A question about qualifying for FHA loan.

[Anonymous]

Is your LO running the numbers with all the credit cards paid off.  The reason I ask is that if you get all the CC paid off, your scores will bump a bit, and your DTI will lower a bit.  The other option to try and squeeze some DTI room is to get your student loans deferred for a year.  Don't use these as reasons to overspend, but if you are confident of making the higher payment without any real problems, then you may be able to squeeze a little more headroom.

[Anonymous]

I just emailed him asking if we eliminated the cc debt.  I figured if it helped a lot, we could use some of our savings to pay it down.  Not sure if we want to do that unless it makes a big difference.  Our scores really are not the issue, he said we would qualify right around 5.875%, less if we paid it down.  I think the only way for deferrment would be to enroll in school.  That can't happen until I qualify for tuition assistance next month, otherwise I will be making payments or using savings.  I guess we will look in our range, or wait an entire year with her on the books for her other job, and hope I get a raise.  I am pretty sure that we can go as high $115k on a purchase price, put more than 3 or 3.5% down, or use the power of negotiation to get what we want.