• filter:
  • Page :
  • 1
  • Text Only
  • Search this Topic »
Voting History
rated:
I will write this post as a bulleted list for a quick read

  • Living in a high cost location
  • Wife took a break from her job to have our kid and has started working part time few months ago. Wife is a physician.
  • Wife will be starting a full time job very soon.
  • Went to the banker to inquire about mortgage and learned wife's income will not be considered, since she doesn't have two years of employment history.
  • My income is only 120K and we wont be able to get the mortgage we want (looking for 800K after 20% down).  Banker said we can get about 600K loan with my income alone.
  • Our combined income will be close to 350K immediately after wife starts her job, so mortgage payment isn't a concern
  • We do not want to wait another two years to buy, if at all possible.

​So do you guys have any idea, if contacting other lenders might help?? Or any other strategies.

Member Summary
Staff Summary
Thanks for visiting FatWallet.com. Join for free to remove this ad.

rated:
...Yeah, I think the next housing implosion will definitely happen. See OP for evidence.

rated:
Put all your wife's income in the bank and in one year you will only need the $600K you're qualified for?

rated:
Two years of employment is not a hard requirement, a letter stating the reason for the employment gap will suffice for most lenders. Maternity is a pretty solid/common reason and it helps that she is returning to the same line of work. If the gap is a deal-breaker for your bank, look to another lender.

rated:
Doesn't seem right. When we relocated out of state, I transitioned to being a 1099 contractor for a period of time (during this period they would not loan anything). We went with a conventional loan and the minute I switched to W2 and had a letter from the employer, they gave us the loan. I didn't even get paid until after it closed.

rated:
I think the hard part here is that your wife has not started working so they have no basis for her income. My wife also took 6 months off due to pregnancy so the prior year's W2 was low but she already went back to work so they used the current year's income projection based on her paychecks. As others have suggested, show them the offer letter or have your wife start working and get a certification from her employer.

rated:
doveroftke said:   Two years of employment is not a hard requirement, a letter stating the reason for the employment gap will suffice for most lenders. Maternity is a pretty solid/common reason and it helps that she is returning to the same line of work. If the gap is a deal-breaker for your bank, look to another lender.
  Thanks, will look into this. The banker gave me an impression that it is a definite no and also most of what I read online seemed to confirm what he said.  Anyway, appreciate this feedback.

rated:
Thanks "tennis8363" and "anthonyu" for commenting. The thing is my wife took a rather long break (1.5 years) and before that she did only 6 months of full time work right after her residency. May be that short employment history coupled with a longer break was turning my banker off. But as you said, going to another lender with a letter saying the reasons for the employment gap might help.

rated:
Does your wife have an employment contract? Many banks have physician loan programs where they will waive PMI, down payments, and loan based on a contract (in lieu of employment). The banks that offer it vary by state, so if you'll tell me your state I might be able to make some suggestions. My wife is also a physician, so we went through this recently to get a mortgage in her name only. We paid a .25% or so higher rate, but qualifying was super easy because they keep the loans in-house.

I was frankly amazed at how much they bent over to give her the money... they have these programs for many 'professions' (lawyers, doctors, engineers) where they know you will have no problem maintaining a high salaried employment.

rated:
Are you in california?

rated:
No, WA State.

ryoung81, thanks for your post. I did hear about the physicians loans too, but the banker was saying those would have been the straight forward option if the new job is straight out of residency or fellowship training. But unfortunately wife quit her previous job after 6 months, which was straight out of her residency, to have the baby and care for him for about an year. So, that created the 1.5 yrs of gap

rated:
Bankers such as BofA do not want people who aren't 2 years employed. You will have to go to a broker such as the ones who post in the APR thread and even those might expect some kind of tax forms that show you have been making enough for 2 years (if self employed)

I also remember something about if you show the proof of employment to a new job, then the brokers can use that as leverage to get you a larger loan.

rated:
Or just buy a $600k house instead of a $1MM house. Just a thought.

rated:
ryerras said:   No, WA State.

ryoung81, thanks for your post. I did hear about the physicians loans too, but the banker was saying those would have been the straight forward option if the new job is straight out of residency or fellowship training. But unfortunately wife quit her previous job after 6 months, which was straight out of her residency, to have the baby and care for him for about an year. So, that created the 1.5 yrs of gap

  
Oh... I wouldn't assume that would be a deal breaker.  Have you talked to BBVA?  Those programs are typically not for "only" new grads or fellows.  Most of them go 5 to 10 years after starting to practice.

rated:
Pre 2008 there were exotic mortgages at bad rates for your situation, I have no idea if they are still around. Ask a mortgage broker that handles multiple lines.

You might also try bank programs for physicians. They do have products for newish Drs. that are broke on paper but will have growing income in the future. Again, all of this may have vaporized after 2008.

  • Quick Reply:  Have something quick to contribute? Just reply below and you're done! hide Quick Reply
     
    Click here for full-featured reply.


Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2016