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Mortgages on a stipend


Since jgiraldo's post brought up this subject in a way--- how likely do you think it is that I can get approved for a mortgage with only two stipends as income.  My partner and I will have a  combined income of a measly 27k, but guaranteed for 5 years must mean something.

Not like any of you can really answer this for sure-- I'll have to apply for one ofcourse, but I've been worried about it.  We're thinking of buying a house (yay!).

Comments

( 6 comments — Leave a comment )
eaw0929
May. 5th, 2009 12:22 am (UTC)
I'm in sort of a similar situation, although I own a house right now which (if it sells), could serve as downpayment funding.

Good luck! Owning a house is one of the coolest experiences I've had in life so far.
gryffinvdg
May. 5th, 2009 03:18 am (UTC)
I think it probably depends on a number of factors. When we bought our home several years ago, it was much easier to obtain a mortgage than it is now. Also, we took advantage of FHA loans and were required to put very little down. I'm not sure if it would be possible to get the same loan today with the same money down. So, I guess some factors to consider are the price range that you're looking in, the amount of money that you would be able to put down on a property, your credit rating, and how much money you have to spend a month.

Although I was required to show my letter of offer to the mortgage broker, we opted not to base the mortgage off of my income at all. Instead, we based everything on my husband's job in the private sector. I'm sure it isn't impossible to get a mortgage with two stipends, but it's probably going to make things a little more complicated and/or difficult. Most mortgage brokers, in my experience, don't understand what kind of employment this is. And, frankly, if they did, they might be tempted to see it as simply temporary work; it could count against you.

Also, (and I'm sure that you've thought about this, but it may be useful to hear it anyway) don't underestimate the amount of money that you're going to need beyond your mortgage payment to make things work in your own home. There are just so many expenses that you don't anticipate. There is ALWAYS something you need to fix or change. Always. Plus, being responsible for everything means that you can be stuck with a bill for thousands and thousands of dollars at any given time.

I think owning a home is a terrific experience -- honest! However, it is something to think carefully about. You are more protected from unanticipated large expenses as a renter than a homeowner. Sometimes it's nice to place a phone call, make it someone else's problem, and continue reading that book for tomorrow's seminar. ;)
gryffinvdg
May. 5th, 2009 03:20 am (UTC)
PS: It never hurts to go down and speak to a mortgage counselor and get pre-approved. At worst, you waste some time. At best, you find out where you are financially according to lenders. It's certainly not binding, and you'll have to do it anyway before going out and seeing some homes, so you really have nothing to lose!
windsweptvoid
May. 7th, 2009 09:50 pm (UTC)
Thanksfor your advice! I still am weighing through those complicated things to think about before going through with it. Just seems like such a smart move, even if there are some added inconveniences.
b_r_a_s_s_y
May. 7th, 2009 09:07 pm (UTC)
I have to say that I tried this, and had little luck w/ just my stipend. I ended up needing a co-signer. But gryffinydg's advice is very sound: talk to a mortgage counselor to find out!
windsweptvoid
May. 7th, 2009 09:49 pm (UTC)
Yeah of course I will at some point. We're weighing options and checking out what's available before actually applying-- so I thought I'd throw it on the board and see what you guys thought.

I could, technically, get a co signer but man would by boyfriend squirm to have my father sign on. My boyfriend's a good deal older than me, which my father has always seemed to have a problem with (though my dad never said anything, it's not his style). So.. man the look on my sig-o's face if my dad had to cosign would be... an interesting one. I think we'd wind up renting before that scenario ever played out.

haha, well, sorry if that counts as sharing too much info :)
( 6 comments — Leave a comment )

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