topic Re: think i can get a home loan with this situation? in Mortgage Loans

think i can get a home loan with this situation?

altimatuner59 — Sat, 11 Apr 2009 19:50:23 GMT

my scores are tu723 eq708 no idea on exp i have a 120 day late from 6.5 years ago on a student loan that is a joint account with my mom, no collections no missed payment. the only tough part is that ive been on the job for 4 years, and my w2's only show me making 13000 a year. in janurary i got a raise, im getting 2200 bi weekly now yay! but, i dont have w2's showing that obviously. i plan on putting 10% down and doing a conventional loan, do you guys think i will be approved? looking to buy in the price range of 75k-130k. tia guys!

Re: think i can get a home loan with this situation?

teacherhere — Sat, 11 Apr 2009 20:05:05 GMT

I don't think the W2s will be a problem. They will probably ask for a month of paystubs. Without knowing what debt you have, I can't help too much. But with your income, 41% dti would allow about 900 a month of debt including your mortgage payment(mortgage, interest, taxes, insurance and PMI)

A 120,000 house with 10% down at 5.5% has a mortgage/interest payment of about 630.00. PMI is going to run you about 75.00 a month so you are up to 695.00. See if you can figure out taxes and insurance for your area and calculate it in.

If you have any other debt payments, this changes everything.

Your scores look ok, job history is fine, no baddies on the reports in the last 12 months.

Have you money for closing? You can negioate seller assistance but if not, count on another 5-7%

If money is an issue, consider FHA, it is 3,5% down.

Re: think i can get a home loan with this situation?

altimatuner59 — Sat, 11 Apr 2009 20:12:55 GMT

they estimate the payment taxes and insurance complete is to be around 965-980 a month. total down, with closing they are estimating it to be around 16k. and they said to have 3months of check stubs showing what i make now, which i do have. so it looks like it maybe possible! jeeeeez i hope so, i dont want to rent and i dont want to live with mom and dad anymore lol! 13k in the bank right now

Re: think i can get a home loan with this situation?

UpUpUp — Sat, 11 Apr 2009 20:20:56 GMT

Typically 41% is the back end ratio. That's the total of any debts plus your PITI payment can't go over 41%, but that does NOT mean your mortgage could take up 41% of your income. People often get that confused, so just wanted to be sure that you realize that.

Re: think i can get a home loan with this situation?

altimatuner59 — Sat, 11 Apr 2009 21:52:30 GMT

piti? ...

Re: think i can get a home loan with this situation?

ladyofnight — Sat, 11 Apr 2009 22:06:31 GMT

Principal, Interest, Taxes & Insurance = PITI :)

Re: think i can get a home loan with this situation?

teacherhere — Sat, 11 Apr 2009 22:21:24 GMT

up is right and that is why I posted, if you have debts you have not listed, that changes everything!

Re: think i can get a home loan with this situation?

altimatuner59 — Sat, 11 Apr 2009 23:30:51 GMT

the only other considerable debt i have is an autoloan of 569 a month. and student loan at 115 a month.

Re: think i can get a home loan with this situation?

teacherhere — Sun, 12 Apr 2009 00:04:14 GMT

I hate to be the bearer of bad news but with the income that you are reporting and the debt that you just reported. I don't see this happening. Your 41% allowabe dti=900 and you just posted 684 of debt. That is only a difference of 216 a month.

Re: think i can get a home loan with this situation?

UpUpUp — Sun, 12 Apr 2009 00:33:38 GMT

But what I'm also saying is that the 41% is only if you have other debts. You can't have your housing payment be 41%. That's usually more like 30something% that is allowed for housing payment, then any additional debts PLUS housing can't be over 41%. So, you don't figure out the housing payment as 41% even if there are no other debts.

Not sure I am articulating this properly, but basically the housing payment is not allowed to be 41% (unless automated underwriting approved something higher and it was able to get through) - it's housing payments plus any other debts can't be higher than 41%. Your total housing payment is usually ahve to be in the 30something % range.

Re: think i can get a home loan with this situation?

mickie08 — Sun, 12 Apr 2009 00:37:12 GMT

Typically I think houseing is 31 and total is 43% for FHA... It used to be 29 and 41% I believe. Anyways, you can get approved at 41% housing DTI but it is tough. You have to have some compensating factors such as outside income, high FICO, great job history, etc.

Re: think i can get a home loan with this situation?

UpUpUp — Sun, 12 Apr 2009 00:38:42 GMT

mickie08 wrote:
Typically I think houseing is 31 and total is 43% for FHA... It used to be 29 and 41% I believe. Anyways, you can get approved at 41% housing DTI but it is tough. You have to have some compensating factors such as outside income, high FICO, great job history, etc.

Thank you.That sounded much better than what I was trying to say. Hehe.

Re: think i can get a home loan with this situation?

txjohn — Sun, 12 Apr 2009 00:41:01 GMT

Maybe I misunderstand or missed something.

I thought OP said he had gotten a raise to $2200 biweekly, which is $4400 monthly. 43% of $4400 is $1892. If you deduct $569 car payment from that, you have $1323.

31% of $4400 is $1364. Seems that if they accept pay stubs and a letter from employer, he has adequate income for a mortgage payment under $1000 as he suggested.

Did I misunderstand his income....is he only making $2200 per month paid biweekly?

Re: think i can get a home loan with this situation?

UpUpUp — Sun, 12 Apr 2009 00:49:27 GMT

txjohn wrote:
Maybe I misunderstand or missed something.

I thought OP said he had gotten a raise to $2200 biweekly, which is $4400 monthly. 43% of $4400 is $1892. If you deduct $569 car payment from that, you have $1323.

31% of $4400 is $1364. Seems that if they accept pay stubs and a letter from employer, he has adequate income for a mortgage payment under $1000 as he suggested.

Did I misunderstand his income....is he only making $2200 per month paid biweekly?

I actually was thinking the same but thought I was loopy. I'm exhausted and drained from my own horrifying experience. Though I think the front end ratio will still need to be in the 31% range, that still puts OP in range for the price that they were looking at. I think maybe the others missed the biweekly comment and maybe thought it was monthly?

Re: think i can get a home loan with this situation?

teacherhere — Sun, 12 Apr 2009 01:57:38 GMT

whoopppssss! I missed the biweekly part. I am packing to move (provided I close Fri as planned...lol) and did not read well. I apoligize to the OP!

Re: think i can get a home loan with this situation?

altimatuner59 — Sun, 12 Apr 2009 06:28:42 GMT

yes, 4400 a month. apology accpeted :smileywink:

Re: think i can get a home loan with this situation?

keikospals — Fri, 08 Oct 2010 15:29:08 GMT

I'm sure you could get a loan with that income. But, had you posted before you bought a car I would most definitely have advised you to NOT borrow money to buy a car!!! Think of how much nicer a house you could qualify for if you didn't have a $500+ car payment. . . What's going to impress chicks more (sorry other posters but there's just no other way to word it) - your now-not-so-new car that is worth a fraction of what you paid for it, or having your own place to live, possibly with a pool, hot tub, home theatre room, gourmet kitchen, lake view, or whatever? Something to think about.