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Advice regarding coapplicants and DTI

New Contributor

Advice regarding coapplicants and DTI

I'm in a situation where it would soon be avisable to get a new (used) car.  Anything really reliable is more than what I have saved.  I'm a full-time student, get by on financial aid and a part-time job.  I have almost no overhead, so I can use most all of my small paycheck for my car payment.  As well, I will return to full-time work when I graduate this summer.  I'm one year out of BK (as of Nov. 6th), with fair scores, but a very low income, as noted.  Here's my concern and questions:

 

With a gross income of about $1000/month (net of about $750), would this make my income too small to get approved for a loan allowing payments of between $200 and $250/month, for about five years?  I was thinking applying through Capital One, as they "preapproved" me a year ago when I came out of BK.  I had no income then as I was only doing school (heavy academic load). 

 

If a lender is concerned about my low, part-time income, my girlfriend said she would be willing to cosign; however, her DTI right now is considerable.  She has a car payment and a mortgage and cut back her work hours while finishing her graduate program.  Although her credit is better than mine, her DTI is an easy 50%. 

 

I can make my payments, there's no problem there.  I just don't think they'll approve me with such a meager income at the moment, and my only feasible cosigner has a high DTI. 

Any thoughts? 



Starting Score: TU 641 2/28/13 EQ 640 3/1/13
Current Score: TU706 EQ???
Goal Score: 750 750




3 REPLIES
New Contributor

Re: Advice regarding coapplicants and DTI

Bump



Starting Score: TU 641 2/28/13 EQ 640 3/1/13
Current Score: TU706 EQ???
Goal Score: 750 750




Epic Contributor

Re: Advice regarding coapplicants and DTI

I'd go ahead and do the capital one auto loan.
If approved then you can use that at the dealership to get them to compete to beat the rate
New Contributor

Re: Advice regarding coapplicants and DTI

Thanks, but do you think they would even approve it with my part-time income that low and with her debt-to-income that high? 

I also realized I have an unpaid tax lien that I'm paying down, but that might also affect it, idk. 



Starting Score: TU 641 2/28/13 EQ 640 3/1/13
Current Score: TU706 EQ???
Goal Score: 750 750