Magic Number?

[chela62678]

I am a few months from applying. Have to get these new inquiries and new cards a little growing room. 

My question is: what is the lowest scored being used for conventional loan? 

I was told 680 but am seeing 640+ go conventional. 

My mid is 712 hubs is 647. Live in Tx so community state.

Our taxable imcome is 65k but we make 100k on w-2 before taxes. 

$1300 auto payments $300 cc payments. A month

What can we possibly afford?

Second go around. 

60k in available credit about 9k in use. 

Have 5% down for sure. need to sell current home may have 10% down

TIA

[MrChairman]

Your DH score is cutting it close. I would try to bump that up as much as possible before applying. Everything else looks solid.

[Anonymous]

Does it being a community state mean that you can't apply as just yourself? that might be one way to get around DH's score. 

[frugalQ]

There are probably some lenders who will go 640 for conventional, but the rate and PMI will be high.

680 (better yet 700) will get, at the very least, a more palpable PMI rate.

Are you able find any 'quick' wins on his report to get his score up?

Are you willing to go FHA?

[tavomartinez]

Yes.. He has to be on loan afaik!

[tavomartinez]

hi frugalq! Congrats on the home btw..

he has medical collections all under $2000. One may come of here soon. 

Never responded to tx dv so sent to cfpb. 

And has one paid collection from enhanced recovery.  No luck on gw even though i paid oc. 

His credit report is tricky. I am having no luck on the low util gain. His score lowers instead of raising when under 10%

[chela62678]

Sorry was in hubby's acct 

[Anonymous]

---

@chela62678 wrote:

I am a few months from applying. Have to get these new inquiries and new cards a little growing room. 

My question is: what is the lowest scored being used for conventional loan? 

I was told 680 but am seeing 640+ go conventional. 

My mid is 712 hubs is 647. Live in Tx so community state.

Our taxable imcome is 65k but we make 100k on w-2 before taxes. 

$1300 auto payments $300 cc payments. A month

What can we possibly afford?

Second go around. 

60k in available credit about 9k in use. 

Have 5% down for sure. need to sell current home may have 10% down

TIA

---

Using your numbers, I think you could get a home of approximately $308k. The Auto payments are the biggest limiting factor. Using your $100k income, you make ~$8300 per month. Front end DTI gives you a payment of $2300, while back end gives $3000. However, you need to remove the auto payments and credit payments from the back end, which leaves you with a payment of $1400 per month. At a 4% interest rate (which I don't know if you qualify for, but you might) that gives a loan of $293k. Applying your 5% down, that brings you to about $308k for the total property price. 

[chela62678]

Thank you $250k is what we are shooting for want new home built. Even less if able. 

Fee months back got 180k as what we could afford.

[Anonymous]

---

@chela62678 wrote:

Thank you $250k is what we are shooting for want new home built. Even less if able. 

Fee months back got 180k as what we could afford.

---

I'm going to add addendums to my prognostication. It does not include property taxes, which you will have to account for. It also doesn't include PMI, which I think will knock $20k off the the loan value.