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1st time homebuyer

Established Member

1st time homebuyer

I am wanting to know what can I do to buy my wife her dream house. Since Jan.2013 she has been working hard to improve my score to get this house she found for 159,900. She as paid off 3 of the 4 accounts in collection and got them deleted off my credit report. We are waiting on the most recent one to be deleted the first of March. So that should make the score go up more.She also have each account that was deleted in writing stating paid  in full and to be delete. My score has gone up tremendously from where she started.  My eq 565 Tu 659 ex 620

I make around 32,000 and have about 19,000 of debt which include a car loan with a balance of 17,000. If anyone has some positive information for me please share it. I need some advice n FHA and USDA loans as well. 

Message 1 of 11
10 REPLIES
Super Contributor

Re: 1st time homebuyer

 
Retired Lender
Message 2 of 11
Super Contributor

Re: 1st time homebuyer

that is a lot of house for $32000 income

 

what is car payment?

do you know how much taxes run?

 

Retired Lender
Message 3 of 11
Established Member

Re: 1st time homebuyer

The car payment is 455

I see the annual taxes 1147.43

She makes around 20,000 but her credit is not good from past relationships. 

Message 4 of 11
Super Contributor

Re: 1st time homebuyer

car is only debt payment?

 

this house + car pmt puts your debt ratio over 55% and doesnt include any other pmts

i know i dont go that high..... and you would need serious compensating factors if you found a lender who did.

 

Retired Lender
Message 5 of 11
Highlighted
Valued Contributor

Re: 1st time homebuyer

I also agree that the home price is a little steep based on just your income. The most that you would likely get approved for is $128K and that assumes very little debt. You have a extremely high car payment for just your income and that is severely impacting your DTI. You would need to put $30K down at a minimum. If you live in a community property state, you will have to include her debts in the DTI ratioed against only your income.

If she can qualify for the loan, the home price would be feasible. What is hurting her credit so bad that you think it is unfixable?
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 6 of 11
Established Member

Re: 1st time homebuyer

OP, your debt as compared to your income is simply too tight at current.  However, I'd look into the differences between your Equifax score and the others since it appears it isn't reporting the same information given the large difference.  Maybe the EQ score is missing your deleted collections?

 

As MovingForward says, that car payment is holding you back.  Maybe once the EQ score gets righted you can 1) refinance or 2) trade for something with a lower payment.

 

Does your wife have no income currently?


Starting Score: 707 (Experian); 702 (Equifax); 740 (TransUnion)
Current Score: 776 (Experian); 753 (Equifax); 780 (TransUnion) as of 09/11/2014
Goal Score: 800


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Message 7 of 11
Established Member

Re: 1st time homebuyer

She does have income. Her annual income is about 22,000. Her scores are in the low 500. I have talked to several LO and not been able to get any information about FHA or USDA loans. Each time I speak with one they always want to pull my credit. I am wondering if I could get the car refinance? Will my current scores allow it? Any suggestions would be helpful.

Message 8 of 11
Valued Contributor

Re: 1st time homebuyer

What is your current interest rate on the car?
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 9 of 11
Established Member

Re: 1st time homebuyer

My current interest rate is very high not for sure what the number is but I can tell you that we pay 455.25 a month for 72 months. The car was 19,000. before Financing.

Message 10 of 11