Mortgage gurus, i need help

I missed the part were you make a lot and she does not.

So then, why do YOU think it's not the "team effort" just because she doesn't make much? Isn't she bringing the credit worthiness you need?

SVreX wrote: I missed the part were you make a lot and she does not.

Epic... failure... imminent...

I can't help myself. This has bad in capitals written all over it. It sounds like you are making yourself poorer so she can live better. I guess I'm a selfish bastard, as that is not a sacrifice I'd make until I was well established (and even then, it'd be a tough sell). Has she ever lived on her own? Does she know what having a roomate (even somebody she loves) is like?

I'm in a position where I wanted my own brand new condo. It was $1200/month. So I got a roomate, now it is $700/month. But she is subsidizing me, not the other way around. YMMV, and good luck. This IS a pessimistic post undoubtedly, but as a fellow forum goer I hope this has all been thought over and wish you the best of luck if you move ahead with this!

SVreX wrote: I missed the part were you make a lot and she does not. So then, why do YOU think it's not the "team effort" just because she doesn't make much? Isn't she bringing the credit worthiness you need?

It's "team effort" right now for sure.

It won't be if we wait until i can get it myself, and it won't really be once we refinance down the road once i gain the remaining 20 points.

That's not to say that i consider her to be useless in all ways. Far from it.

HiTempguy wrote:

SVreX wrote: I missed the part were you make a lot and she does not.

Epic... failure... imminent... I can't help myself. This has bad in capitals written all over it. It sounds like you are making yourself poorer so she can live better. I guess I'm a selfish bastard, as that is not a sacrifice I'd make until I was well established (and even then, it'd be a tough sell). Has she ever lived on her own? Does she know what having a roomate (even somebody she loves) is like?

Nah.... not poorer. Moving from a one bedroom apartment to this house be within $100 a month of what i'm paying for the 1br apartment. (Barring emergencies, of course.) Quite honestly, it'll be end up being cheaper to live in this house than in the apartment. Won't have to keep farming out my car repairs, and it cuts commuting WAY down.

It is unlikely that someone is financially stable if they have less than great credit.

It is unlikely that it is a good idea to get a mortgage if lenders are generally hesitant about lending you money.

It is unlikely that buying a distressed property is going to be cheap in the long run as compared to just renting an apartment with a similar monthly payment.

It is unlikely that purchasing a distressed property is going to go smoothly or quickly.

It is unlikely that a relationship that isn't committed enough for a marriage is committed enough for any form of joint home ownership.

I know you have explained all of these things, but that sure is a lot to overcome.

In assembler, this would be:

JSR CAB (Jump SubRoutine CrashAndBurn)

Do what you want, of course, and I know your original post said you didn't want it, but there's been some good advice/comments thrown out. Such as: Get married, then buy the house, or you buy the house and she can be a roommate, or vice versa. Then, if you do get married, the house becomes both of yours (sort of, depending on the state, possible divorce, later sale, etc., but we won't get into that). If you don't get married and experience some type of EPIC FAIL, then one person has the house and the other can walk away clean. Decide which one you want to be.

And like Otto sez, a whole lot of unlikely's. 0.1 * 0.1 * 0.1 * 0.1 * 0.1 = 0.1^5 = 0.00001 = 0.001% chance of success. What could go wrong?

When factoring the house payment, don't forget to add taxes and insurance. If you are putting a bunch down, they will add it anyway and make you pay tino escrow. Also, its likely you have to get PMI.

Hopefully you good mortgage broker has infomred you of all this.

PMI is insurance against PMS, right?

PMI is so that if you default, the bank gets paid your mortgage by the insurance company. All those people that defaulted had PMI. They all paid $1000/year to a PMI company, and if they defaulted the PMI company was to pay the banks for the mortgage. They defaulted. The PMI companies went bankrupt. So, all those PMI premiums were basically stolen by yet another insurance company which then went bankrupt and dumped the expense on the rest of us.

Do factor in an entire ownership period (the current owner) of deferred maintenance.

Folks that can't pay their mortgage, generally, don't keep up on stuff like plumbing, electrical, HVAC, roof, etc. repairs.

In other words (partially yours), don't "bar" any emergencies. The emergencies have already happened...you get to deal with them.

This is first hand experience, gained from purchasing foreclosed homes.

Clem

I am a mortgage loan officer in WI.

I suggest working with a broker instead of a bank. Each lender looks at the guidelines a little differnetly and there are deals that will work with one and not the other. A good broker will see the neuances of your loan and will know where it fits.

Have the GF's employer fill out a VOE (Verification of Employment) showing that she has a raise and the proper hours. That document trumps paystubs.

FHA loans have a small monthly PMI factor and have an 'Upfront' PMI that is built into the loan--2.25% of the loan amount. FHA allows for a non-occupying co-borrower as well...think GF's parents perhaps.

Can you 'buy' a lower rate with a point--and then have the seller pay it as a closing concession. You might get a .25 to 3/8 lower rate--and that may be enough to free up the tight ratios.

Also--There is a loan program called USDA Rural Development. The home needs to be in a non-urban area, but if the property qualifies, the program is 100% 30 year fixed with NO PMI--only an upfront funding fee similar to FHA. By taking the monthly MI out of the ratios, you may have a better chance if the ratios are tight.