My boyfriend is applying for a FHA home loan today, he has great credit, 700's and has had a job for awhile. The only thing is that he has cut back hours lately because of going to school and work and they asked for his last month of pay stubs. Usually he makes about 1500 a month take home but has only made about 100 this past month because of tests and essays and what not. Will they not accept him based on this? Not to mention that was an intern, he has been hired in at chrysler for the summer making 3000 a month (750 a week).
2007-03-07 07:32:15 · 4 answers · asked by BUFFCHICK25 3 in Business & Finance ➔ Renting & Real Estate
We live in michigan
2007-03-07 07:38:01 · update #1
he was going to rent but it was suggested he buy and build equity, hes already guaranteed a job at chrysler. He also has a very good down payment (20k), hes doing the FHA loan because he wants to flip the house he buys so he can make a good profit on it 2 or 3 yrs down the line when he sells.
2007-03-07 07:46:01 · update #2
I am a mortgage examiner in the State of Michigan. Your situation depends on where you are going for your mortgage. If you go to a mortgage broker, they may be able to shop around to find you the best lender - just please be careful when choosing a broker. There is so much fraud here - people are getting ripped off left and right. You can always call the Office of Finanical and Insurance Services to inquire on a broker (or lender, for that matter). If you decide to go straight to the lender, understand what they plan to do with your loan first - many of them sell loans on the secondary market.
The most important thing to remember is to ALWAYS review every piece of paper you sign. This is where some of the fraudsters are taking thousands of dollars from unsuspecting people.
Anyway, as long as your b-friend has a great credit score, steady income and proof as to why he didn't make that kind of money in the last month - you guys should be okay. Don't bring up what could happen in the future, cause you aren't a fortune teller. Keep it honest and things will work out.
Don't sweat the petty things and don't pet the sweaty things.....
2007-03-07 08:17:42 · answer #1 · answered by Beeny 2 · 0⤊ 0⤋
Might be good to put of a home purchase until he's settled in life a bit more. Like after he's out of school and in a job-career for awhile. And along the way Save up for a good down payment. He will be able to afford more house and a better one with more money. It sounds to me after schooling that he'll comand a good income and should be able to afford a much better home than an FHA home.
However that's my little thought and I'm not there. Good luck
2007-03-07 07:43:27 · answer #2 · answered by Scott 6 · 0⤊ 0⤋
He will be fine if you provide a VOE ( verification of employment) from employer that says that he took some time off for testing. It will also help if you get a letter of intent from Chrysler saying he has a position waiting for him. Alot of lenders will accept income from someone who only has 2 mths on the job if they can prove they have been going to school for that position. Transcripts or a letter from the school work great. Also, you say he has down payment....he will be fine. As said above....dont sweat it!!
2007-03-07 14:00:09 · answer #3 · answered by queenvwr 2 · 0⤊ 0⤋
it may be iffy. With his credit it might be best to get a "no income verification" loan or a "no documentation" loan. The lack of income recently may cause them to approve him for only a very small loan or none at all.
Keep in mind a mortgage is a huge deal and his unsteady incmoe may burden the finances.
2007-03-07 07:44:29 · answer #4 · answered by Anonymous · 0⤊ 0⤋
They like to see steady income for the past 2 years. If only 1 month is off, I doubt they will care that much.
2007-03-07 07:36:49 · answer #5 · answered by sooners83 4 · 1⤊ 0⤋
There are different programs that require and approve different incomes. What state are you in?
2007-03-07 07:36:17 · answer #6 · answered by drunknfaded 3 · 0⤊ 0⤋