but I'm getting half the equity. I don't want to pay $700-$1000 rent a month for a year (since underwriters look at 24month incomes) when I can do $250-$300 a month mortgage because of my large down payment.

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Sue Archer Reynolds’ answer
Sue Archer R…, Agent, Palm Harbor, FL
Tue Jun 11, 2013
Making a plan is the first step and a lender would know best how fast you can qualify and for what amount.

I might also suggest that you work with Heather at Blue Water Credit to have her advise you on the fastest way to build your credit history. She can be reached at (916) 315-9190 or

You may find that investing your proceeds, and paying rent WOULD actually work in your favor so there's more analysis to do on that topic. Don't rule it out, but consider all options.

good luck to you!
0 votes
klswrs, Home Buyer, Sacramento, CA
Tue Jun 11, 2013
Thank You all so much for your help!
I was a retail sales manager before stay-at-home mom, now I work part-time at a middle school cafeteria, I do have a letter confirming I still have a job after the 2 month summer break.
A few people who could co-sign for me have had jobs for years, my ex offered and he makes 100,000$ a year. He was told to get his loan for his house he's building first, then he may be able to co-sign. (I don't think he will be a good co-sign option)
I've been working the part-time job and taking online classes for Digital Arts in hopes of another job soon.
The divorce is final, I do not receive the equity until the house sells, of course, also, I won't receive Child Support and Spousal Support until the house sells.(As Ex is paying for mortgage and utilities as supplement for Child Support/Spousal)
0 votes
also, I live in Indianapolis Indiana area (when making profile I didn't change the automatic zip)
Flag Tue Jun 11, 2013
Sue Archer R…, Agent, Palm Harbor, FL
Mon Jun 10, 2013
Education, and work history, including being a mom, can qualify towards the time in any current employment if you can demonstrate its the same line of work. Otherwise you will have to wait.

Sometimes the lender rules aren't fair.
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, ,
Mon Jun 10, 2013
Do you have any income source now? The underwriter will require you to have a way to pay the loan.
Also, is your divorce final? That will be another question the underwriter will ask...
Please feel free to call me to discuss!

Geoff Prettyman
NMLS: 459613
0 votes
Jaime Becker, Agent, Sacramento, CA
Mon Jun 10, 2013
It would be best to talk to a lender who will be able to guide you a little bit more through the process. Sometimes banks don't have that kind of service. It's best to talk to someone who can really explain the process to you and what you may need to do or what needs to happen in order for you to qualify for a loan.

If you need a reference for a lender I would be more than happy to help you.

Jaime Becker
Lyon Real Estate
Off: 916-484-3610
Cell: 916-715-7454
DRE# 01737783
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Joseph Scroc…, Agent, Wildwood, NJ
Mon Jun 10, 2013
stay at home mom counts towards your work history. your lender should be able to obtain a written verification of employment from your current lender stating what your current salary is when you were hired and the probability of continued employment. You wont be able to use bonus or over time income only base income (base salary or hourly rate). Your divorce paper work should confirm that your duties as a stay at home mom is what you did for 9 years. Although it is non salary job it is a job and counts. This is where many underwriters and loan officers fail to understand the underwriting guidelines. On your mortgage application under employment you should include your prior employment as a stay at home mom. Also, a strong explanation letter showing that your ex husband was earning sufficient income to allow you to stay at home and raise yoru family will help.

with excellent credit and a large down payment as compensating factors you should have no problem getting approved as long as you document everything. do not go to a hard money lender.
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Jamie Collins, Agent, Fair Oaks, CA
Mon Jun 10, 2013
You have a few options.

Has your current loan officer said that you could not obtain a loan today?

Please call and I can have one of the loan officers I help, help you.

I will help even if you alreay have another Real Estate Agent.

Thank you,

Jamie Collins
Over 24 years of experience
in Real Estate Services
Sales / Insurance / Mortgage Training
Connect Realty Inc. (Real Estate Sales)
J.E. Collins Insurance Agency
Home-Auto-Umbrella & Toys
916-257-3779 direct
877-810-2763 fax
Dept. of Insurance # 0H71400
Dept. Real Estate # 0104820
0 votes
George Raymo…, Mortgage Broker Or Lender, Fort Worth, TX
Mon Jun 10, 2013
You have a tricky case for sure. Most Underwriters will be looking for a 24 month work history for any borrower today. Having said that, you are a text book example of the type person I have been able to help over the years. I assume at some point you had a previous job or career? And if so, you should have a least a 14 month previous work history?

All we require is proof that you had gainful employment prior to your maternity and the new job can be tied together, meaning you are in the same type of industry. It would really help seal the deal if you were on salary not hourly. If you are paid hourly you could be income averaged over the 24 months unless you can get a "At-A-Girl Letter". Something like:

To whom it may concern,

Although Mrs Smith has been with this company a short time, she has proven herself to be a valuable, trustworthy, and reliable employee. She is currently employed as a ______, and she is required to work a minimum of 40 hours a week. Her continued employment is excellent.

With a strong letter from the employer, I am sure can get a home loan having been on your current job less than a year. As far as credit, we and some other lenders do not require a minimum amount of tradelines reported on your credit, but do require a minimum 620 middle credit score. Inquiries are immaterial and can be explain as you have been shopping for home loan.

Hopefully this information has been helpful.

Best of Luck!
0 votes
Eddie Martini, Agent, Auburn, WA
Mon Jun 10, 2013
WHat does your co signer have for employment history?
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Bobby Crow, , Savannah, GA
Mon Jun 10, 2013
It would be possible, but with supporting circumstances...

Along with your hefty down-payment, a lender might want to see enough cash reserves to make up for the lack of employment history... but, even with a down-payment, and cash reserves, your income would need to support the size of the monthly obligation...

Talk to a local lender that corresponds or brokers with several different institutions and investors... If you are having trouble with a particular lender (bank in this case) it could be due to their particular lending "overlays" (criteria to lend), but you could be eligible through another lender...
0 votes
Claudia Mull…, Mortgage Broker Or Lender, Fremont, CA
Mon Jun 10, 2013
The first question I would ask you: what is that you are doing for work?
Is this a job with which you have had previous experience?
You say you have a co signer. Does that person qualify alone? If so, you should be able to be on the loan with them.
Do not have nay more credit inquiries pulled. They should go away after 90 days.

email me with specifics:
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