This is my scenario, I am wanting to build a new home. I have a current mortgage with a balance of about 170K my home is worth 220K. All of my mortgage FICO scores are low to mid 700’s. I was recently divorced and was given the house without having to give any of the equity to my ex-spouse, but I have to refinance the current mortgage out of her name by April 1st 2018.
My income is 43,000 a year - 30,000 is w-2 income and 7,000 is child support income and 6,000 for a room I rent out in my home. My current position in my company is a 9 month position “Work for a School” starting this year I am receiving a raise of 25% which is 7,500 for converting from a 9 month to 12 month position. This raise isn’t going to take place until June of 2018. After that I will have an income of 50,500 - 37,500 w-2 income and 7,000 child support and 6,000 for rental of room in my current home.
I want someone with experience to give me options of what I can do. I believe I'm eligible for any of the FHA and USDA loan options.
Wish List: I want to be able to continue to live in my current home until my new home is complete.
I would also like to keep my current home as a rental property if possible. House rental appraisal is 1,650 monthly. 4BD 2BTH home with a very desirable location.
Key items:
- Construction cost including land will be roughly 250K
- Current Cash reserves 15,000
- I have to refinance current mortgage by April 1st 2018
- Current DTI is 45% with current Mortgage and 14% without mortgage added in.
- Currently have about 40K to 50K in equity in my current home
- Have two different incomes that are non w-2 incomes
- Current credit profile 25% utilization 25,000 available in CC’s using 6,250 total payments = 125.00
- Current vehicle payment is 371.00 a month
- Current mortgage with Insurance and taxes – 1,100 a month “conventional mortgage”
- 10 Years of age on credit
- No late pays ever, no charge offs, no negative what so ever.
