Is there a loan out there for me?
Hello, I'm an old regular from the rose forum but it's been a while and I forgot my username/password so I'm starting new. :) I'm in Texas.
I'm in a bit of a predicament... my husband has recently left us, and we (two daughters and I) are needing to move out of our home and into a less expensive one. Husband has agreed to buy out my portion of our present home, and is refinancing in his own name with a cash-out of $35k for my half of the equity. This money should be available to me within the next month, free and clear.
I have a part time job at $11k per year, and a small home business that showed a loss on tax returns the last few years. (It brings in an income, but claiming my home office, etc has allowed for several large deductions.) My credit score is 744-771. Because we aren't legally divorced, I am still considered liable for my husband's mortgage, PLUS I am not able to claim the child support he gives me because it isn't "official".
He has no plans to pursue divorce for at least a few months, and it wouldn't be finalized for who-knows-how-long. I simply can't wait around for that, and I refuse to initiate divorce myself.
I want to purchase a repo that I've found which I consider to be an excellent value and perfect for my girls and I. It's a fixer-upper and I think I could get it for $80-$90k. I'm afraid that if I wait too long, it will be gone and I'll have missed my chance and will be forced to rent an apartment or house for much higher monthly costs.
I have the ability to put 30% down on this house, but almost no income that I can document. I have the ability to easily afford the monthly note on the house, though I can't seem to prove that in a way that will satisfy a lender.
In addition to this, over the next few months when my husband does initiate the divorce, I will receive half of his 401k savings which I can cash out to the tune of $65-75k (minus taxes).
So knowing all of this... my question is, what type of mortgage, if any, could I possibly qualify for? Is there some sort of short-term or no-doc loan that I could get to buy the house now, and then refinance with more money once my 401k cash-out arrives, or once the divorce is final and I don't have his debts (mainly the present home) weighing against me? Any creative problem-solving welcome!
Please help... I'm not qualifying as things are with an FHA because my debt/income ratio is too high. I feel that if I could just get moved and settled on my own, I can deal with all of the other hardships involved in this in due time. Thank you for your wisdom and help!