Another "do we qualify" post

[Anonymous]

My wife and I currently own a home and are looking to build or buy in the next year/year and a half.  Here are our stats

Middle mortgage score- 732 for me, 670 for my wife.  Had a couple collections on her report that shouldn't be there.  Hospital sent bill to collections after we had paid it.  Her score should go up quite a bit soon.  

Gross income- 150-160k

Current Mortgage- 855

Truck-700

Car- 585

Student loans- 600 total with IBR payments

Boat payment- 250- Can be sold easily if I need to

Personal Loan- 324- Will try to have this paid off prior to applying.  

Credit cards- small balances on 0% interest cards that I will pay off prior to applying. 

Looking to build or buy for around 250k.  We own 130 on current home.  Houses similar to mine have been selling around 160-165 in my neighborhood lately.  Whatever we actually make off of the sale will go towards down payment.  

Do we have a chance here? 

[ShanetheMortgageMan]

Your debt to income ratio will be fine - in the 30's.  Sounds like credit should be fine if the only negatives are some medical collections.  If you can put 5% down then you should have conventional financing as an option, which will be OK using the $600/mo IBR payments.  If you can only put 3.5% down then FHA would be your option (assuming not a military veteran), which won't use the IBR payments, but allows a much higher DTI to qualify anyway.  Based on the info you provided, I'd say your chances would be very good.

[Anonymous]

Right.  Only real negative credits are on my wifes report.  Should be removed soon.  Just called them about it again and they said the request has been made.  Hopefully, her mortgage scores will go up.  They were all in the 700's prior to that showing up.  We really would like to get a construction loan.  The land that we have is paid for so it could be used as equity.  Bank told me that could finance up to 90% but that wasn't with running credit.  Do you think I need to get rid of the boat? 

Thanks!

[ShanetheMortgageMan]

Nope, wouldn't need to get rid of the boat.