Bachelor with kids can be approved for home loan mortgage?
letty po asked:
I’m a bachelor with 2 kids, i have been divorced for about 4 years now. my income is below 30000 annually. Will they approve a home loan mortgage for a bachelor like me?
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I’m a bachelor with 2 kids, i have been divorced for about 4 years now. my income is below 30000 annually. Will they approve a home loan mortgage for a bachelor like me?
June 20th, 2010 at 1:36 pm
It will be harder because you have three mouths to feed. If you receive child support, you can include that on your application if you so choose.
Go to a good company and ask to be pre-qualified so you will know what you can do.
June 22nd, 2010 at 4:49 am
It depends upon a lot of things. Your debt ratio, your overall expenses and the price of the house. The rule of thumb is you can afford a house worth about 2.5 times your annual income. That’s not a lot, but in some areas it can get you a nice, clean place to live.
Check online with something like Lending Tree and go to Realtor.com to see what might be available in your price range.
June 24th, 2010 at 4:35 pm
Don’t buy more home than you can easily afford–don’t overextend yourself.
Go to local bank and get pre-approved so you know what you can get a loan for. Depends on your other debt, your credit rating, your income, your down payment.
Need 3-5% down payment and 10% is better. Need good credit.
June 25th, 2010 at 2:14 am
Approval for a mortgage has little to do with marriage/single and a lot to do with income, debt-to-income ratio, cost of home, timely payment of other bills, and credit score.
The easiest start is getting your credit report and score from one of the big three (Experian, TransUnion, Equifax) credit reporting agencies to look over your credit history. You can look online for the FICO score meaning, but most agencies consider a FICO score above 725 as good.
Also, on the credit report…do you have bills that were past due by 30 days? 60 days? 90 days? Each one of those can affect your score. Additionally, the front page will tell you your overall debt-to-income ratio in percentile form.
Once you review your credit report, take it to YOUR financial institution and have an advisor look over it (usually a free service) and they can provide recommendations how to improve your score as well as whether you are a good candidate or not for a mortgage.
Hope this helps and good luck
June 26th, 2010 at 3:59 am
See if you qualify for this program:
What it does is pays for the down payment. Right now since it is a buyers market, it is likely that the owners will pay for closing cost, if that is a new home incentive.
1) Get your fico scores, freecreditreport.com
2) Know your credit profile, what you owe, things you can pay off in the next 6 months may not be counted at all.
3) Face the music, talk to a lender, you need to know what you qualify for now, and at what % rate in order to make the best decision for what you can afford.
4) How much can you afford? An example is that old rule of 3x your income, make a $30,000 then you can likely afford a $90,000 house, keeping the housing monthly expenses between 28 and 41% of your monthly gross income. (Still, your lender is the best source)
5) Contact HUD for a list of programs you may qualify for especially if you are a first time home buyer.
Difficulties:
If your debt to credit ratio is too high. Pay off debts, take 6 months to 1 year to pay down your debt before exposing yourself to house cost, house maintenance cost. The rule of thumb is you do not want more than 25% worth of debit based on the credit you have been approved for. An example is 1000 cc / nor more than 250 utilized credit or debt.
If your past debt is unresolved, everything you pay for when you get a house is based on your credit. Cable/SAT, phone, water, trash, sewer, propane, these companies can charge you fees depending on your credit score.
Do not buy anything (big – a car) and Do not close any credit card accounts. Credit helps you, if you close an account, now the other credit cards have to take up the slack.
An example,
$4000 CC A
$3000 CC B
The debt on $3000 credit card B is $2000. The debt on the $4000 or ccA is $3000. If you close credit card credit card B, you are now in the red for extra $1000 over what CC A can cover.
Good luck to you and your family!
June 29th, 2010 at 6:17 am
You can always apply and ask. You can count your child support as income as long as you will receive it for a few more years.
The banks will look at your debt to income ratio, as well as your credit rating.
Do not worry about asking a bank, the worst thing they can do is say no.
July 2nd, 2010 at 12:11 am
Being single is not a reason to not approve you. Same for having kids.
What will STOP you is the income.
If you are earning around 28,000 a year. The max you should be spending for housing is around 460 a month. A 460 a month mortgage payment = about a 50,000 mortgage, plus your down payment = the price of a house you can afford.