You might not have to. A lender just wants to see a consistent earnings history. If you simply started new positions in the same industries you worked in before and are being compensated in essentially the same manner (ex. salary instead of base + commission), the fact that you've recently started new jobs might not stop you from buying.
Why not talk to some local lenders to get feedback specific to your situation?... more
The only reliable answer will come from your mortgage lender with a complete application. There is just not enough information to say with any certainty one way or another. You may qualify on your income alone or if he was doing the same type of work as an employee before becoming independent, they may not need 2 years. Rather than speculate and create even more questions and possibilities, talk to a great local lender and see what they suggest.... more
570 is tough in today's market. As others have mentioned, Rapid Rescore is a viable option for improving the score if there are quick changes that can be made. If improving your ex's score needs to be a more long term project I suggest checking out www.hocmn.org and meeting with a home ownership/credit counselor in your area. There are plenty of no-cost credit counselors out there, but these folks are free AND specialize in getting people into home ownership through both credit repair and mortgage options.... more
I'm so so sorry about your job loss. This economy has been a smack down for so many people. I'm sure this was never in your head when you bought this place in 2009. Sometimes, someone just needs to say I'm sorry this is happening to you.
As for your question, your credit is going to be hit no matter which choice you make. There is an argument to be made that you won't get hit AS BAD if you do a short sale. I'd say the difference is somewhat negligible.
I guess the good part about a short sale is that it's over with as soon as it sells. I know in a foreclosure some people say you can just "walk away", but many of us still feel responsible, as though we have to try to make it "alright" in some way. Search your heart, talk to a couple of agents, talk to your lender. Then, make your decision.
I have an update for you since this question was first posted. The best solution I can think of for you is to rent out your first home (if the numbers work out so you are not struggling). Then, you can do Contract for Deed aka land contract on your second home. You have the DP needed and probably the income to make it work.
The reason why I would RENT instead of just letting the home go is simple. If you just let it go into foreclosure your credit will be wrecked, and on top you have the 3 year rule for FHA when it comes to repurchase on traditional financing. This way you can simply rent out the home until you are able to sell it, and then refinance your contract for deed into traditional financing. The market is improving rapidly in Maplewood (I work there), and the timeline is shorter than you may think.
You actually won't even need the full 20% unless it gets you better terms...10% will work just fine. I have a special CD program where you can buy ANY PROPERTY off the MLS; not just what you can find off of Craigslist or other CD websites. I would love to speak with you more about it if you are still interested (I know it has been awhile).
This is the only solution I see if you want to buy now. Another option that was not brought before is the fact that you can technically go CONVENTIONAL financing just fine I think in your situation. You just can't do FHA on two homes. This is more of a clarification, because you will still run into DTI issues and probably not get the type of house you want.
If you are still interested just contact me directly through Trulia.
Contact the department of Housing and Urban Development (HUD). What you are stating would be a violation of the Federal Fair Housing statutes and would be investigated by HUD. The state attorney general would not be a bad call either as there are seperate state statutes that this allegation could be investiagated under.
One word of caution however. What you are proposing is a very serious allegation and should only be complained if you are really sure that is what is taking place. Make sure you aren't mistaking a bank's underwriting criteria or guidelines for a racist roadblock to your loan.
licensed MN Broker
Coldwell Banker Burnet
The title company will tell you what entity or names are capable of accepting and finalizing the sale; your name will be checked by the title company and the closers to make sure your legal signature is on the documents needed. Your real estate agent will help you make sure that all legal measures needed to make a valid purchase agreement are in place. Liz, 612-986-4105... more