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kyoun009 · Joined: 05 Dec 2008 Posts: 1 2.02 Dollars($)

Hello, first time posting and your advice is much needed and appreciated. I am a 23y.o. who just graduated from nursing school and will begin my new job in Virginia at the beginning of January. My parents have recommended that I look into buying instead of "wasting" money on renting. I found a home in a great part of town that is reduced to $150,000 (bank repo) but it needs ALOT of work. The real estate agent told me it would need a 203k loan.
So my question is would I even be considered for this type of loan? I have not had much income over the past 2 years because I have been a full time student. I checked my credit report earlier this year and it was 780, but I do not have a pay stub since I have not started the job, but can provide a letter stating my employment for January and I will be getting a base pay of $21.00/hr FT. Also my fiance is a governent civilian and makes roughly $30,000/yr but has no credit.
Do you think they will consider me for a loan with just a letter or should I wait until I have been working for a few months and then apply. I do not want to go to a loan officer and have them look at me like I am crazy with no current job. Any advice will be much appreciated.
Thankyou and Happy Holidays

jameshogg · Posted: Fri Dec 05, 2008 10:41 pm Post subject:

Hi kyoun,

There are certain special packages available for students to get home loans. But I doubt whether the lenders will agree to give you such loans keeping in mind the market situation right now. Still I would suggest you to speak to the lenders and check what they have to say in your case. May be they will ask someone to co-sign for your loan.

This community also has a large number of lenders whom you can speak to and seek a no obligation free mortgage consultation. This will help you to know whether you will be able to get a mortgage and at what type of rate and terms.

Thanks

chrisburns · Posted: Mon Dec 08, 2008 7:06 am Post subject:

Your situation will be far less risky once you have been working there for a few months.

If you can prove you are working in the same line of work you got your degree in and your employer will verify you likelihood of continued employment with them is good... then you stand a very good chance of getting approved.

gmakerley · Posted: Tue Dec 16, 2008 9:29 am Post subject:

i have to disagree somewhat with both of the above answers (and i don't often disagree with chris).

that you've received your degree and will now be entering the workforce is in your favor. and of course it is now december, so prior to your closing, you will already have begun your new career.

it is common practice to allow a borrower whose first job is about to begin (after college graduation, especially), to use that new job's income to qualify for a mortgage loan. since you are investigating an fha product (203K), your fiance's lack of credit is not necessarily a deterrent. if he can provide alternative trade (payment of rent, utilities, insurance and the like), there'd be no reason for him to be disqualified from being a borrower.

your combined income ought to put you in good position to make this purchase and obtain the loan you desire.

i encourage you to begin the process as quickly as you would like. waiting a month or 2 or 3 won't put you in much different position than you're currently in.

evolovik26 · Posted: Wed Dec 17, 2008 9:14 pm Post subject:

Listen to George
Good advice
203k loans are FHA loans which means they are not credit score driven
If your college education relates to your new job you can have a mortgage the day after you get your first paycheck
Your fiance needs to have 2 years of uninterrupted work experience for his/her income to be used and 3-4 alternative credit lines such as phone payment, club membership, monthly insurance payments, rent ect.

That will take care of credit and income.

Down payment needs to be at least 3% (3.5% as of January 1st, 2009) and can be a gift from a family members if you don't have it saved up.

You are getting more then 100% of current value of the home for repairs
The house needs to be appraised at or above the value you need to borrow when all the repairs are completed. (special appraisal for future value required)

You can even use the money for buying appliances, new carpet ect. (make sure you working with someone who has done these b4 and ask them what you can and cannot do)

You will need to have all the contracts and cost breakdowns prepared b4 closing by licensed contractors so that all of the disbursements can be set up.

Its a lengthy process and there are a lot of potential pitfalls so make sure that you are working with a lender that is reliable, can do FHA rehab loans and loan officer that has experience.

But you can start the process right now and you should be able to qualify just make sure you working with someone who can get this done for you.

Or you can find another home and go for regular FHA

gmakerley · Posted: Wed Dec 17, 2008 9:24 pm Post subject:

well said, eugene.

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