Brooke asked in Business & FinanceCredit · 2 years ago

Can I Get A Mortgage Loan?

I've been establishing my credit for 2 months, so it's at 650 (I checked). I've also had a water bill for about a year, if that helps. My boyfriend has none (long story).

He makes $8/hr, I make $7.50, both Tu-Sat jobs, 5 hrs/day due to school.

He has vehicle insurance & phone bill ($200/month total). I have a credit-building loan ($50/month).

Also, we have some savings.

What's the possibility we will be approved?

(Please no relationship advice) Thanks in advance!

11 Answers

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  • Anonymous
    2 years ago
    Favorite Answer

    Two months of credit history is not enough to acquire a conventional mortgage, and a credit score of only 650 certainly isn't, but you may qualify for FHA. By the way, you say your boyfriend has no credit history, but no credit history isn't as much of a big deal in getting a mortgage as a kind of bad credit score of 650.

    The biggest problem you're going to run into in getting a mortgage loan is meeting the income requirements. Since all banks sell their mortgage loans on the secondary market, all mortgage loan requirements are pretty much the same. For income, what you pay per month on debt cannot exceed 25% of your total monthly income and whatever mortgage loan you qualify for cannot be for more than 35% of your total monthly income minus what you pay out per month in debt, like towards credit cards.

    You and he only work part-time, with you grossing $866 and he grossing $812, which is $1,678 per month gross. That means if you have absolutely no monthly expenditures on debt, that you would qualify for an absolute maximum of a $587 monthly mortgage payment. For every dollar of monthly debt you pay out, like on credit cards or that "credit-building loan" will reduce that $587 by $1, so like the $50 per month you mentioned in credit-building loan" will bring that down to $537, but if you have more than $419.50 going out per month in repayment of debts, then that doesn't reduce the $587 by $419.50 but instead means you don't qualify at all.

    That said, if that $50 per month is your only debt and you and your boyfriend haven't bought a house before, you may qualify with your credit scores for an FHA loan, and the maximum you would be able to afford with your present income and counting only that $50 per month is about $100,000 on a 30-year-fixed. HOWEVER, FHA loans require a minimum 3% down payment. That's actually less than conventional loans, which require a minimum of 5% down payment. Anyway, a minimum 3% down payment on a $100,000 house is $3,000. That means you must have $3,000 cash to put down on a $100,000 house in order to get approved for the mortgage. You are not allowed to borrow the $3,000 and you must be able to prove to the bank that the $3,000 is yours, that you've had it in a bank account or recently come into it by way of a bonus or wages or a gift or something like that, meaning secretly getting a loan for $3,000 isn't going to fly because you have to show where that $3,000 came from.

    • Beverly S
      Lv 7
      2 years agoReport

      It's actually 3.5% down not 3%... changed a few years ago. :)

  • 2 years ago

    You won't be. You will need 2 year job histories, and 2 years credit. On credit you will need 3 different accounts paid on time with no negative credit (collections etc). For an FHA loan you will need 3.5% down payment. Water bills don't report to credit bureaus so that means nothing. Same for insurance & phone. I would also make sure you are paying rent with a check since we do verify that residence history is good (no evictions etc.) 650 is a decent score but you have what we call "baby credit" meaning it's too new to mean much at this point.

    Source(s): Mortgage lender 32 years.
  • tro
    Lv 7
    2 years ago

    you don't have a down payment for one thing, your income is certainly nothing to base any loan on and unless you have two year's tax returns of good income, make a plan to start building up your savings for a down payment----and the most important factor is not rely on the b/f for anything, this 'happy' relationship could sour in the inkling of an eye

  • 2 years ago

    Zero possibility.

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  • MadMan
    Lv 7
    2 years ago

    No you cannot. You will need at least another two years before you are in a position to get a mortgage.

  • Anonymous
    2 years ago

    Zippo.....consider it in another 5 years.

  • 2 years ago

    There is zero chance you will get approved.

    "A credit building loan"? HA HA HA HA.... what a ridiculous concept!! Let's pay some interest so it might help with getting a lower interest loan in the future.

    = PLEASE PLEASE pay this stupid loan back right now, so you aren't wasting your money!!!

    You make $9750 a year, if you are never sent home early and you work all 52 weeks.

    There is no where that that is enough to purchase a house.

    Bank of America and the Khan Academy have created some videos to help young adults learn money management.

    Please watch them: https://bettermoneyhabits.bankofamerica.com/en

    Also, NEVER NEVER consider purchasing a house with someone you aren't married to or give someone a large sum of money.

  • 2 years ago

    Water bill doesn't help. 2 months of credit history isn't enough. You only make $10K a year, even if you could get a loan, it wouldn't be for more than about $30K

  • Eva
    Lv 7
    2 years ago

    There is no chance you will get approved. Your boyfriend wouldn't be approved at all since he has no credit history or score. On your own, your income is insufficient and your credit history much too short. You can't get a mortgage loan with a part-time job and you need a stable job history of at least 2 years. Wait until you're out of school and have an established job before you even think about buying a house.

  • 2 years ago

    No, you will not get approved.

  • Anonymous
    2 years ago

    Pretty much zero.

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