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Valued Member
ALD22
Posts: 34
Registered: ‎10-02-2012

Hypothetical Situation- Please humor me :)

This is where I hope to be someday. I just wanted to see if my goal is realistic. Would I be able to buy a home with the following criteria?

 

Credit. Mid score 650.

         4/12- Student loan 180+ late (x8 separate loans) paid on time since

 

Income:

         50K

 

Source of income. Where is the income coming from

         Employment

 

Monthly debt payments.

        Student loans-$136

        Car-$570 (could refinance and get a better rate and the payment down)

 

Employment

        This could be tricky. I have been at my current position for 2 months( but don't plan on buying for AT LEAST a year). Before this I took 3 years off to stay at home with my kids. I am in the same industry I’ve been in for 10 years.

Assets/Reserves.

         20K down. 15K in reserves

Location.

         Colorado-North of Denver

Property.

         Single Family, no more than 10 years old

Value.

          Looking in the 180k-200k range

Occupancy.

          Primary

Transaction Type.

          Purchase

Moderator
Shogun
Posts: 10,871
Registered: ‎04-15-2011

Re: Hypothetical Situation- Please humor me :)

2 penguins walk into a bar...   Oh wait, different kind of humor huh?   Are those SL lates  your only baddies?  Income and DTI look OK to me,  credit score is in the OK range but can improve that within a year.   You need to send GWs for those SLs, maybe you can get lucky.  Yes, keep paying on time, check your revolving debt, and garden everything well.  I can see a new home in your future.


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Valued Member
ALD22
Posts: 34
Registered: ‎10-02-2012

Re: Hypothetical Situation- Please humor me :)

LOL! thanks! The student loans aren't my only baddies, but I'm pretty sure I can get the others removed by the time I'm ready to buy. If everything else looks ok this is what I will strive for. It just helps to have something to work towards! 

Established Contributor
sccredit
Posts: 770
Registered: ‎09-14-2012

Re: Hypothetical Situation- Please humor me :)

You could do FHA with that scenario, possibly conventional depending on how the lender looks at the income/employment.

Mortgage $299k/$310k
Autos Loans $49.5k/$60k
Unsecured Lines $157.2k

Discover FICO 732
DCU FICO 718

Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010

Re: Hypothetical Situation- Please humor me :)

Your biggest hurdle in my opinon will be your employment even though you have been in the same field for 10 years, that 3 year unemployed break may throw up some red flags. If at all possible I would probably wait until you have 2 years of steady employment before applying, but you can speak to the lenders and or brokers in your area and get their opinions. Income is okay just a little borderline on the value of home you are seeking. The late payments will age more and should be less of an issue but once again will depend on what type of loan you are seeking and the underwriter. 

 

Good Luck.........

Good Luck
May all your dreams and wishes become a reality!

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