Another (relocation) home buying question

[carcrazyguy]

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My wife has been accepted to a school in Fort Worth Tx. We don't have to be there until late July. But we can not sell our current house until after graduation in May. That is not going to leave much time to house shop in the "new place". I am going to give my two weeks notice at my current job tomorrow so we can get this house ready to sell and make a few trips to Fort Worth to look for house there. I was told that since I would not employed when we move, we could not get a home loan. I was told, "But if you keep your job in Lubbock until you get a new house bought in Fort Worth, you will be okay." Well how would they be able to use my current income in Lubbock to buy a house in Fort Worth anyway? For that matter, how do med-students that are married with kids that the spouse stays home, or even a single (not married) med-student get home loans without a "traditional income"? Don't the loan companies use some of the student loan money for "income" since is was provided to help with "housing expenses"? I think I saw posted on another thread that the student loan refers to "approx $918 per month...housing "? This is driving me crazy

 

[mpp]

They usually will not consider student loans as income. You should keep your job and report that income to the lender.

The amount of student loan money allocated to housing is school-dependent. Talk to the financial aid office at the school and ask to see a breakdown of the annual budget to see how much is allocated to housing. It usually isn't much...less than $1000. But again, mortgage lenders usually will not consider this as income.

Another option on the loan if you have good credit is to get a no-documentation loan. You don't have to provide proof of income although the interest rate might be a tad bit higher (although they are still quite low right now).

 

[carcrazyguy]

How could they use my current income from Lubbock to base a loan off of? They would know that when we move to Fort Worth I would not have the same job making the same money?😕

How do other students/med students get home loans with no job?

 

[edmadison]

Originally posted by carcrazyguy
How do other students/med students get home loans with no job?

With no income, you may need a cosigner -- I did.

Ed

 

[k's mom]

They cannot take into consideration your "future plans" when writing a loan. They can only consider the present day. I know of plenty of people who have moved to new areas or are SAHM's who got any employment they could (walmart cashier, paper delivery, etc...) and only kept the job until the day escrow closed.
As for the medical-students-buying-hoomes question, most purchase before they leave their old jobs (wherever that may be) and/or use equity/savings/parental loans/cosignors.
As a resident (with a $40,000/year salary and $150,000+ in loans) you will paradoxically have much LESS trouble because you will have that coveted DR. in front your name and banks will throw money at you to get your business.