I think the biggest challange is going to be the front end debt to income ratio, which based on your income, would only be about $671 per month (total of your mortgage payment/insurance/PMI) based on a 31% ratio. Back end ratio would be $931 based on 43% ratio.
On a $130,000 house, your monthly payment for the house would be $1,000 - $1,100 based on 3.375% interest rate. I think you both need to be on it to make it work. Are you sure his credit is that bad where he can't also qualify? I thought mine was bad and I couldn't, but it ended up being ok and my middle score was above 640.
Thanks. His credit is 550s unfortunately so we have a ways to go with that.
I just checked my last check stub and I'm at $27,500 alone. I'm not sure if I should just give up the idea until his credit is improved or go for a lower priced home.
I could try to get a second job. If I did, would they require me to be working there for 2 years before considering that income as stable?
Why not kick him over to the rebuilding thread and see if we can do something about getting those scores up?
I got my hubbies credit from mid to low 500's to 700's in less than 6 months. It can happen. I would pull his reports and put his stuff minus the personal info. We will help!