fro exercising court order. NO sep agreement yet. Help

[geena]

I have been split for a year. No separation agreement yet. Court ordered child support and spousal. Ordered house in my possession till sold..it is sold now. And I was awarded sole custody of my child. Husband had an affair.
Fro is exercising the court order, however, I don't have a separation agreement yet. Support payments are ordered, but the court is going to review his income again, so it may be tiny bit less, but I am getting money from FRO.
Support order is generous. I want to buy a house. I can afford it, but because we still have to split assets, no separation agreement has been done. Its been over a year, so we have been apart long enough for a divorce.
I need to have his support as proof of income for me to get this house, and i need to know what i have to do to purchase the house I want and can afford in my sons school district.
I'm self employed and don't make a lot. SO I don't have a lot of income. Not even worth mentioning really, however it will be an added source of income.
Can I just get a letter from fro for the bank? I have been awarded a large monthly support order that more than enough covers my payments and my sons needs. My job is not busy, but not on a full time basis as it was a cash supplement when we were married as he wanted me home with our son so I quit. quitting put me in a non income class for a couple of years. So not fair.
SO, basically I need a bunch of advise and brainstorming. I want this house so bad, but need ways to secure the banks decision for a mortgage.

 

[standing on the sidelines]

I am not sure that the bank will accept the FRO order as a source of income. They will look at the fact that it ends when your child is a certain age and then your income goes down. They will look at your income and your expenses and the cost of the house you want and the payments. It reads as you have no income really and any income you get will be in the form of SS and CS. The bank may not like that.

You say you can afford the house but then say you need his support (SS I take it) as proof of income. Did you get very much equity for the house that was sold?? Is your basis of being a house you can afford based on what you expect for CS and SS?

I would go to the bank and just ask them what they can do for you. They may be able to give you some suggestions on how to do it or they may tell you to forget it. If they do that then you have to get creative. Talk to a mortgage broker and see if they have anything they can do. If all else fails see if family will help you out.

You may have to lower your expectations and rent for a while until you get a steady income. I wish I had more ideas but that is all I could come up with.

 

[mominont]

I'm confused..in one post he's paying you, in another post he's not.

Personally I wouldn't buy a house when there is a chance that your ex may not pay you.

mominont

 

[geena]

I have a job but I am self employed. My job was always used as funds to play with..entertainment. NOw, I use it as a source of income. This year will be the first year where my business has started making money. Due to working more. Most money I get is cash, so I only have my records, not an employers? I can afford the home on my own. Spousal is not long term. Not relying on it, and know its not forever. Yes there is some equity. I have been given half of it, waiting on the other half. I'm waiting on court. My case keeps getting put off to the next date. getting expensive

 

[Mess]

mominont, as I read it she is getting support through the FRO, she is just saying she needs the support to cover the mortgage if she gets a house.

geena, it is too bad that you couldn't have just stayed in your original home, taken a second mortgage and paid off your ex for his half. The bank would have been more obliging.

You are in a situation comparable to a student. A student could have money for 4 years from student loans and bursaries but beyond that can't show that they would have income after 4 years so they wouldn't get a mortgage very easily.

You can show that you will have support income for a limited time, for our purposes I'm assuming your child is 8. So you would be receiving support for 10 years until child is 18. You can show the bank that this income will be stable for a ten year period. You could try to negotiate a mortage with a ten year amortization.

You hopefully have a substantial down payment available for the house, hopefully as much as 50% of the cost? Since you got 50% of your other house, and let's assume you find something a bit smaller and cheaper. This avoids added cost of mortgage insurance and lowers your monthly payments.

If you only have a small down payment available, then the bank will be "risking" their money more. Let's not get into how much risk they are actually taking... They will require a large down payment.

It will help if you are able to show that your self employment income is solid and that you have a business plan to keep it growing. If your business stalls and your income even just remains the same then you will fall behind due to infation.

Your house will have many costs. It will need repairs and maintenance and appliances will break down and floors will show wear and tear and windows will get broken by baseballs. You need insurance and will pay taxes and utilities which will only go up in cost over the years. If you don't continually invest in maintaining your house it will become rundown and lose value. This will be obvious to the bank and you need to show that you have money available for an ongoing maintainence and repair budget.

It is a tough sell. After the mortgage debacle last year banks are very careful with who they give money to these days. All of these things I mention, you need to work out a business plan to take to the bank. You are making a business proposal to them and you have to have all the bases covered. The more you can show them this, the more likely you will be successful.

 

[geena]

thanks so much. The advise I'm getting is great. I see what you are saying about the student/me.
The house I was in was way too big.
Out of the school district. Just not a good plan. The home I want is a lot smaller and cheaper. 50% down. yikes. that's a lot. I have ten so far.
I'm hoping I can get my self together.
I know I sound silly, but I know I can do this. Before my husband I would work 3 jobs, so that I always had money. I would never get into a situation I couldn't handle. But I agree, the bank does not deal with people that way.
I am going to need to be creative.
Anyone want to give me money? lol Kidding.

 

[Mess]

You're not being silly, knowing you can do it is the biggest most important thing. Everything we say here is not a barrier, they are challenges and you can beat them, it just takes figuring out how.

 

[geena]

Thanks to everyone. I GOT THE HOUSE!!!
Bank looked at the court order and were comfortable with the amount that I showed as support, as well, I was able to put more than the 5% required. I put 10%.
I just hope now I can find a way to protect myself and always have a home?
Can I put my mom on my deed and have it as her and my house? Would that protect me say if I had another relationship down the road?
I don't ever want to be in a position like I was in recently. Not having a home for my son has been horrible. We are in a nasty apartment right now, and it is just terrible to be stuck here. We lived in a very large beautiful home, and got the rug pulled out. "riches to rags" so to speak. I'm not a snob, but it has been a wake up call. I know I"m not on the street, that is the worst, but for my son, it has been difficult to adjust to such a different lifestyle, along with the trama of his parents being on such horrible sides of the fence.
Thanks everyone for your help!

 

[standing on the sidelines]

Thanks to everyone. I GOT THE HOUSE!!!
Bank looked at the court order and were comfortable with the amount that I showed as support, as well, I was able to put more than the 5% required. I put 10%.
I just hope now I can find a way to protect myself and always have a home?
Can I put my mom on my deed and have it as her and my house? Would that protect me say if I had another relationship down the road?
I don't ever want to be in a position like I was in recently. Not having a home for my son has been horrible. We are in a nasty apartment right now, and it is just terrible to be stuck here. We lived in a very large beautiful home, and got the rug pulled out. "riches to rags" so to speak. I'm not a snob, but it has been a wake up call. I know I"m not on the street, that is the worst, but for my son, it has been difficult to adjust to such a different lifestyle, along with the trama of his parents being on such horrible sides of the fence.
Thanks everyone for your help!

If you ever let a guy move in with you just get an agreement in writing before he moves in that the house is yours and he is paying rent. Do not let him use the excuse that he thinks you do not trust him and if you did you would not ask for an agreement. If he is not going to screw you around then there would be no issue in signing to make you feel better. As for putting your mother on it I would not do it. If you and her have a falling out (it may happen no matter how great your relationship is with her) you may be in the same boat all over again. If the bank is willing to give you the mortgage then keep it in just your name.