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Do I qualify for a morgage ?

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pat0812
Regular Contributor

Do I qualify for a morgage ?

I'm thinking abour making my first home purchase this year

I'm self employed with an annual income of $130,000 this last year.

I have been working on my credit for 4 years now and all my FICO scores are between 745 and 759

I have 80K in available CL on all my cards with UTI of 6%

No baddies

I got 1-2 inquiries in last year on all of CB

The only negative thing I have is that my credit age is low. My oldest account is 4 years old and my average age is 2 years and 2 months

 

I wanted to know if you guys think I would qualify for a mortgage.

What's the difference between first time buyers or others ?

 

Where will I find the best rates? Broker or Banks / Credit Unions ?

What amount of loan could I get with my income? And how much % do you have to put down most of the time ?

 

 

FICO 8's EX 770 EQ 751 TU 771 (1/16/17)
Amex Gold Premier rewards ( Charge Card)
Amex Blue cash - $47,800 Wells Fargo - $15,000 Citibank Simplicity - $13,800 Barclays Apple - $13,000 Walmart Mastercard - $8000 Chase Slate - $7,200 Discover It - $5,500 Capital One - $5,250
9 REPLIES 9
Anonymous
Not applicable

Re: Do I qualify for a morgage ?


@pat0812 wrote:

I'm thinking abour making my first home purchase this year

I'm self employed with an annual income of $130,000 this last year.

I have been working on my credit for 4 years now and all my FICO scores are between 745 and 759

I have 80K in available CL on all my cards with UTI of 6%

No baddies

I got 1-2 inquiries in last year on all of CB

The only negative thing I have is that my credit age is low. My oldest account is 4 years old and my average age is 2 years and 2 months

 

I wanted to know if you guys think I would qualify for a mortgage. Can't say as you didn't mention the home price or any other debts you may have

What's the difference between first time buyers or others ? First time buyers are typically eligible for different programs such as down payment assistance, etc.

 

Where will I find the best rates? Broker or Banks / Credit Unions ? People say credit unions give good rates but a broker will shop your file to find the best rate. Be warned that if you choose to go this route, you will be charged a broker fee when it is time to close.

What amount of loan could I get with my income? And how much % do you have to put down most of the time ? Depends on the amount of debt you carry. DTI determines how much of a loan you can qualify for. DTI limits can be as low as 41% to 56.99% depending on the loan program and the lender's overlays and/or FHA/VA/Fannie Mae/Freddie Mac guidelines. You can put as little down as 0% if you have a USDA or VA loan, 3% with a conventional loan, and 3.5% down with an FHA loan.

 

 


 

Message 2 of 10
pat0812
Regular Contributor

Re: Do I qualify for a morgage ?


@Anonymous wrote:

@pat0812 wrote:

I'm thinking abour making my first home purchase this year

I'm self employed with an annual income of $130,000 this last year.

I have been working on my credit for 4 years now and all my FICO scores are between 745 and 759

I have 80K in available CL on all my cards with UTI of 6%

No baddies

I got 1-2 inquiries in last year on all of CB

The only negative thing I have is that my credit age is low. My oldest account is 4 years old and my average age is 2 years and 2 months

 

I wanted to know if you guys think I would qualify for a mortgage. Can't say as you didn't mention the home price or any other debts you may have

What's the difference between first time buyers or others ? First time buyers are typically eligible for different programs such as down payment assistance, etc.

 

Where will I find the best rates? Broker or Banks / Credit Unions ? People say credit unions give good rates but a broker will shop your file to find the best rate. Be warned that if you choose to go this route, you will be charged a broker fee when it is time to close.

What amount of loan could I get with my income? And how much % do you have to put down most of the time ? Depends on the amount of debt you carry. DTI determines how much of a loan you can qualify for. DTI limits can be as low as 41% to 56.99% depending on the loan program and the lender's overlays and/or FHA/VA/Fannie Mae/Freddie Mac guidelines. You can put as little down as 0% if you have a USDA or VA loan, 3% with a conventional loan, and 3.5% down with an FHA loan.

 

 


 


Thanks for the reply

I want to get around 300k loan

Can you explain me the differences between all different loans, I am confused.

 

USDA / VA / FHA / FANNIE MAE / FREDDIE MAC

 

 

FICO 8's EX 770 EQ 751 TU 771 (1/16/17)
Amex Gold Premier rewards ( Charge Card)
Amex Blue cash - $47,800 Wells Fargo - $15,000 Citibank Simplicity - $13,800 Barclays Apple - $13,000 Walmart Mastercard - $8000 Chase Slate - $7,200 Discover It - $5,500 Capital One - $5,250
Message 3 of 10
Anonymous
Not applicable

Re: Do I qualify for a morgage ?

Keep in mind when self employed they will average your last 2 years income. If the most recent year shows a drop from the previous year I believe they will use the lower of the two numbers instead of the average.

Message 4 of 10
Anonymous
Not applicable

Re: Do I qualify for a morgage ?


@pat0812 wrote:

@Anonymous wrote:

@pat0812 wrote:

I'm thinking abour making my first home purchase this year

I'm self employed with an annual income of $130,000 this last year.

I have been working on my credit for 4 years now and all my FICO scores are between 745 and 759

I have 80K in available CL on all my cards with UTI of 6%

No baddies

I got 1-2 inquiries in last year on all of CB

The only negative thing I have is that my credit age is low. My oldest account is 4 years old and my average age is 2 years and 2 months

 

I wanted to know if you guys think I would qualify for a mortgage. Can't say as you didn't mention the home price or any other debts you may have

What's the difference between first time buyers or others ? First time buyers are typically eligible for different programs such as down payment assistance, etc.

