How hard would it be for a newly self employed person and a house wife to get a FHA loan?

Asked by Rochelle Wade, San Antonio Road, Austin, TX Mon Jun 25, 2012

I have a credit score of 667 and my husband has one of 660. My husband has recently quit his job to start his own business and I am a house wife. Our debt besides rent comes out to a total of about 8000. We have consistently paid our rent on time where we rent which is 706 a month. I was wondering how hard it would be for my husband and I to get a loan of around 100,000 when we start to look for a house.

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8
Greg, Both Buyer And Seller, San Antonio, TX
Thu Jun 28, 2012
Hi Rochelle,
I have several houses that I offer "non-qualifying owner financing" (which simply means: We'll finance you Today based on 1. -your good rental history, 2. a reasonable down payment, and 3. -your agreement to enroll in our [or any other accredited credit repair program]) and thats it!...Keys to your own home. We have homes in which we'll act as the bank and give you approval and provide financing for anywhere between 4 to 15 yrs, giving you opportunity to "pay down" that $100K balance (just using that $100K you mentioned), so at the end of the term you've paid down that $100K or so balance, + you will have hopefully wiped out that $8k debt you now have + you would have had a chance to establish your business, so now when you go to your lender to apply for that loan - - you won't be asking your lender for $100k, but you'd be asking for much less (depending on how soon or later you go to refinance). This is how I purchased my personal residence back in 2000, (the seller was a real estate agent that offered owner financing--my wife & I came up with the down payment the seller was asking for and we got the house--no particular credit score was needed & we weren't really established on our jobs back then. I still currently own & reside in the home and am blessed to say that we've paid the balance down to about $23k now. This inspired me to get into the real estate business (3 yrs ago) so that I too can offer the same blessings & opportunities to others. Well, enough of my "song & dance"...here's my site for you to view some of the houses I have available.
http://www.MyNewTXHome.com
210-646-12six9
I look forward to hearing from you.
Which ever route you choose, I wish you the best.
Have a Blessed Day!!
0 votes
Darrell D. D…, Agent, Schertz, TX
Tue Jun 26, 2012
Hi Rochelle!

I'm not going to give you false hope and the truth is that you are not in the best position to obtain a qualification. That being said, I highly recommend that to get the real deal, talk with a lender that can look at the whole picture. This is completely free and will take the guessing out of the picture.

I highly recommend Lisa Warren of SWBC Mortgage to assist you. She is a straight shooter and is very creative in thinking outside the box. It won't cost you a penny, but it will give you the information you need to plan for the future. Here is her info:

Lisa Warren
Senior Mortgage Banker - SWBC Mortgage
NMLS# 227358
8400 Blanco Rd, Ste 100
San Antonio, TX 78216
210-494-5626
lwarren@swbc.com
http://www.swbcmortgage.com/warren

She is super easy to work with. Let her know Darrell recommended her and whenever you are set to find a home, I'll be glad to assist. Good Luck!

Regards,

Darrell D. Drouillard
Home Team of America
16719 Huebner Rd., Bldg 4
San Antonio, Texas 78248
210-373-6160
210-881-6760 (Fax)
http://www.dddrealtor.com

'Serving all Your Real Estate Needs'
0 votes
Gabino_Barre…, , Lawndale, CA
Tue Jun 26, 2012
Hi im a mortgage lender. Its simple dont let people get youre hopes up. Either you wait for two years but report good income or get a co- borrower. Depending how much you report net will be how much you can get lend. Give me a call to get you a very good plan. Didnt want to be too direct but is the true. A lot of people want to say they got the answer but they dont. we got offices in texas.


Gabino Barrera Jr.
Mortgage Professional

SWBC Mortgage
23705 Crenshaw BLVD. Suit 101
Torrance, CA 90505
424-236-1655-Cell
310-891-1700-Office
310-872-5404-Fax

CA-DOC861438
License by the State of California Department of Corporations under the California Residential Mortgage Act
0 votes
Jason Campbe…, Agent, San Antonio, TX
Tue Jun 26, 2012
They key to that was "newly" self employed.. The best thing would have been to grab a loan before he changed employment status... but nothing we can do about that now...

FHA requires a 24 month history of self employment... They will look at write-offs pretty hard... so if he makes a bunch of money, and writes off everything under the sun like most of us self employed folks do... it will look like he has no income and $8000 in debt, and won't qualify for anything...

Co-signers might be an option if all the debt and income works out... but it will be a bit of an uphill battle.. I don't want to sugar coat it...

So hard is it sometimes, that I have seen folks go back to their previous job, stay a few months, and then try and get a loan... There were just too many foreclosures in the self employed bracket...

Anyhow... hope that helps a bit.

Jason
0 votes
, ,
Mon Jun 25, 2012
If you have a family member who would co-mortgage with you on the house, and if their income is strong enough, you could use the FHA. The down payment is 3.5%. After you have 2 years of self-employment income that averaged shows a strong enough "net" income to qualify, based on the most recent 2 years of tax returns, you could apply to your current lender to have your family members released from liability for the loan. That requalification would be much less expensive than refinancing the loan, and holds your interest rate steady.
Good luck!
Barbara Coker
NMLS#228545
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas For 30 Years!
Web Reference:  http://www.thecokerteam.com
0 votes
Terry Mendic…, Agent, Seguin, TX
Mon Jun 25, 2012
There are a ton of variables that come in to play.

How much is your monthly debt, do you have revolving debt, do you have reserves. etc.

Give me a call and I will hook you up with a lender can help you out.

Terry

830-765-0346
0 votes
Don Groff, Agent, Austin, TX
Mon Jun 25, 2012
Most likely you will have issues with the newly self employed income. Lenders are pretty strict and want a full 2 years of self employment income. It would be best to meet with a lender or broker to find out what options you have now. I work with some lenders that allow one year but I don't think he can do it alone at this time.

Here is what I suggest. Start working on your credit. Find a lender who will work with you for the long term and start working on your credit so when you can do something your credit score will not hold you back.

Best of luck to you.

_______________________________________
Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
listings@dongroff.com | http://www.AustinListed.com
0 votes
Is it still the same if my husband had the same job for the past 7 years and then switched to his current business?
Flag Mon Jun 25, 2012
Johnny Willi…, Agent, San Antonio, TX
Mon Jun 25, 2012
Rochelle,

Give me a call so I can get some more information I've a few lenders who might be able to help depending on some other factors.

Best Regards,

Johnny
210-858-7899
0 votes
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