@Anonymous wrote:
After lurking and learning for a while, I managed to pay down our cards this year and bring up our scores. Inow realize that I just really didnt seem to have an understanding of how it all comes together. Although I feel like we have some victories in the CC arena, I now feel like I may have inadvertently delayed our homebuying endeavor. That said, I reached out to a loan officer at my local bank branch recently.
I was advised that we could possibly qualify for the Florida Bond program as first time homebuyers with a median score of 640 and that our DTI would have to be no more than 45%(mortgage payment included) to qualify. I haven't purchased current scores yet because we just refinanced our car loan and the original loan reported closed the other day while the refi has not reported yet = no installment accounts.
I had always thought we were at least 2 years away and so I, what seems reckless now, applied for all the CCs on our Must-have list over the past two months. So we have all this new credit, all these inquiries but were actually in a position to qualify for a loan.
My concerns going forward now are:
- Will 6 months be sufficient for the aging of the new accounts and inquiries?
- I am now in school full-time and so DW will be applying on her own, however her income goes toward repaying my debt.
- I only have a balance on one card which I just BT'd and so I plan to pay down $100/month
- 2 student loans deferred until 2017 but I make a monthly $25 payment on the unsubsidized one
- Total DTI including my 2 accounts is 18% - we exclusively use CC for daily living then PIF bi-weekly.
- DTI includes car payment of $350
Here's what I know about DW
- No lates
- 1 open collection on TU. Thorn in our side - was timeshare for DW and ex. He chose to keep it and was awarded it by the court. DW filed quitclaim deed and that should've been it. Except, he never paid on it, then filed BK and so CA comes after DW. We actually didn't know it had be on her report since '09. Upon filing a dispute, the CA maintains it's a legimate debt even with all the court and public records documentation so they re-opened it in December and tacked on 200% interest.
- Income: $51k
- CC utilization 1%
I'd be so grateful for any insight and advice on how to proceed. Thank you all for taking the time to read this post.
Florida is not a community property state so you are good there. There are only 9 community property states and they are all in the western US
You really don't have to wait 6 months even with the new credit. Most people advise to wait if it looks like you are running up debt. If you got the credit to enhance your utilization and haven't run up debt, that is a good thing.
Do you have any savings or are you planning to get all of your down payment from the bond program?
The PSA (Property Settlement Agreement) that shows the property was awared to the ex should be sufficient to show it was not the responsibility of the spouse. Problem is this: ex filed Bk and the CA does have the right to go after your DW for payment as the CA/OC is not a party to the divorce. KWIM? Her remedy is to go after the ex, but he has a Bk in place. If the Bk is discharged he isn't responsible. If it was dismissed, he is and she can collect from her ex (if he has the resources).
Suggestion: check to see if there is a judgment. If there is one, settle with the CA and get a Satisfaction before you go down this road to buying your first home. The mortgage inq will bring out all the creditors even if the CRTP has passed. Be prepared.
Did your wife sign for the student loans too? If so apply sooner rather than later.
From your post, it looks good. Make sure to check insurance because our insurance is high here and it makes a huge difference in what you can buy mortgage wise. Look up Wind Mitigation factors so you are well informed before you ever make an offer on a property. Can be the difference of a couple of hundred a month in payments.
