Fresh out of college, Brand New job, and Possibly house?
I am a recent grad from a school in Ohio and about a month ago I became FINALLY a big girl and got my first full time job. My fiance and I live together and we decided that we’re done living in an apartment and we want to buy a house. Currently I have two jobs, making 2 grand a month before taxes, credit scores ranging from 690-720 and have not a lot of debt (college around 13,000 and my car is being taken care of by my parents with a car loan in my name to keep my score high) I have been working at a retail store for 2 years and all together I am paying 100 dollars in credit card debt a month.
We’re not looking for an expensive home, less than 90,000 is actually what we’re even looking for in a major city (I am living in Toledo Ohio… you can get a decent home for 90,000 here for some odd reason)
Is it possible for me to even get a loan or should I wait? We’re just tired of living in an apartment, he has bad credit and child support in his lap and I’m not in much debt to begin with (obviously by the description). We wanted to get a house before we got married so that my credit wouldn’t fall apart and we wouldn’t be able to get a loan. He’s trying to pay everything off but we’re getting married in a year and his debt has been on him for a good 3 years now (not to mention with student loans over 40,000)
I guess what I’m trying to ask is if I married him, would I not be able to get a house? and if I can’t get a house when I marry him, can i get a house NOW while my credit is amazing (for a new college grad everyone keeps telling me I have amazing credit…)
we want to move in September because our lease is up then and we don’t wish to move into another apartment complex.
No harshness please, this is for help purposes. I love the guy debt or not, so please be gentle. 
Technically before tax I make 2320 a month.. if that changes anything. i also make about 50 a week from my retail job because I work mostly weekends there.
Actually with this type of economy, me starting off with 2320 a month is actually good considering there’s a lot less unfortunate people without jobs. I call myself very lucky to have this job and although I do hope that the pay raises soon, I do love the experience I am getting right now. Especially with being just an entry level college grad.
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April 11th, 2011 at 9:02 pm
There are many decent homes in Toledo for $90K or less, including a few on my street.
Getting married has no impact on your credit and by itself will not change your ability to buy a house. More details are necessary to be certain, but you may qualify for a home in your price range now. FHA does not have a minimum job time requirement for your full time job as long as it is likely to continue, but will require 2 years of employment to count your part time income so it appears you may be OK there for both jobs.
Your credit scores are more than enough to qualify and based on your income you would need to keep your total debt payments to about $1,150 per month. Even though your parents are paying your car payment it may count in your debt ratio unless there are ten or fewer payments remaining, or if one of your parents signed on the loan and can document that they have made the last 12 payments it won’t count as your obligation. I’m guessing your student loan payment to be about $140 and if $100 is your required payment for your credit card debt that will count too. I estimate the total payment for a $90K purchase to be around $750 so qualifying will depend on the amount of your car payment and whether or not it counts as your debt. FHA loans require 3.5% down, but we also have a grant program in Ohio that will give you 2.5% of the purchase price toward your down payment and closing costs.
Good luck, and feel free to email with questions.
http://www.fhaoutreach.gov/FHAFAQ/
April 11th, 2011 at 9:02 pm
A little over 2 grand a month before taxes and you went to college? 27k gross? A bachelors!?? That can’t be right. That job is too low paying and his credit is too bad. 690 to 720 is decent credit, excellent credit is above 750. Between the 2 of you, no ones in an ideal situation. I doubt youd be approved for a mortgage anytime soon. Id wait a while to save up a ton and in the meantime your pay I hope would increase with more experience.
April 11th, 2011 at 9:02 pm
Probably not.
Mortgage companies normally want to see 2 years of continuous employment.
These days, banks/mortgage companies will dig and dig until they find a reason to say "No".
Talk to a mortgage broker. You never know.
April 11th, 2011 at 9:02 pm
They will not count income from both jobs because you have no history of working 2 jobs. To not count the car loan against you your parents will have to provide 12 months of canceled checks to show they are making the payment. If your parents bring income & low debts to the table maybe they will co-sign for you. I see no other way for you right now.
April 11th, 2011 at 9:02 pm
If you have the 20k down payment then go talk to a bank as your mortgage with taxes on a 90k house should be around $600-700. That’s around 30% of your take-home pay. That’s reasonable.
If you don’t have the down payment then I would not apply.
April 11th, 2011 at 9:02 pm
27k is a decent salary just starting out for many areas — I think some people forget that the median salary is only 35k in some cities. 30k is an excellent salary in my city because many people don’t even make 20k (but the cost-of-living isn’t too bad either).
How much money do you currently have saved? You’ll need money for the down payment, closing costs, and you should have an emergency fund with 6-8 months’ worth of expenses. You should also pay off the credit card debt in full (not sure how much you have since you just say you pay $100/month). The car loan adds to your debt, so you’ll need proof that your parents have always paid for this loan and will continue to pay for it. Are you currently working in your field of study? If so, then lenders are usually less stringent about the two year stable employment history rule — six to twelve months might suffice. You might be eligible to borrow around 70k-80k… but it doesn’t mean that the two of you can afford to do so.
I would highly suggest that you find a cheap, 1-bdrm apartment to rent and get some of the debt paid off before you take on a home. I realize that you’re in love and his debt doesn’t matter to you… but it might in a few years if you have kids and your tax refunds are being seized, his paychecks get garnished, bank accounts get garnished, etc. Your credit is not amazing — excellent credit is above 750 — yours is decent, but not great. Is your fiance current on his student loans or has he defaulted? What is he doing to bring up his credit score? Finance is a huge stressor for married couples and is one of the leading causes of divorce — make sure that you are actively discussing what is going on and what the plan is to repair his credit and continue to improve yours. You can pay down the debt, build your emergency fund, and then begin saving for your house (down payment and closing costs). You haven’t mentioned was his current income is… is he able to pay his child support and all his bills and debts (at least the monthly payment) with money leftover to contribute his share of the household expenses?
Personally, I’d hold off a bit and get things straightened out financially between the two of you. Getting married isn’t going to ruin your credit score and you can still purchase a house in your name only down the road (assuming your credit remains good). I would highly suggest that you keep your finances separate at the bank… especially if he has defaulted on any debts (it will protect your money). Good luck to you.