 

Where will I find the best rates? Broker or Banks / Credit Unions ? People say credit unions give good rates but a broker will shop your file to find the best rate. Be warned that if you choose to go this route, you will be charged a broker fee when it is time to close.

What amount of loan could I get with my income? And how much % do you have to put down most of the time ? Depends on the amount of debt you carry. DTI determines how much of a loan you can qualify for. DTI limits can be as low as 41% to 56.99% depending on the loan program and the lender's overlays and/or FHA/VA/Fannie Mae/Freddie Mac guidelines. You can put as little down as 0% if you have a USDA or VA loan, 3% with a conventional loan, and 3.5% down with an FHA loan.

 

 


 


Thanks for the reply

I want to get around 300k loan

Can you explain me the differences between all different loans, I am confused.

 

USDA / VA / FHA / FANNIE MAE / FREDDIE MAC

 

 


VA Loan - Loan for military veterans that include a $0 down payment, lower interest rates, and typically lower closing costs. This loan is guaranteed by the U.S. Department of Veterans Affairs

 

USDA Loan - USDA loans are mortgages backed the U.S. Department of Agriculture as part of its USDA Rural Development Guaranteed Housing Loan program. USDA loans are available to home buyers with an income that is capped at a certain figure based on area median income, offer 100% financing with reduced mortgage insurance premiums, and feature below-market mortgage rates. You must live in a USDA-approved zip code, which is typically further out from major cities.

 

FHA Loan - An FHA loan is a mortgage insured by the Federal Housing Administration. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan. FHA loans are popular with mortgage borrowers because of lower down payment requirements and less stringent lending standards such as lower credit scores and higher DTI's.

 

Conventional Loan -  Conventional loans are also called conforming mortgages, because they conform to guidelines established by Fannie Mae and Freddie Mac. These two government-sponsored enterprises buy mortgages from lenders and sell them to investors. Because of this, these loans are usually harder to obtain and have higher lending standards than the other types of loans such as higher credit scores, lower DTI's, etc.

 

Fannie Mae and Freddie Mac - Fannie Mae and Freddie Mac are colloquialisms that are used to describe the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. These government-sponsored enterprises buy mortgages and sell them to investors as mortgage-backed securities on the open market.

Message 5 of 10
Anonymous
Not applicable

Re: Do I qualify for a morgage ?

When it comes to self-employed income, we will typically average the net over the past two years. What was your net income the last couple of years after all of your write-offs?

 

Unless you are a veteran, the lowest down payment will typically be 3-3.5%.

Message 6 of 10
pat0812
Regular Contributor

Re: Do I qualify for a morgage ?


@Anonymous wrote:

When it comes to self-employed income, we will typically average the net over the past two years. What was your net income the last couple of years after all of your write-offs?

 

Unless you are a veteran, the lowest down payment will typically be 3-3.5%.


If my net income was about $105,000 in last 2 years and my FICO scores look very good, what loan amount could I get ?

 

FICO 8's EX 770 EQ 751 TU 771 (1/16/17)
Amex Gold Premier rewards ( Charge Card)
Amex Blue cash - $47,800 Wells Fargo - $15,000 Citibank Simplicity - $13,800 Barclays Apple - $13,000 Walmart Mastercard - $8000 Chase Slate - $7,200 Discover It - $5,500 Capital One - $5,250
Message 7 of 10
Anonymous
Not applicable

Re: Do I qualify for a morgage ?


@pat0812 wrote:

@Anonymous wrote:

When it comes to self-employed income, we will typically average the net over the past two years. What was your net income the last couple of years after all of your write-offs?

 

Unless you are a veteran, the lowest down payment will typically be 3-3.5%.


If my net income was about $105,000 in last 2 years and my FICO scores look very good, what loan amount could I get ?

 


Was last year's income higher than the previous year?

Message 8 of 10
Anonymous
Not applicable

Re: Do I qualify for a morgage ?


@pat0812 wrote:

@Anonymous wrote:

When it comes to self-employed income, we will typically average the net over the past two years. What was your net income the last couple of years after all of your write-offs?

 

Unless you are a veteran, the lowest down payment will typically be 3-3.5%.


If my net income was about $105,000 in last 2 years and my FICO scores look very good, what loan amount could I get ?

 


What are all of your current monthly debts? Loan payments, minimum credit card payments, any child support, etc.

Message 9 of 10
pat0812
Regular Contributor

Re: Do I qualify for a morgage ?


@Anonymous wrote:

@pat0812 wrote:

@Anonymous wrote:

When it comes to self-employed income, we will typically average the net over the past two years. What was your net income the last couple of years after all of your write-offs?

 

Unless you are a veteran, the lowest down payment will typically be 3-3.5%.


If my net income was about $105,000 in last 2 years and my FICO scores look very good, what loan amount could I get ?

 


What are all of your current monthly debts? Loan payments, minimum credit card payments, any child support, etc.


My monthly loan payments are $900 (car loan) and my minimum credit card payments are around $100 ( I don't owe a lot on my cards)

No Child support.

 

My income this last year was a bit higher than the previous year

 

FICO 8's EX 770 EQ 751 TU 771 (1/16/17)
Amex Gold Premier rewards ( Charge Card)
Amex Blue cash - $47,800 Wells Fargo - $15,000 Citibank Simplicity - $13,800 Barclays Apple - $13,000 Walmart Mastercard - $8000 Chase Slate - $7,200 Discover It - $5,500 Capital One - $5,250
Message 10 of 10
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