@hilarybanks wrote:
@Rocd wrote:
@StartingOver10 wrote:PM Dallas on the private student loan situation right away. That way if your soon to be wife has to get those student loans out of default, she can do that during this year while the two of you are saving up the funds to buy for next year. She ought to strongly consider that anyway as I understand it, student loans continue to accrue interest until they are paid. I also understand that they can't be bk'ed except in extremely rare instances.
The private student loans are past the default point and have been with a collections company since 2012. Balance is the same since 2012 as well. In my case money for the down payment is not the problem. Just how the non-purchasing spouse problem. I'm thinking about divorcing her around 3 months before the purchase and re-marrying her after.
I'm hoping that this part was a joke...? It would cause you a whole host of problems to get divorced, then re-married, like medical insurance issues, court order, court fees, the emotional toil of a divorce (especially over money) etc. Some private lenders have rehab programs. She should check. $50K is a lot, but it's not impossible to pay them down.
Anyway, a married couple in my family successfully purchased a house in 2011 in Texas with only the husband on the loan. The wife had unpaid bills (medical and credit card) that they didn't want factored into their DTI. His credit and income were good, and he put down $40K on a $200K home (wanted equity in the home).
I wish I knew more details about their arrangement. The wife ended up not being very happy about not being on the mortgage, so that's something to think about.
Tnx for the reply.
The part about divorce was a "workaround" to get a FHA mortgage. I told her that this is a last resort and she understood. There are no rehab programs for her lenders already checked. Did that couple do FHA? Sounds like the did a regular bank loan. All my research shows that in TX her debt would be looked at for DTI if it was FHA loan.
Starting Score: 1/9/13 579EQ 550EX 560TU
@StartingOver10 wrote:Consider conventional financing then. You only need to put down 5%, but you will need reserves which can be satisfied with a 401k if you have it.
You have a year to get your score up which you can do if you go to the rebuilding section here.
I have 5% and reservers 401k also. I think you are right about my best option is waiting it out till my scores rebond. I would have hit the 700s this year if it wasn't for that random 300$ collection showing up from 2009. I just hate limiting my options since FHA seemed so easy and quick.
@StartingOver10 wrote:Actually conventional is quicker and easier.
If you can PFD that collection you should be able to rebound. The best thing also about conventional is the MI drops off after your LTV reaches 78% automatically and FHA MI is for the life of the loan for a 30 year loan.
Also your wife's debt won't be included. She needs to figure out what to do anyway with her debt but that is a separate issue from the house purchase.
Yea I have a year to figure something out. As far as her loan problem. I was hoping they would get a judgment against her and then settle the judgment for half. The CA won't negotiatite. The acctual amount is 37k the 55k is with fees and costs...What type of scores are need for a conventional mortgage. I'm at 645 right now. down from 670 in Jan 2014.
@StartingOver10 wrote:You can get a conventional with your score now but the MI will be high. It will be as high as if you are a FHA borrower.
The higher your score, the lower the cost of MI in conventional. If you get over 720 then you get a very low MI amount.
Your wife doesn't want a judgement on her Student Loans. They are worse than the CA's. There are added costs plus statutory interest plus a judgment usually last 20 years or 10 years plus 10 yr renewal depending upon which state you are located in.
I will keep what you said in mind about the judgments. I'm paying around 1035 in rent right now with that set to go to 1120 if I don't leave CO. I know that I can get a home for 700 or so in TX. This is very attractive even with PMI and high interest rates. I am hoping that when the court date comes they lawyers will offer her a reducded amount to settle on payments or the judge will call the extra 15k in fees unreasonable.It gets worse. Did I mention she has 28k in federal loan and she never finished college... just started the federal rehabs thou.
