Thread: Can I buy a house with what I Have?

The dream of having one

there is still allot of things to consider i think you could rent first...just for starters at least your knowing it slowly but surely...in times like this we need to be sure of our decisions....well thats my advice...

Originally Posted by MINA814S

Hello everyone.
I am currently looking for a house to buy.
I found one in NJ for $299,000, and I have $20,000 to put for a down payment. I am currently a student and I make $150 a week on a check and I work another job in a restaurant that pay me cash and I make $550. So total is $700 weekly. But the thing is I never reported that cash to the irs.

And about my credit history. I have $0 overdue debt. I use to have some credit cards in collection but I paid them in full and they are reported closed, PAID IN FULL. I only have a student loan for $7000 and I been paying it for 6 month now and never been late all payment are on time.

What do you think? Can I get that house with no problems or what should I do?

At this time if you have not claimed the cash you recieved then to the IRS then you will not be able to purchase a home at all through traditional means. One option you might be able to pull off is to try and get a seller to carry the financing on the property for you. There is also the option of finding someone that buys purchase money mortgage notes and have them agree to purchase a note that a seller offers to make for you. You can set this up so by having the seller grant you with seller financing then have note buyer purchase the note immediately from the seller right after closing. 10% down can help you pull this off. There is a number of non-traditional methods that can be used to put your deal together you just need to find those that know how to make them work to represent you.

Hi,

With the recent tightening of the credit markets, reported income has become extremely important. In preparation for purchasing a home, I highly recommend that you begin declaring your income, so down the road you can prove it.

As far as downpayments go, there are still multiple programs out there depending upon credit worthiness, income, etc. One program that has become very popular are FHA loans, requiring only 3% down, plus closing costs that can often be rolled into the mortgage.

As far as past credit issues, most important will be the past two years. If your previous collection issues were paid and more than two years ago, that will probably not hurt your credit score greatly.

I suggest discussing your situation with a qualified mortgage professional and if you are unable to secure a mortgage now, come up with a plan to reach that goal in the near future.

Best wishes,
Christopher Rich
William Raveis Real Estate
Fairfield County, CT