Can I get a mortgage and how much can I borrow?

Anonymous · ‎08-26-2017

I am married but I want to purchase a house on my own. (I will be the only applicant)

1. Mortgage Credit Scores:

TU: 654, EQ: 677, ES: 649

2. Credit Negatives:

Type:Medical collections, student loans
Status: Medical collections: $2100, on payment plan. Student Loans: $61000 total, monthly payment is $33 payments up to date & on time for he past 6 months. Anything not paid by 2028 will be forgiven..

3. Gross Income. $40,711/ yr

4. Source of income. Employed full-time & Disabled minor son receives $8820/ yr in disability.

5. Monthly debt payments. $120 medical bill, $33 Student loan.

6. Employment (for those who are employed).

Type of employment:full time
How long: 1 year
How long have you been in the industry/career field: 3 years

7. Assets/Reserves. $4000 in checking

8. Location: Olive Branch, MS, Southaven, MS or Oakland, TN

9. Property Description:

Single family home, possible new construction.

10. Property Value. $100k-$200k

11. Occupancy.

Primary residence, 4 occupants; 2 children (1 disabled child)

12. Transaction Type: purchase

Anonymous · ‎08-27-2017

Well one thing to keep in mind is the higher the purchase price the larger the down payment and closing costs. You should see if you could qualify for USDA loan either direct or guaranteed as it is zero down payment but there are still closing costs unless you get seller concessions.

Sbrooks1 · ‎08-27-2017

Is the student loan in an IBR plan? That may be a consideration as well for FHA. I am not sure how USDA handles student loans

Anonymous · ‎08-27-2017

yes, I am on an income based payment plan

Anonymous · ‎08-27-2017

I actually prefer USDA. Im not worried about the down payment or the closing costs. we are able to handle up to 10% down payment along with the closing costs on anything below $200k

Anonymous · ‎08-27-2017

I just need to know if it is remotely possible to obtain a loan with the information given. I have a little less than a year left in my lease and where I live, its a LOT cheaper to own. Im just sick of wasting money when I know I could have what I actually want for less. For what I pay in rent I could have something much nicer.

Anonymous · ‎08-27-2017

Yes and you will need to contact a officer to get a loan app going. Don't know have any clue how much you will be approved of as they have their own way of determining max. I do know a good chunk of payment goes toward insurance and taxes so the lower you can get those costs the more spending power you will have. USDA has lower DTI limits so You might get more spending power with FHA but don't know if that is front end (mortgage) or just total debt load.

Anonymous · ‎08-28-2017

Good luck on your home search. We are looking in the same Desoto Cty area but are including Nesbit and Hernando.

Sbrooks1 · ‎08-28-2017

Both USDA and FHA will count 1% of the student loan balance in an IBR plan as the monthly payment for DTI purpose. So, 610 month for you will be counted. You have no other monthly bills? No car, loan, credit card???

Sbrooks1 · ‎08-28-2017

Is this a community state? Just rough figures counting your SSI income and taking it to the max allowed at 41% DTI you can't have more than around 960 mortgage note including taxes and insurance . Not sure how the SSI is counted but I included it