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Valued Member
jpalacios161
Posts: 31
Registered: ‎03-30-2008

First Time Homebuyers...do we qualify?

My husband is the only one who works and makes $56k. 2 car payments at $1100 and that's it. What is the max we would qualify for? We were told by countrywide and another lender it would be only $85k-$92k because of the 2 vehicles which were bought april 07' and that it is affecting our debt to ratio with the FHA lenders.  Basically we got approved with FHA with Nehemiah but with those prices it's hard to find a decent house for $85k-$92k here in houston texas or one in the area we want. We paid off a judgement in March 08' and everything else is over 4 years old and his credit scores are 583 with transunion, 590 with equifax and 594 with experian. We are looking at houses at $110-$120k but no more for comfort sake.
Regular Contributor
tryingtogetitrightnow
Posts: 201
Registered: ‎01-30-2008

Re: First Time Homebuyers...do we qualify?

From what I've seen, I'd say you need to get one of those cars paid off (or within 10 months of being paid off) before you can qualify for more.

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Regular Contributor
courtney091082
Posts: 244
Registered: ‎07-06-2007

Re: First Time Homebuyers...do we qualify?

I thought 90k seemed low too but after calculating it, it's right on... I am in Texas too, we have high taxes here, that's part of the reason for a lower loan maybe? I am new to this too, we should be going for a loan later this year/first of next year, like the previous post mentioned, try to pay off down to less than 10 mos on one car then it isn't added into DTI and you can loan for more... That's what we are doing right now too! Isn't fun, but you can loan for a nicer home, so worth it. Courtney
9/1/2012 ...DRUMROLL .... EQ .. 776!!

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Frequent Contributor
caliborne
Posts: 263
Registered: ‎03-27-2008

Re: First Time Homebuyers...do we qualify?

You definitely need to pay off one of the cars. Your DTI is high with 1100 in car loans.
FICO 6/2/08 , EX 754, 5/2 TU 720 EQ 722
Valued Member
jpalacios161
Posts: 31
Registered: ‎03-30-2008

Re: First Time Homebuyers...do we qualify?

I guess I forgot to mention they are on leases and won't be up until April 2010
Valued Member
trashyart2000
Posts: 203
Registered: ‎03-18-2008

Re: First Time Homebuyers...do we qualify?

I agree with everyone. Your current DTI with the 2 auto loans is already at 24%. That is HIGH considering that is not including a mortgage. You must pay off one of those to get a higher loan amt.
If you can't do it right the first time, then maybe skydiving isn't your thing

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Valued Member
jpalacios161
Posts: 31
Registered: ‎03-30-2008

Re: First Time Homebuyers...do we qualify?

Okay thanks for the advice...maybe I just need to make more money..haha!
Moderator Emeritus
ByrdMan
Posts: 7,975
Registered: ‎12-19-2007

Re: First Time Homebuyers...do we qualify?

Hi jpalacios. With your current D/I ratio of 24%, you are not left with much wiggle room. If the lender wants you to be at 40% D/I on the back end, that only leaves 16% for your house or $747 per month PITI. Is it possible for you to work outside the home?
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Valued Member
jpalacios161
Posts: 31
Registered: ‎03-30-2008

Re: First Time Homebuyers...do we qualify?

We actually can afford more for a home seeing as we only pay vehicles. Take home is actually $4500 because of bonuses he receives monthly and commissions so we know with $1100 with vehicles and a house note at $1000 or so we could do it but because of the ratios lender says no. On another note though or lender just called to say we can't get a house at all until my husband's score gets to a 600. New FHA law goes into affect tomorrow so as of tomorrow our approval is no good.
Valued Member
jpalacios161
Posts: 31
Registered: ‎03-30-2008

Re: First Time Homebuyers...do we qualify?

What would be ideal gross income for a $120k house? What if I use a down payment assistance program? Will this help me qualify for more house? Husband is working on raising his scores so don't know how that helps. Honestly in Houston Texas in the area we are looking at their is nothing work looking at if it's under $100k and if there are some they already have contracts on them. Even if I were to work now how would the lender know how much to account for?

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