My husband and I are getting ready to purchase our first home. We have found the perfect house for us and everything was looking great. Income, credit, all that jazz. Well, then the issue of overtime got brought up. My husband has been with his current employer for 6 months-- we moved here last year from another state. He was at UPS for 6 years prior to the move. Well, he now makes the majority of his income from overtime. Overtime IS a regular part of his job. He works shift work: 3 days, 3 nights, 3 off (so essentially, 6 on 3 off, repeat) and 12 hour shifts. This averages out to about 62 hours per week. He also gets a vehicle allowance and a "per diem" that we aren't factoring in.
Well, we just found out that because he hasn't gotten overtime for the past 2 years, they cannot consider that as income-- which DRASTICALLY reduces what they will consider as income. I work very part time taking care of kids and am not a W2 employer. Which I am kicking myself over, because I left my FT job just 5 months ago (due to my husband and I going days without seeing one another.. it just wasn't worth it).
We have someone who offered to cosign with us. He is extremely wealthy and there is no issue of trust at all whatsoever. I am pretty confident that he could just buy our house outright if he wanted to, lol. We are so thankful for him and are leaning towards this option. However, we are quite bummed about having to bring someone else in (even though he will be paying no money whatsoever). We plan on refinancing in 2 years so that we can remove his name from the loan.. but I have heard interest rates are going to start going up this year (they went up .25% in the first week we started looking for a house!) so there's no telling what rate we may end up with. But, if we wait 2 years to purchase we will end up with that potentially higher rate anyway.
We have to move regardless. Our lease ends in April and we had to give a 60 day notice. After starting the process and being told everything looks good, we went ahead and gave our notice to avoid paying rent and a mortgage at the same time. My inlaws live here, so if we don't close in time we can stay with them until everything is settled. No biggy. We do not want to continue renting-- we'd rather put that money into something that we will eventually own. Plus, we desperately need a yard for the dogs. We are also TTC, and I really don't want to move now, then again in a couple of years.. I've had all the moving I want!
I guess a cosigner is the only option we have. Would you go through with it and have the cosigner if you were in this situation? Are there pros or cons that we haven't considered? (yes, we know that the cosigner would be affected if my husband (God forbid) lost his job, became disabled, etc)
Thanks for any insight/advice. I guess I really just need to talk it through. :)