LadyButler Posted February 25, 2005 Report Share Posted February 25, 2005 I've got an application in with a low income "Bank Consortium" for help in buying a house. We have gotten the first part back - our credit report - with a list of things to pay off and get current. No problem. It also says DH needs to have had current job for 6 mos minimum and have been continuously employed for 2 years. Lastly it says that we need two letters of good credit- it suggests utilities- showing no lates or disconnects.DH will have had his job for 6 months in July. My goal is to be straight by September... so no big deal there... HOWEVER... he did get laid off in November from his main job. He had been delivering pizzas as a 2nd job before he got dropped from the 1st. He kept on delivering pizza until he started his new job. Does that qualify for continuous employment?What should I do about letters of good credit? I honestly don't know if we've got any creditor who'll be able to say we haven't been late at all in the recent past. We just got new cell phones... if we keep current with those, will that work for September?Any insight is appreciated!!!! Link to comment Share on other sites More sharing options...
amortgageman Posted February 25, 2005 Report Share Posted February 25, 2005 For the most part, the lender will want to see a twelve month payment history (unless the program states otherwise). As long as you have been within a thirty window regarding late payments, they will probably accept that.On the job part, the second job was continuous employment whether or not it was full time, then part time, or however that all worked out.Keep things going good until September, and show a willingness to get things on the right path, and hoopefully they will bend just a bit and get you into a home. These programs are there to encourage homeownership, and ther may be a little more leniency by the underwriters if you can show that you are on the right path. Link to comment Share on other sites More sharing options...
LadyButler Posted March 3, 2005 Author Report Share Posted March 3, 2005 Thanks for your reply. We're getting there slowly. I'm kinda hoping that when time comes to submit those letters- if I'm upfront with them- they'll be lenient with me. (Accepting never 30 days late, etc...)I'm so looking forward to getting my family of four (two kids- 10mos and 3 years) out of this apartment and into a backyard!!!! Link to comment Share on other sites More sharing options...
amortgageman Posted March 4, 2005 Report Share Posted March 4, 2005 While you are waiting on time to pass, do your own review, and get letters of explanation ready for any types of late payments. That way, when the time comes you will be ready to "present your case" to the underwriters.What is important to them, is knowing why a situation occurred, what you did about it, and what measures you have taken to prevent this from happening again.Any job layoff is going to create "situations." This means that any late payments through the last couple of months may have a reason. Since he now has another job, he has addressed that situation. Lastly, "What are you going to do to make sure this does not happen again? (Hint: Start a savings account for reserves.)This savings account will come in handy for when you do get ready to buy your home, not only that, but it will also help protect you in the event of a temporary shortfall between now and then. Also, contribute a regular amount to this savings account. (Suppose it was $40.00 per week). If this account is paid into consistently (never less than the amount you have chosen), then this could be included as a tradeline to help in the mortgage approval as a compensating factor, as long as there are no withdrawals on a regular basis. Link to comment Share on other sites More sharing options...
LadyButler Posted March 4, 2005 Author Report Share Posted March 4, 2005 Those are some wonderful tips!We got a sizable tax return this year- and the first thing we did was put aside $1,000 to start an Emergency fund. I know they say your emergency fund should be at least 3 months salary... but this is our start.I'll let you know how things evolve... Link to comment Share on other sites More sharing options...
bad credit man Posted March 30, 2005 Report Share Posted March 30, 2005 How is everything going with getting you're home. Link to comment Share on other sites More sharing options...
firstsource Posted April 5, 2005 Report Share Posted April 5, 2005 If it is not too late, have your husband continue with his 2nd job, delivering pizza's. Once you start the loan process, it is best to not make any changes to your job/s, etc. It sounds funny perhaps, but check with your LO before you do anything that changes the situation you started with. Link to comment Share on other sites More sharing options...
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