Mortage approval issues?

Anonymous · ‎02-16-2017

My husband and I are seriously considereing applying for a mortgage. It will be our 1st and we are both teachers. Can someone check out our info and tell me our odds and any red flags that might come up.

1. Mortgage Credit Scores:

What are your fico MORTGAGE credit scores for each mortgage applicant? 680 & 675

2. Credit Negatives: If you have any, what negatives are on your credit reports. For each negative, please provide: We have about 80k in student loans, but no other debts owed to anyone. 70k is in deferrment bc I'm in Grad school, the other 10k is being paid back at 180/mo.

3. Gross Income. 95k/yr base pay; will rise to 100k in August 2017

4. Source of income. Where is the income coming from? Both teachers, fulltime employment for 10 and 6 years, annual contracts

5. Monthly debt payments. Student Loans: 70k in deferement until june 2018, 10k being paid back right now at 180/mo; child support is 450/mo, credit card limit is $300 and we pay it off every month.

6. Employment (for those who are employed). Both teachers, fulltime employment for 10 and 6 years, annual contracts

7. Assets/Reserves. This is to determine how much you could potentially have as a down payment and also as reserves to help qualify (for example if your debt to income ratio is high this could help qualify you anyway) 401k has 35k, we really want to take advantage of the grant money for downpayment assistance.

8. Location: This is to determine govt guaranteed loan limits, what special programs might be available for you, how much property taxes & homeowners insurance will likely be, amongst other items. Las Vegas, NV

9. Property Description: Single Family House

10. Property Value. We think we can find something that we like for $250,000

11. Occupancy. Primary, 2 adults, 3 kids

12. Transaction Type. 1st home purchase

Any help or guidance is greatly appreciated!!!

Sbrooks1 · ‎02-16-2017

Depending on he type loan you want , I worry most about your student loan debt. So you have no other monthly bills ? No car payment, furniture etc.. anything?

Anonymous · ‎02-17-2017

Nope. Both cars paid off. No payment plans on anything else. We only have one low limit credit card.

Anonymous · ‎02-17-2017

I think you guys are fine. Worst case scenario, they calculate your student loan payments using 1% of your balance. That results in roughly $980 a month. With no bills other than child support, you guys should be fine as far as DTI is concerned.

What type of mortgage are you considering? FHA?

Anonymous · ‎02-17-2017

Definitely trying to do FHA and get the 3.5% financing for teachers.

Anonymous · ‎02-18-2017

One of the more experienced members can chime in, but I think you guys should apply with confidence. Even using the generic 28/43 DTI standards, you guys are fine... And FHA oftentimes will let you go above that. At 95k a year, thT breaks down to around $7900 a month. If you take 28% of that as your housing allowance for PITi, that comes out to around $2200. With FHA, depending on property taxes in your area, that's puts your payment around $1700.Thats well below 28%.

Dor your other debts, you're allotted $1187. With child support of $450 and a worst case student loan payment of $950, you guys are just a bit Bice that. When you add the housing payment ($1700) and the rest together ($1400), you have a combined DTI back end ratio of 39%. That's well below the 43%...and FHA, as I stated, will oftentimes let borrowers go up to 56.99%. You guys should be just fine.

The other thing to consider is down-payment. If the down-payment program doesn't come through, you have more than enough to pull the funds needed from your 401k via loan or withdrawal. You'd need to consider the consequences of doing such.

cmony787 · ‎02-18-2017

I'd look into NACA mortgage as well. Given the amount you want to spend, this could be a really good option for thier 15 yr wealth builder program.