can you have a second home with a 800 credit score and history of low income?

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my friend has an apartment in Los Angeles, it is worth 300K. She tried to start a business and quit his job 2 years ago. well enough to say that business and was not running so well, so they went out and got a home equity loan of 50K. It wastes money and 25K credit line. Remember that they have no income (REAL JOB) coming in a little money of their business.  just discovered that a mortgage on his apartment ARM, which they pay interest only and it is now added up to $ 2,500 per month. They finally out of it though, but I have a real job very well paid to Los Angeles and decided to rent, moving for work and to help a friend pay for mortgages, credit and mortgage because they are upside down on the property. Now she has a tenant in his apartment, she is now trying to buy a house before with her friend. Is this possible with all service mortgage there? It only 2 1 / 2 months, no: it has a credit rating 801  pay all their bills on time and in full was late a few times on their line. Is it legal ? Is this possible?

  1. Reply
    Ed Atun
    January 20, 2011 at 9:44 pm

    Yes, she can. You described the scenario well. The going interest rate today is 6.75%. When she buys the foreclosed home, she will pay 8.5%. Why. Because the bank understands exactly what is going on in her life. She has no secrets. If she tries to “fool” the bank, they won’t let her have any loan.
    And yes, when she gets her affairs in order (when she marries you and you fix everything), she can refinance and get a 6.75% loan on her 2nd house.

  2. Reply
    January 20, 2011 at 9:49 pm

    Lenders aren’t going to like that she has only been at her job for 2 1/2 months. They really like for a person to be at a job for 2 years or more. Is the rent enough to cover the $ 2500 payment? Some lenders don’t like to include rental income either, especially if it hasn’t been very long. It doesn’t sound good but the only sure way to find out is for her to call some lenders and ask. The worst they can do is say no.

  3. Reply
    January 20, 2011 at 9:53 pm

    There is something I am sure she is not telling you. Unless she has faithfully paid these loans on time she is not going to have a credit score of 801.

    The short answer is that as long as she can show proof that someone is renting out the original property and it’s not her, she can buy another house without any issues. Even with a 720 score.

  4. Reply
    MM C
    January 20, 2011 at 10:49 pm

    An excellent credit score can only help her to get a good interest rate. The lender still has to check her income/debt ratio. If it’s too high, they’ll denial her application. If her friend also has excellent credit plus a high pay job and no debt, she has higher chance to get the loan.

  5. Reply
    Julie H
    January 20, 2011 at 11:02 pm

    You can only teach him if he wants to learn. It doesn’t matter what you want, he has to agree to it. He sounds very immature and selfish. He wants to quit his job so you can work to pay all the bills yourself. This guy is no overachiever. Sounds like a mama’s boy that has been spoiled. The best way to bring him to reality is to dump him. You can do better. He isn’t going to change, he will only get worse. Let him be some other girl’s problem.

  6. Reply
    January 20, 2011 at 11:32 pm

    I generally hate when people say the simple phrase “you cant change him.” but in this case, that is truly what needs to be said.

    he’s not gonna change. you can try to attend couple counseling, and attend financial peace university classes, but for the most part, I’d say you have no hope and would be better off just giving up on this one.
    if hes not already MOSTLY the kind of guy you want to marry, then dont waste more time on him.

  7. Reply
    January 21, 2011 at 12:23 am

    I think YOU need to consider the following rather than Mothering your man.

    1/ Work with money as a tool. Find a financial planner and work your way out of your own debt. He’s a boyfriend- no legal ties. He can join you in learning but take care of your own problems first.

    2/ Nothing wrong with wanting intimacy- ever. And, if you don’t plan to stay sexually active with a husband/boyfriend what is the point of being together? You could just be f-buddies.

    3/ Your choices about your sexual preferences are YOURS not his. If you don’t find his desires or fantasy sharing are appealing, move on.

    4/ Men are expected to provide, overachieve and earn more than women? HAAA- what century do you live in. Woman-up girl, it’s 2010 and I find your attitude insulting to me and for men.

    5/ He’ll do what he wants, when he wants. If he was actually interested all of what you want in #5 would be started by now- get the hint.

    6/ If you don’t think he has what it takes for you now, it’s not coming, with you.

  8. Reply
    Cattie T
    January 21, 2011 at 1:11 am


    If he does not want to be responsible, you are not his mother and you are NOT going to TEACH him.

    You are in for years and years of heartache if you you think you can mother your boyfriend into being a good husband.

    My advice has nothing to with sex. Over the long haul, accountablility, trust and responsiblity become the foundation for an ongoing friendship and love. Then after 15 years, you will still want to have sex with him.

  9. Reply
    January 21, 2011 at 1:54 am

    regardless of whether your opinions/ ideas about how your life should be run, is “right” or “wrong”, isn’t the issue, neither is his idea of how life should run. What I just read in your question, wasn’t a question, but a list of reasons why you should not marry him that explains how you guys aren’t on the same lifepath/ direction

  10. Reply
    January 21, 2011 at 2:43 am

    1. Ask him to read proper books of overachievers

    2. You need to take him to church daily.

    3. See 2

    4. See 1

    5. Tell him to look at other high earners.

    6. Yes, if he is willing to change and actually loves you.

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