Here is a little info.
Husbands credit score -690
Mine - 700.
Home Price - 153,000
Annual Income - 46,332 (This is BASE pay only) We really make about 72000.
Debts - students loans totaling to 19,200. In deferment until November of 2016. Estimated monthly payment that they gave the lender was $95 a month.
We have 2 credit cards with low balances. Only one has a monthly payment which is $25.
No car payments or any other monthly debts.
My husband had one account go into collections 3 years ago (for $2100). We paid it off entirely and provided proof of payment to the lender (still reports the balance on our credit report.)
We are building a new home. 1500 square feet in a great neighborhood. This is our first home. We have been married or 2 1/2 years and have a one year old son.
At first, our lender recommended that we go with the USDA loan, even though we had a lot of money in savings and plenty for a down payment. We agreed with this because we thought it would be great to be able to keep our savings.
When we first got sent to underwriting, about 2 months ago, the USDA loan was denied because we made too much. We were shocked. Denied, when we only make 46000 a year? They calculated all of our bonuses and childcare reimbursements, which made our totaly annual income total to 75000.
Even though we were shocked, we did not mind going with a conventional loan. Now, we are going to put 7700 down on the home and pay about 4000 in closing cost. Totalling to 11700 at closing. We have a total of 26000 in savings (all of the money is ours, no gifts... we put all of our bonuses aside). The lender said our profile looked great, and as long as nothing with our financial picture changed, we will be able to close.
Since then, my student loan balances went from 14000 to 19000. I had to submit a LOE to the underwriter explaining why. I am a full time student, so it's not like I went out and applied for a credit card or anything. and the payments are defered. I am hoping this will not be a huge problem. Our loan officer says many people have students loans and for me not to worry. Also, the underwriter never seemed concerned with the account that went into collections a few years ago.
Anyway, I am nervous. I am scared of a last minute denial. What if my students loans pose a problem?
Our DTI looks fine, right?
Base monthly income is $3861.
Our monthly payment will be $1010 a month (taxes, PMI, everything included).
Credit card payment is $25 monthly.
Students loan payments, if they include the payment, would be $95 monthly.
26000 in savings, 14,300 left over after closing.
