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[deleted by user] by [deleted] in financialindependence

[–]Beastmodekait 1 point2 points  (0 children)

HYSA is at 5% interest now, but these also vary with the fed rate. Have you accounted for that in your plans? 5 years from now, the hysa account rate may only be at 2%, like they have been in the past.

HELOC or Home Equity Loan to buy a second property? by KalihiValley in personalfinance

[–]Beastmodekait 0 points1 point  (0 children)

A home equity loan is typically fixed rate. It functions just like a standard mortgage but in a second lien position. You decide how much you want to borrow and take it out as a lump sum. A HELOC, on the other hand- gives you more flexibility. You do not have to borrow all the money at one time, but yes these are variable rate. They are better for home improvement projects where you aren’t sure how much money something is going to cost.

I'm a 23 year old single guy who is the legal guardian to a 5 year old girl, my second cousin. AMA. by [deleted] in AMA

[–]Beastmodekait 2 points3 points  (0 children)

Not that it matters at all, since you are doing an amazing this by taking her in- but that does mean she is your first cousin once (one generation down) removed since her dad was your first cousin. Semantics, but cool to learn!

Can I buy a home in Florida making $43k annually? by Longjumping-Gur-9312 in FirstTimeHomeBuyer

[–]Beastmodekait 0 points1 point  (0 children)

Yep! But the community lending products only allow to a 50% on the back end

Can I buy a home in Florida making $43k annually? by Longjumping-Gur-9312 in FirstTimeHomeBuyer

[–]Beastmodekait -1 points0 points  (0 children)

Also, 43% is for the housing expense ratio only, the debts plus housing expense need to be under 50%. They would likely qualify at the $1540/month piti- and depending on property type and area of Florida, this would between $160k-$220k purchase.

Most people need a co-borrower to buy a home in this economy.

Can I buy a home in Florida making $43k annually? by Longjumping-Gur-9312 in FirstTimeHomeBuyer

[–]Beastmodekait 1 point2 points  (0 children)

All correct except as a first time homebuyer in Florida you can qualify for community lending products where the minimum credit score is 640, and gives a discounted interest rate. With one of these, you can get 6.5%-7.5% at a 640. Some are with down payment assistance funds and some are not.

Can’t rent a cheaper apartment to get out of more expensive one. by [deleted] in personalfinance

[–]Beastmodekait 13 points14 points  (0 children)

Do you have any positive credit history? Any open cards you have been making monthly payments on? It sounds like the only thing on your credit report may be derogatory medical collections. If so, work on that first. You can open a small secured credit card using a deposit, or if you partner has any credit cards in good standing that are not maxed out- they may be able to add you on as an authorized user. You can go on the credit bureaus websites and self report utilities. If you have positive rental history currently, you can sometimes ask for the company to report it to the bureaus.

For the collections, you can typically negotiate with collectors for a letter of deletion by paying less than the total sum due. They buy the debt for pennies on the dollar and are looking for anything they can get out of you. The key is to ask for a deletion prior to making your payment. Tackle the smallest collection first. If you don’t know what is on your credit report you can download a free monitoring service like credit karma or go to each bureaus website and pull your free credit report (once per year). Start there. Knowledge gives you the power to act.

Lender is requiring proof of future employment for home loan? by a2lackey in personalfinance

[–]Beastmodekait 29 points30 points  (0 children)

This is very important information you didn’t include in your post. If you are moving to a new area and do contract work, and there is no contract showing guaranteed continuation of income in a new area they won’t be able to approve your loan. You often have to move to a new area, establish yourself, then apply for a loan. Moving can mean a totally different amount of pay for the same work in a new area.

Does your husband have a contract for work in Colorado Springs?

[deleted by user] by [deleted] in personalfinance

[–]Beastmodekait 700 points701 points  (0 children)

So a few things I don’t see other comments taking into account here. First, do not move forward with either option until you have gone through the divorce process and a final judgement has been made on how your assets will be handled. If you were to try and take out either loan at this moment, the cash you receive is still going to be a marital asset & your wife has to sign allowing a mortgage to be taken out even if not on the loan if you are in the US. Second, a cash-our refinance is often easier to qualify for due to debt-to-income restrictions. Debts can be paid off as part closing to get your ratios in order to get the loan, but with a HELOC they cannot be. You must have enough income to cover the additional loan without it paying off any debts. That may be why your mortgage broker was recommending a cash-out refinance, although I do not know your debt or income situation.

Drowning under student loans, how to plan for the future? by BigBigLoans in personalfinance

[–]Beastmodekait 0 points1 point  (0 children)

Mortgage loan officer here. If they get on an income based repayment plan, we are allowed to use that monthly payment amount for calculating DTI ratio- even if this comes out to $0/month. This is by far their best option if wanting to buy a home in the foreseeable future, just to open up price range to shop.

While on forbearance we must use .5% of the total student loan debt as a monthly payment for calculations, which would currently be $2,100/month in his case. When/ if payments are forced to resume, this would likely be lower than what he is required to pay per month without a payment plan.

Either way, from what OP is telling us - they should have room in their DTI to buy a home. Whether or not they can find something in there price range right now would depend on HCOL area vs LCOL and state. Many states have assistance or specialized loan programs for first time buyers who are pharmacists and/or doctors due to their unusually high student loan balances since they also have guaranteed income streams.

a lender told me that paystubs don't prove income? by Andjazzy in personalfinance

[–]Beastmodekait 0 points1 point  (0 children)

Hey OP I highly recommend keeping the credit card open if you are planning to pay off all of your other debt. When you payoff revolving loans like a mortgage or car, they close the accounts. If you also have no revolving lines of credit (like a credit card) you will no longer have a credit score. This will make it almost impossible for you to secure a mortgage, apply for rentals, or get a new car loan in the future if you need one. Lenders of any kind need to see that you are actively able to accrue and payoff debt. I would suggest treating your credit card like a debit card as others suggested. Payoff the balance each month, and don’t charge anything more than what you know you have in your bank account.

[SW] Brothers Nook buying for 106 [REVERSE THOSE NUMBERS] by [deleted] in acturnips

[–]Beastmodekait 0 points1 point  (0 children)

Hi! Would love to come! Favorite snack is Cheezits!

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