mortgage question for newbie

[gamecock43]

Will this always be a problem for us? I realize that this lifestyle isnt going to necessarily end well later on because neither of us will have steller resumes that our peers will have built up, but I know we will be ok if not comfortable because we are responsible and involved with our finances. But even if I pull out a home equity to cover the cost of the house...down the road will we still continue to encounter these problems of not qualifying for mortgages or whatever even though we have nothing scary in our histories? Or will paying back a home equity loan with a low income prove to future financial institutions we are safe borrowers?
Sorry for the questions..i know this is not a conventional situation. I am really just trying to figure how much $ a bank will lend us.

[Gruntina]

A bank will base their decision to loan you money based on FACTS and not 'probability' of how you will come up with the money to pay the mortgage.

I am sure you can come up with the money to pay the mortgage in a non-traditional way but in the eye of the bank, under the table jobs and the like income does not count. If you’re not paying taxes on those incomes, it’s considered tax evasion and illegal.

Banks or lenders want to protect their business as well avoiding legal issues. I am not a bank so I cannot make a determination but as far as personal opinion I think it will be hard to get a mortgage. I think you are doing great with your lifestyle and saving good money on low income and showing proof that you do not have to follow a standard rule to be living the good life, you will be hard pressed to get a mortgage as mortgages services are general services which requires general common requirements of obtaining proof that you have a steady income with low ratio debts. In your case, your lifestyle of obtaining income is not considered the stereotypical “General” way of obtaining steady income even though you have assets. You seem to be the opposite of high income and low debts, you seem to have low income and high assets (assess that you do not want to touch). The rental can be income but that alone is not sufficient enough.

[Seeker]

Will this always be a problem for us? I realize that this lifestyle isnt going to necessarily end well later on because neither of us will have steller resumes that our peers will have built up, but I know we will be ok if not comfortable because we are responsible and involved with our finances. But even if I pull out a home equity to cover the cost of the house...down the road will we still continue to encounter these problems of not qualifying for mortgages or whatever even though we have nothing scary in our histories? Or will paying back a home equity loan with a low income prove to future financial institutions we are safe borrowers?
Sorry for the questions..i know this is not a conventional situation. I am really just trying to figure how much $ a bank will lend us.

Your best option is that when you do get serious to purchase, will be to sell off that condo in San Francisco. The savings there-in and the serious (large-down payment) down-payment on a new place for your residence will mitigate the bank's risk, because your loan will be smaller.

Your income is just too small, and if that changes when you're "ready", then your financial picture may change too. But ultimately, banks look at documented income and your ability to pay with that income. The greater the down-payment the more serious a buyer they see you as, and the more willing (if the income is also there to justify the purchase) they will be willing to grant you a loan.