I am a first time home buyer and my husband past away in august of 06' I recieve a small ssi check each month for my 9 year old son and I am a fulltime student. the ssi income is enough to pay a small mortgage payment until i gradguate in Sept.
2007-01-20 02:15:06 · 5 answers · asked by iluv2fishtoo 1 in Business & Finance ➔ Renting & Real Estate
Income qualification has more to do with how you have handled debt in the past than the amount of your income. As long as your credit is good and you are purchasing a home that is within your budget, the source of your income, in this case SSI, is irrelevant. In fact, it would be against the law to use the source of your income against you in making a lending decision.
Suppose there were two borrowers. One has always paid bills on time, has an income of $1200/month, and is looking to get a mortgage with a monthly payment of $350. The second has a monthly income of $15,000, but has been late on several credit cards and a previous mortgage, and is seeking a mortgage with a monthly payment of $1,000. The first person will have a much easier time getting a mortgage, as she is the better credit risk.
Here are the keys :
1. Know your credit score. If it is above 680, you will sail through qualification for a mortgage. If it is between 620 and 680, you should still have little trouble getting a mortgage.
2. Be realistic about what you can afford. Lenders use two ratios when making a lending decision. The first is the housing ratio, which is the amount of money devoted to your housing payment divided by your monthly GROSS income. (before taxes) The second is your total debt ratio, which is the total of your housing payment and all your monthly obligations (revolving, installment, and car lease) divided by your monthly income. Note that your housing debt, called PITI, is the principle, interest, taxes, and insurance for your primary residence after the mortgage closes. If your housing ratio is below 33% and your total debt ratio is below 42%, you should have no problem qualifying for a mortgage.
3. Shop around for the best deal. Try a minimum of three lenders and see how has the best deal.
4. If your income is low, ask the lenders about government or GSE (Fannie Mae, Freddie Mac) affordable housing programs. This often means easier terms, lower interest rates, or downpayment assistance. Every lender has what are called CRA loan programs.
Good luck in your home search!
P.S. Just to correct something another poster implied - you do not have to have collected the SSI income for a year. Lenders have stopped looking at that. You just have to show that the income is steady, stable, and likely to continue. Your SSI award letter is usually enough to establish that. Even if your SSI income just started last month, so long as it appear the SSI income should continue for at least three years, you are okay.
2007-01-20 02:44:55 · answer #1 · answered by CJKatl 4 · 1⤊ 0⤋
You can buy a house regardless of age,work and marital status. Loan laws dont allow companies to turn people down on these merits. Using SSI as an income is common. You must meet 2 requirements : 1. your credit must be good enough to get a loan ( no better or worse then usual). 2. The SSI must be an income that you have had in standing for 1 year and be able to show that this isn't a temp situation and that it should not change in the next year. There is also a 30/50 thing to be looked at, what this states as a general rule is you income should be able to with 30% of it pay your mortgage and 50% of your income should be able to pay for your mortgage and other bills, leaving you with 50% of your income in pocket. Some mortgage companies will go to 36/55 %. But this is a common pratice that most banks follow. Sometimes going to a loan company or a broker can cost more money but they can move the money around a lil to push the loan through. I hope this info helps.
2007-01-20 02:36:00 · answer #2 · answered by darin s 4 · 0⤊ 0⤋
Check with the Realtors in you area maybe they can show you a fixer-upper.
Also you may rent to own, which will work towards a down payment and
save the rest for the closing.
Remember, mortgage is just the beginning of a series of bills that come
with owning a home, Taxes-Water-Gas-Electric-Grass cutting-Food- clothes
Entertainment.........
2007-01-20 02:30:05 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Wow, that could desire to be candy to purchase a house with taxpayer's money. Technically shouldn't we very own it then? Get a mortagage..... pay it off utilising unfastened money. Wow, i'm occurring welfare too.
2016-11-25 22:06:13 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I say go for it make your dreams come true don,t listen to people say you cant get it you can and will good luck
2007-01-20 05:58:03 · answer #5 · answered by pattibcacl 6 · 0⤊ 0⤋