Can I get a mortage?

5 Replies

I have been lurking a long time here and have tackled about half the podcasts.

My game plan is to get into a small multi-family (2-4 units) with a FHA/203k loan.

My problem is I dont believe I will be qualified for the mortgage. I have about 50k in credit card debt that I used to finance a business and that is on track to pay off in about 18 months. The problem is all the credit cards are personal debt in my name and are affecting my score and debt/income ratio. I do a lot of different sales jobs as a 1099 contractor so I do have inconsistent income but it is in the range of 40k per year.

Me and my wife also got married this year and she has a zero credit score and started a job making about 30k per year two months ago.

Any mortgage professionals out there that could tell me if its worth taking a shot on getting a home loan right now or if I need to wait it out for me to have a better case down the road?

Have you thought about reaching out to a bank to see if you would be approved. That is the only sure fire way to know if they will loan to you or not. 

@Nathan P. the scenario you described does not sound like it would fit into a traditional FHA mortgage nor a conforming, conventional mortgage. Both of those loan types would analyze your tax returns for 2 years and would not count your wife's income until she has been on her job for 2 years (unless she just graduated college). However, there are loans out there that could base your qualification on the deposits into your bank accounts. So rather than using your taxable income, they would use your "deposited" income. Hope this helps in some way.

If you're not able to get a mortgage yourself, you might want to consider finding a business partner who has good credit and W2 income to apply for the loan.  Splitting the profits with someone like that might put you in a better position than putting of the investment entirely for another 18 months until your credit is back on track.  Just another idea if you're not able to do it yourself.  

I would focus on paying the credit card debt first and building a good credit. This should be your starting point . After this is done you will have a fresh start with no additional headaches and serious risk.
Imagine that you just bought a property and suddenly it needs a new roof or new AC unit and you are out of cash and $50k in cc debt ... that would mean a big trouble.
Wait after credit cards are paid off and than enjoy investing with much lower risk.

What about getting an unsecured business loan or LOC to pay off the personal credit cards you funded the business with? That would bring your utilization way down (since the business debt would be off your personal credit report), which should give your score a nice bump.

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