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Considering applying for a mortgage and have a couple ?s?

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We currently rent and would like to buy a home now that prices are dropping in our area and nothing is selling. My husband's income is about $50k and mine is $18k in child support, $6k from one pt job and I also have my own home show business that right now only provides an additional couple hundred a month, but too soon to be proven so I guess it can't be counted. BUT will my child support be included as income, I'd like it to be and it would just be a shame if it wasn't. We have average credit and could use any advice anyone would like to share before we start this process. Thanks.

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  1. For us lenders to include child support we need, a copy of your child support order & proof that it has been paid on time to you for at least 1 year.  We also must prove that it will continue for at least 3 years (childs birth certificate showing child under 15 years old).  If it's a brand new order or childs father has not been paying on time for a year we can't use it.

    Good luck!


  2. My husband and I are kind of in the same boat (renting).  He makes about 53K. I make around 26K.  We pay close to 800 in rent a month. Decent credit (mine is worse). I just happened to call a mortgage company because I was just curious about the mortgage process.  He asked me a few questions (job, existing debt, income, etc.) and ran my social security number and my husbands and told me if I could tie up a couple loose ends (bringing down my credit card balances), he could get me pre-qualified for 100K.  I was at first bummed because I thought 100K isnt' enough!  However, when I started looking online at properties, I was amazed to see beautiful 3bd homes going for 50K and lower.  One I saw even was 15K and that was for 1700square feet!  So, I called him because I thought something was terribly wrong with the homes.  He told me that I was probably looking at homes that were seized by the bank because the owner couldn't keep up with his mortgage (because of adjustable rate mortgages).  He said there are hundreds of homes in that price range.

    So my 100K is actually a WHOLE lot more than i'll need.  I can buy a home at, let's say, 40K and the rest can go into an escrow account and that will pay my yearly property taxes and mortgage insurance and even the fees associated with closing (down payments etc.).  He said I wouldn't have to come out of my pocket at all!

    This is an FHA loan. That's a government loan for people who don't have the best credit or don't have a lot of money for a down payment.

    I suggest you searching the web for mortgage lenders who do FHA loans.  

    I'm confident you could probably find a HOME with a mortgage at or lower what you are paying in rent.

    Then in a few years, when the market stabilizes and prices begin to go up, you can resell your home and take the profits (which will probably be substantial) and buy your dream home.

  3. if there is a court order for the support, then yes it should be counted.

    Based on your income, I would not spend more then $1,400 a month (OR LESS) for a monthly payment.  This works out to a $175,000 mortgage plus your down payment and closing costs.

  4. A good comfortable rule of thumb is to look at a mortgage value of approximately 2x your annual income.  In your case, you have $50k + $18k = $68k (x2) or a mortgage value of $136k.  

    You should plan on no more than 1/4 of your monthly net income being used to pay your monthly mortgage payments.  Any more than that, and you may find yourself stressed financially.

  5. Go ahead and try!  The worst they can say is no.  I was a first time homebuyer at the age of 22 years old.  I was so tired of flushing $600 a month on rent when I can own for less.  

      

    So i applied around town.. go to a variety of places, try where you bank first.. just ask for the mortgage department.    I'll just tell you I was declined at the 3 places I tried in town.. either my credit, my income, or the house I was buying was too inexpensive ($42k).         So I tried Nationwide Advantage Mortgage.  They were super nice, we did everything over the phone, AND they didn't act like I was sub-human because I can't afford a $42,000 house.  Now I've lived here for a year and a half, only paying $471 a month!  

    Like i said, they worst they can say is no, and everyone might not say the same thing!  

    Get your application stuff together, go visit 2 places in town.  I'm thinking a bank and a "mortgage source" type place that taps every available outlet.  THEN go online.. heck, try Nationwide Advantage... (www.nationwideadvantagemortgage.com)  

    And I'm 99% sure child support counts as income.

    Good luck! :)

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