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We are planning a move 800 miles from our current home. When our house sells, my company will transfer me, so I have a job right away in the new state (though earning less than I do now, unfortunately.)
How can we get a mortgage with only one of us working, but with the expectation my wife will be employed in a matter of months? This is the old "trailing spouse" provision which has apparently been done away with.
Will we be forced to rent until we have two incomes? What about a "no income" mortage at a high rate (if they even exist anymore), then refinance when we have dual incomes?
If there is a creative workaround to renting for 6 months, I'd love to hear it.
We are planning a move 800 miles from our current home. When our house sells, my company will transfer me, so I have a job right away in the new state (though earning less than I do now, unfortunately.)
How can we get a mortgage with only one of us working, but with the expectation my wife will be employed in a matter of months? This is the old "trailing spouse" provision which has apparently been done away with.
Will we be forced to rent until we have two incomes? What about a "no income" mortage at a high rate (if they even exist anymore), then refinance when we have dual incomes?
If there is a creative workaround to renting for 6 months, I'd love to hear it.
thanks
You would have to qualify on your new salary alone. No one is going to count 'potential' income that your wife might be making in the near future.
The only 'no income' loans are going to be from a 'hard money' lender who will require a massive down payment and charge you an exorbidant rate. You are not going to find this at a bank. A broker might know someone.
Are you sure you won't qualify with just the one salary? DTI guidelines are still loose enough where if you have good credit you would probably only want to take out a loan amount where one income will cover it anyway so as not to get overextenede. You could aid yourself in qualifying by moving any joint or personal debt over to your wife's name now.
My wife and I are looking at each earning about 45k in the new city, with a $100,000 downpayment. We're trying to get a home around 375k. No other debt , no car loans, credit score of about 708.
When I run my 45k income and 100k down payment thru the CNN/Money mortgage affordablity calculator, with 2k in taxes, I'm coming up with an "agressive" home price of 286k at 5.25%--- about a 100k off our goal.
I looked at the website you posted and it says that the come up with the home price by using a total debt to income ratio of no more than 36% and a housing debt ratio of 28% for conservative and 33% for aggressive.
Some lenders will let you go higher than the agressive amount of 33%, so it will depend on what lender you go to and what type of loan you are trying to do. It looks like your debt to income ratio would be about 48% (depending on taxes and insurance amounts) at the loan amount of $275,000 that you want, which is too high. This is only using your guaranteed salary of $45,000 since your wife doesn't have a job yet.
100K is a chunk of change and it sounds like your LTV would be strong. There are pockets of portfolio money that would consider a trailing spouse. You may not like the rate (6.75% for a 5/1 ARM), but it's available - you just have to look for it.
Maybe a credit union or something.
Yes, trailing spouse can still be considered.... but only to a certain degree.
The home payment would be over 60% of your income(depending on your taxes). That is a little too strong.
Maybe an extended stay hotel is in order.
Or she will have to come out and look around ahead of time.
We have flexible portfolio lending, but a limited lending area and it's expensive. But we can also finance foreign nationals......and let them waive immunity.....when you have that, no one cares about rate.
The OP needs to find something comparable in his market....it may take some calls.
I don't know about a work aroud to renting but I will say that renting where you think you want to buy can sometimes make you change your mind. If you already familiar with the neighborhoods then this doesn't apply.
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Tim, to give you some more info...
