Not enough income to get a mortgage

8 Replies

Hi guys,

Need some advice please help!!!

Current situation:

Husband makes $15 an hour and works full time. I’m an independent contractor hair stylist. I took a 3 year break in my career for personal reasons and got back to it last year but with the pandemic, I only have about 6 months of work history for last year.

Savings $150k

Income from one rental $700 per month after all expenses.

Zero debt and both have good credit.

We are currently renting since we just relocated to Florida. No kids at home and husband is Army veteran. I make about $4000 per month as an independent contractor.

Issue:

No bank it’s gonna give us a mortgage big enough to buy anything decent in my area since husband’s income is not enough and I can’t use mines cause I don’t have the two year work history yet. I know one option is to just wait for me to have two years of work history..... but I refuse to sign another lease. Paying somebody’s else’s mortgage hurts my heart.

What would you do? Should we use the savings to buy something? Pleas help!!

@Maria Luna So I’m assuming you are looking to stop renting and purchase a primary residence? I also live in Florida and just got a primary residence I wasn’t at my job for 2 years but like you mentioned you took a 3 year break from work so that would be a problem. What I would suggest if you are set on purchasing a home ASAP, go onto Zillow, Redfin, Facebook. Search keywords owner financing, seller will carry etc. and target people who are willing to seller finance. You have a good amount saved and I wouldn’t see an issue in that. The other options could be lease options, cash, or the bank will allow just your husband to get a mortgage for a certain amount then you could cover the rest with your savings.

Best of luck!

Hey Maria,

Have you looked into a VA loan for your husband? If his certificate of eligibility comes back good you may be able to just use his W2 income, sizeable down payment, and low-interest rate to get y'all into a house you would like.

Here is the link for the COE:

https://www.ebenefits.va.gov/ebenefits/about/feature?feature=cert-of-eligibility-home-loan

There are also bank statement loans if you have 12 months of income for your business...

@Ryan Haro

We have not, but that’s the next step we are planing on taking.

I'm a bit confused with the VA loans. So however much his VA certificate is for, is that how much we can get a mortgage from? Or does it still depend on the lender/bank?

@Maria Luna No, it provides us, lenders, with the proof he is eligible for the VA loan. Feel free to reach out to me with any questions. I have been doing these in Florida for a while. My contact is in my profile, I'm not allowed to put it in this forum.

@Ryan Haro ah ok. Yes he has the VA eligibility certificate already. It shows a "$36k available entitlement"

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