CAN I QUALIFY TO PURCHASE A HOME:
Zero move in Financing made simple with verifiable income and a 620 credit score. Let us help you find a Home and we do the Rest.
Home ownership is incredibly regulated today like never before. There are a few simple facts that can break down the process in simple terms. We work with these issues every day. Don’t be afraid to ask.
As a general rule you need a MIDDLE CREDIT SCORE of 620 or better. There are exceptions all the way down to a MIDDLE SCORE of 500, but they are complicated.
Default on government debt, such as a federally insured student loan or a IRS tax lien will DISQUALIFY YOU from buying a home. Student loans and tax liens must be in REPAYMENT for at least 6 months to be eligible to finance a home.
If you have a large number of collections (NON MEDICAL) on your credit reportor if your spouse has a large dollar volume of collections you have an additional hurdle to overcome. New regulations require lender to create a FICTIOUS REPAYMENT SCHEDULEon certain collections. The general rule is that 5% of the balance to be used as a“PRETEND PAYMENT” counted against you in your debt to income ratios. The formula is complicated MEDICAL COLLECTIONS and CHARGED OFF DEBTS are not counted.INCOME:
You must have VERIFIABLE INCOME. If you work for a company, that means 30 days of pay stubs, W-2’s and tax returns. If you work for yourself, YOUR INCOME IS TAKEN DIRECTLY FROM YOUR TAX RETURNS AFTER EXPENSES. NET INCOME IS THE PART THAT IS COUNTED TOWARD QUALIFYING YOU for your home purchase. If you have job expenses that are written off as work related expenses on SCHEDULE Cor A of your tax return, your income will be reduced for qualifying purposes. if you work in certain lines of work. For example, Truck driver: deduct those expenses from your income. Nurse: your pay stubs and W-2 may be all you need.INCOME AND DEBT RATIOS:
New regulations have really tightened down income to debt ratios. As a general rule your house payment, and all your DEBT payments should not exceed 43% of your gross (dependable) income each month. There are exceptions with strong financial additional factors.
In this day of multiple, part time jobs, regulations currently require that you have a 2 year history of 2 or more jobs to be able to count both jobs. OVERTIME has the same requirement.
CREDIT REPAIR: RUN FROM IT FAST AND FAR AWAY!. There may be a legitimate credit repair company, somewhere in America. I have just never seen one!. I am the first person licensed as a mortgage broker in Texas (license number 1).
Any good mortgage company can help you with your credit evaluation. We don’t charge for such services. Most credit repair companies can really hurt your credit. FOR YEARS !