Ok, I have a few questions as my husband and I plan to purchase a home in Texas, during the early summer of 2012. We'll probably go the FHA route. I know alot can probably change with interest rates, FHA requirements etc, but want to see what we can plan to do and expect when it comes the time to purchase our home.
CREDIT -
Husband's - very poor in the mid to upper 500's (in student loan rehab, which should boost his scores next year)
Mine - lower 700's
1. Employment -
- My husband is a teacher, this is his first year teaching (not very good employment history before this year - 1 year as a correctional officer) Will have 3 years of teaching at this school when we move (but will have a new employer when we move)
- I am self-employed. I will have 2 years of self employment history on our tax returns come 2012 (for 2010 and 2011).
2. Income -
- My husband's income is $44k + $2500 and $7000 stipends for coaching. He plans to continue coaching (the $7k stipend) for the next couple of years, so about $51k. - My self employment income is still to be determined, but looking at about $18-24k after deductions.
So, total is = $69-75k/yr
3. Debt -
We have an auto loan of which we are considering paying off to increase our loan amount that we will qualify for. The payment is $345. If we pay it off a month or two before we try to get a house, it will probably be $5-6k (ouch).
My husband has a student loan (that is currently in rehab) for $337/month, but I'm sure will go up to $400/mo or so after it's sold. ($44k total loan)
So, total is = $400-745/mo
4. Down Payment -
Total = $15-20k
Questions:
How much do you think we'd qualify for?
Do you think we should pay off of my husband's auto loan before we get a mortgage loan?
Will my husband's employment history be okay? We will be moving to a new city and he'll either be getting or just got a new teaching job when we apply for the loan.
Thanks!
Lisa
