Relocating to the DMV and due to job would prefer to be in the metro. DH is self-employed and I'll be staying within my field. We are selling a home and will likely have a down payment of approximately 60-90K depending on the home sales price and the cost of relocating as well as debt payoff. We are looking at homes up to around $700K. Income around $235K combined.
My real concern is, DH is self-employed and has been for 5 years in January. Income has fluctuated wildly with last year being PARTICULARLY horrid and resulting in FOUR reported lates (of which I was unaware -_-). This has been remedied. We have now included ALL liabilities including those from the business on our budget. Everything has been paid. Two were oversights and two he legitimately thought there was no money to pay (lack of communication).
I'm working on a good faith deletion for ONE, but one was a collection from our CPA that he thought he had paid. I told him to negotiate a pay for delete, and he didn't listen and just paid them. Now we are stuck with it.
Is there anyway to get approved with these so recent? This year has been better and his middle score will be around 690, while mine will be around 720, but his income is way higher. We are looking for a Freddie Mac conventional, which we did before, but his credit was WAY better. This time, I'm not sure if we will qualify and I don't know where else to go with my student loan debt ($139K) and my IBR payments.
ETA: Depending on down payment needed, we may pay off an auto loan and two cards. Our current debt loads are close to 30%. They would be down to <10% by application, hence the range in available down payments. I know that this would bring our credit scores up. Score simulator puts my middle at 778 and his at 709.
2nd Edit: Our backend ratio right now is 49%. This includes our current morgage, right now. Front end, is 35%. After payoffs, we would be under 36% on the back end. PLUS my income is increasing ~ $30K from $68 to $97K. Our current debts include about 38K on credit cards ($108K limits), 2 car notes $459/$453 (the $459 will be paid off May '17 but we can pay off earlier if it would help). And the student loans with the payments mentioned above. We also have a very small balance on a HELOC (~$7K) that would be paid of when we sell the house, from installing a new HVAC last fall. Lastly, our home has appraised (HELOC) for $380K and we owe $287K. I don't know what else I could be missing.
Please advise and feel free to ask questions.
