can I reasonably get a mortgage?

**sarah87** · 02-19-2009, 10:13 AM

I am 21 years old. I currently live in NYC and pay 900/month in rent (I share an apartment with my fiancee. Together we pay 1,800 a month). We are looking into buying a condo outside of the city. After looking online, I noticed that a mortgage on a condo would cost less than the 1,800/month we currently pay now. Would our record of paying this much in rent on time every month for the past 2 years be worth anything to the bank, or should I not even bother bringing this fact up?

I am currently working off the books as a part time nanny and I bring in about 1,400 a month tax free.

I have about 50,000 in my savings account. My credit score is good (736), and I have zero debt. If I went to a bank for a 150,000-200,000 mortgage on a condo, would they give it to me? What should I do about my job being off the books?

I am a college student right now and aim to get a real job after graduating in a year, but I want to get the condo this year to take advantage of the 8,000 tax return. Could I say I'd be paying with my off the books job and out of my bank account until I graduate, or is that not enough of a source to obtain a mortgage?

**foreclosureoftheday.com** · 02-20-2009, 02:13 PM

Your credit is good enough and your down payment is high enough but for a conforming loan you need to be looking in the 125k or lower range with the 50k down and your current income.

**clemy** · 02-20-2009, 06:57 PM

Originally Posted by sarah87

I am currently working off the books as a part time nanny and I bring in about 1,400 a month tax free.

Oops! Mortgage people usually verify income by asking for tax returns. The only income you will be able to use is the income you pay taxes on. While paying rent on time for 2 years is good, it won't replace verifiable income.

**donrock** · 02-20-2009, 11:59 PM

Clemy is absolutely right. How is fiancees income and credit? Do you claim anything at all? You might think about declaring income for 2008 to try and qualify.
With 50K to work with you might try to find a property that could be owner financed so you wouldn't have to qualify. You might also think about a lease option. My blog link below has a good report on lease options that might be helpful.
Good luck,
donrock

**Thomas Rogers** · 02-22-2009, 09:33 AM

With the amount of money that you have to put down on a home and your income a rent to own would probably work out really well for you. It would require a lot less of a down payment upfront than a conventional mortgage would, you could live in the home for possibly several years before purchasing it, if you decided to do so and during that time you could worry about getting a job on the books. You could also use that time to save up more of a down payment so that you can get your monthly payments cheaper and you could probably get into a little bit bigger of a home then you can afford a mortgage on right now. Should it turn out that you don't like the home in a couple of years because there is too much maintenance or you don't get along with your neighbors you are not obligated to purchase it and therefore don't have the hassle of selling it.