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Hello. Andre in need of advise

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Anonymous
Not applicable

Hello. Andre in need of advise

I got to this country about 3 years ago i started out with a $500 bank of america secured card so i could start building up my credit,i have a 3k credit line now never been late on any payment. what would best ( way and order )to obtain a newer car and a home. my credit score its about 698. i live in CT my income it's about 30k a year. Its. FHA any good?  thanks for your time..

Message 1 of 4
3 REPLIES 3
jbh
Established Contributor

Re: Hello. Andre in need of advise

Hi Andrea,

 

First, you might get better responses from the loan forum, as there are many people who are familiar with FHA/mortgages and you'd receive faster responses. (I'll bump the thread to help you)

Second, FHA might be a great option for you. I assume there are no bad marks on your report within the last year, correct? Also, a lot of this is based on whether or not you would offer a fair down payment or not (20%).

 

 

Message 2 of 4
DallasLoanGuy
Super Contributor

Re: Hello. Andre in need of advise

fha is the best choice for high ltv(loan to value) financing. in other words: if you dont have a lot to put down, fha is great. 

with down payment, conventional may be best option. make sure your lender discusses both with you.

 

Retired Lender
Message 3 of 4
Anonymous
Not applicable

Re: Hello. Andre in need of advise

I think there are more questions to be asked before you get a great answer.  What price range on the house and the car loan?  I'm guessing the biggest point to consider would be your debt to income ratio. 

 

If you buy the car first and take out a loan for it, your buying power will be reduced.  When they go to approve you for a mortgage they add up your monthly debts and compare to your income to get the ratio.  Say monthly you have a $200 car payment and bring in $2500 and you want to add a house payment of $800.  That leaves 32% for the mortgage DTI and 40% for the total DTI.  You would also have to add any student loans or credit card payments, etc.  You can see that if you instead add a $300 car payment it goes to 32% for mortgage and 44% overall. 

 

One of the benefits to FHA is you don't need a big down payment.  Currently you need 3% and in January it will switch to 3.5% down payment.  If you can put down a bigger down payment conventional could be a better deal.

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