"Mortgages can be fun!"
(said no one ever)
Well if you’re reading this, you’re officially on the mortgage road less travelled. Not everything with getting a mortgage is based on black and white guidelines. Fortunately we see people, homes, and loans in beautiful color and specialize in uncharted territory…so throw out the cookie cutter formulas and let’s get weird. Here are some off-the-beaten-path mortgage questions that we’ve answered for others:
Recasting occurs when you’ve made large principal payments towards your balance, and now you want the amortization schedule to be recast, so your payments are lower.
No, you’re going to have that loan as long as you continue making the payments on time.
You would either need to have an offer letter from the new employer in the new city in order to qualify for the new house or IF you had enough income to qualify, get the home in the new city as a second home.
Fannie Mae and Freddie Mac do not have a minimum number of open trade lines requirement. You can have loans that have been paid off and only have one active trade line and still get qualified for a mortgage. Your loan officer would need to run your loan through either Fannie Mae or Freddie Mac system and get an approval, but having only two open trade lines will not disqualify you.
You may be able to refinance out of your FHA loan into a conventional loan. And assuming you have at least 20% equity, you would be able to get rid of the private mortgage insurance. Depending on your credit score and other factors, you may be able to lower your rate, but when you pull cash out on a conventional loan, there is an interest rate adjustment that increases the rates. So you’ll want to talk to your loan officer about your situation.
It’s not a problem that you don’t receive paychecks during the summer since the underwriter will request a verification of employment and confirm your annual pay.
The fact that you get paychecks from the babysitting gig is fine. The underwriter might ask for copies of the checks depending on the amounts.
Normally you need to paper trail any large deposit outside of payroll. Some things the underwriter may look for on a bank statement would be non-sufficient fund charges, large deposits that appear to be cash, or liabilities. For instance, ACH payments on liabilities that might not be on your credit report.
Unfortunately, conventional financing requires four years from the discharge date. You could try FHA, which only requires two years seasoning from the discharge date. Outside of that, non-QM would be your only option.
Good for you for taking some time off. Most banks will want to see six months back on the job to consider the income stable and used for qualifying purposes. If there’s no gap in employment, for instance, you resigned from one job and take another offer, there is usually no requirement on a length of time with that employer. So you can go get a mortgage that same week as long as you have a signed offer letter from the new employer.
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