Ok my parents are buying a gas station in Crystal River Florida and they have offered us BOTH jobs. Of course the pay is a little less, but at least we are in the same field. Here's my scenario: Hubby and I worked at gast station for 1 year and 8 months, we will be on unemployment for approximately 1-2 months (while the paperwork for buying goes thru). We have spoken to our landlord (who is reporting on 2/3 CRA's) and thye say we can "buyout" the lease. We would move out of here 9/1/02 and be forced to pay for 9/02 and 10/02, BUT she said it would be reported as "satisfied broken lease" is this going to negatively affect us? Ok next questions, hubby has a mostly paid CA on his TU report only he owes $587, original balance was $1750, the last payment was 10/01 but the DOLA is over 2 years old, does he HAVE to pay this? I have a CA that just appeared 5/02, it says DOLA is 12/01 when it REALLY should be 11/00. It'[s for $450, do I HAVE to pay this? Now, my father seems to think banks are more lenient in Florida when it comes to home loans. Any idea if this is true. Our gross pay will be $750 weekly (roughly), our bills are as follows: car 1- $334 (45 months remain) car 2- $245 (57 months remain) CC 1- $4800used/$5500 CL CC 2- $8800used/$11.5K CL CC 3- $0 used/$2900 CL OD 1- $0 used/$1000 CL Then I have a few odds and ends CC's with no balances that I haven't used in years, they are still open, but I dont use them. I certainly don't want to go inquiry nuts, so I was hoping someone here could give me some insight. BTW my EQU score will be going up once Cap1 fixes the R9 to an R5. Thanks everyone!!!! let me know if you need more info.
Kellie, All banks have underwriting standards regardless of where they are located. I doubt you'll get conventional financing with any collection accounts showing. With 2 kids and no insurance benfits, you 2 owe way too much money. I'd suggest put the idea of a house on the back burner and solidify your personal finances. You or your husband needs to get a job with a benefit package. Then, put money in the bank and start paying off those credit cards.
Kellie, You can qualify if you go FHA. Your average score is above 620 and as long there are not current lates you should be okay. From my estimate, you will probably qualify for a home payment between $750-850 dollars, depending on the debt ratio that the broker/lender will allow. That equates to a home mortgage between $112K-127K. Principal/Interest $820.00 PMI $50.00 Homeowners $25 Taxes $105 (this is based on a $1260 tax year) Total mortgage payment $1000 This puts your mortgage ratio at 33%. This is just a rough estimate. I would focus on getting the new collection deleted or convert it back to its date of delinquency. I based the above estimates on a FHA loan at 7% (I think with the collections they are going to want you to pay a higher rate). Also, they may want you to payoff the collection before going to settlement. Closing/prepaid reserves will probably cost anywhere between $2500-3800 (this is at 0 points). Good luck. Dani
Thank you for the helpful answers. Dani- I;ve called a few brokers today and they've all said I should go no Doc. loan. What on earth is this? I know I wouldn't have to show income, or something like that. Are they saying this cause I will be unemployed for 2 months? How does the interest rate differ? I have one woman calling me back to go thru the pre-qualification. I just need to know, in writing how much I *could* get. I hope your calculations are right, the house I want is 108K.
No-doc is where you don't have to provide paychecks stubs, w-2s. I think they want to see 2 months bank statements or something. I think they are suggesting no-doc because you aren't working, your debt ratio might be high and you are moving into a new state without buying the house first. Have you thought about emailing fla-tan he could probably answer you questions alot better than I can.
In a no doc loan, you'll need to put down a minimum of 20 to 25% {depends on the lender} and, you'll probably pay a 1.5% higher interest rate than conventional.
Keepmine- We all have insurance now, the kids always had it, and when we move and work for my parents we will have insurance there too. If we buy a brand new house we will be willing to put down $10K-$15K, if the house is used, we won't put down as much, in case we need a new water heater or a roof or something. I'm just trying to get a rough idea of what to expect. My parents are going down to Fla. to go thru the home buying process in a few weeks, their scores are 800's, plus they have a large amount to put down. My father is willing to co-sign for me, as a last resort. My parents are willing to put us up for 1 year, in order for us to have NO debt and a large down payment.
