Single Mom Buying a Home (x-posted WAHM Well)

[kokonutmama]

I'm feeling very frustrated right now because my WHAMy biz is doing well enough that I can afford to buy a house and move out of my parents' place. At least, I know that. Unfortunately, according to the lenders I've talked to, since the biz has only made money for a year and I had no income before that (I was married, and then working on getting income, not actually making any money) I don't qualify. This min is 2 years. Some lenders will give a "stated income" loan or a "no income" mortgage, but that kind of loan is not allowed in some states, including the one I'm most interested in moving to at this time, plus the rates are much higher and the closing costs are outrageous.
This is very frustrating to me having gotten this far and suddenly finding out it's not the end, it's only half way.
I guess I could rent, but that just feels like money in the toilet... though with the rates I'd be able to get, it might be a better choice... I was just so looking forward to reaching this point and becoming a homeowner, sigh.

Anybody BTDT? Advice? Hugs?

[pranamama]

I am waiting for my credit to improve. If you can, just put away your monthly payment on your chosen home and save it for the down payment. It will also help you decide if that payment is comfortable for you to make.

[rharr!]

It is frustrating, eh?

Here, the mortgage broker said they need 2-4 years showing an increase in come. all jobs from an employer must be for 2yrs.
I did qualify, just because I have been self-employed for 4yrs, and I do have a part-time job where I am an employee. It is stupid that the fact I have an employer counts for more than my much larger self-employed income.
But us single moms are such a drain on the system we are not to be trusted

I would either put your 'mortgage' payments into a bank account for now and/or find a co-signer. A co-signer does not have to be on for the full term. After a year or two of good payment histiry they can be removed from the agreement.
You could probably be approved right now if you have a co-signer.

[singin'intherain]

Have you looked into any government first time homebuyer programs? I know that with your self employed income, you will run into trouble. But the requirements for government programs are I think less stringent. There are federal ones through HUD and I know my state has some programs, too.

Good luck!

[fuller2]

Homebuying is not all it's cracked up to be. It can be far more expensive than renting, for one thing. Check out the threads in Frugality and Finances for many interesting opinions on this.

I bought my house with a "no-doc" loan because I have excellent credit. Totally legitimate, but interest rate was about .25% higher. (but was still really low) Problem is that homeowning has turned out to cost a lot more $$ and time than I anticipated, and in some ways I wish I had kept renting. We'll see what happens when I sell it though.

[momazon4]

The way I bought my house was with my Dad cosigning for me. I had NO credit rating to speak of and no income at that time because they didn't count child support.