Hello Everyone,
Let me start this off by 1st saying thank you for all the amazing advice, sharing, and knowledge that is shared here. The information I've been able to use in learning about how to manage credit brought us back from the debts of bankruptcy 10 years ago to mid-upper 600's scores.
That being said I wanted to participate in the community despite being more of an introvert and also put myself out there to get some feedback on what our profile looks relative to USDA or FHA Loans and if this is something my wife and I should/could reasonably pursue.
1. Mortgage Scores
Myself
EQ: 670
EX: 646
TU: 667
AAOA: 2yrs 7months
Wife
EQ: 678
EX: 655
TU: 681
AAOA: 8yrs 3months
2. Negatives
Wife
BK CH.7 - Discharged 3/28/2007
Collection/Paid ($249.00) - DOFD 8/2010 (Was Dish Network, we moved to another state and thought we had our final bill paid, we paid collection immediately, wouldnt PFD)
Myself
Collection/Unpaid ($1,201.00) - DOFD 11/2009 (Medical from a Chiropractor whom was a friend that was billing me $0 on copays as a "discount" but taking the insurance payment. When his franchise found out after moving out of state they sent me a bill. I've tried to validate it but it would take an attorney to make it go away).
No Lates
3. Gross Income
Wife
$43,100yr
Myself
$21060yr - I have been self employed the last 5 years. The company is an LLC and I have been taking draws this year vs. reimbursing my expenses (home office rent, phone, internet, water, electricity, gas, etc) as I have in the past I'm able to write off. The draw average since January is $1755.00 per month.
4. Source of Income
Wife
$42,500yr - Salary (503c Non Profit Management Position)
$600yr - Cell Phone Allowance (Added on her biweekly check and on the stubs)
$288mo - Mileage reimbursement average for the last 10 months. (Not sure if this is even something they can use, it covers her car payment, gas, and insurance).
Myself
Self Employed Owner of and LLC. The years prior and up until now I havent written myself a check. I would reimburse my expenses and at best a maybe had a $1000k in an actual draw on paper. As a Freelance web developer and marketer making a comfortable salary able to pick my kids up from school, plus having the tax advantages, I'm not sure if I'm making the right move by taking draws to position us for a mortgage. (Feedback welcome)
5. Monthly Debts
Wife
$0 IBR Repayment Plan - $118K - Student Loan Debt - 4 years of PSLF (Public Service Loan Forgiveness) 6 years remaining.
$164.00 - Barclay - $5350 Balance - 22.9% (This card stinks)
$25.00 - Discover - $1460 Balance - 10.9% (Just Balance Transferred to this for the 10.9%)
$25.00 - Amazon - $800 Balance - 0% Mar 17
$25.00 - BestBuy - $600.00 - 0% Feb 17
$54.00 - Cap1 Spark Business - $1695.00 (Wife is 30% owner of LLC this is her card)
Utilization 49.5% respective to limits
Myself
$185.00 - WellsFargo - $2730.00 Balance - 0% until final payment in Aug 17
$23.00 - BestBuy - $750.00 Balance - 0% Mar 17
$27.00 - Barclay - $1000.00 Balance - 0% Sept 17
S25.00 - Citibank - $1300.00 (Just Balance Tranferred to this 0% Aug 17)
$72.00 - Cap1 Spark Business - $2225.00 (Business Card)
Utilization 38.2% respective to limits
Combined
$689.77 - Bank West - New Autoloan - Just purchased and made first payment last month
$284.62 - SunTrust - Autoloan - Wifes Car
Total CC Balances $13990.00 | Avail Credit - $33500.00 Paying off at a rate of $1K+ per month.
6. Employment
Wife
W2 - Salaried | Also owns 30% of my llc
In this position with this company almost 1 year.
Career Field 4 years.
Continious Employment 6 years
Myself
K1 - 4 years of Tax Returns
In career field for 10 years
7. Assets Reserves
Wife
403b - $650.00 (Injection of $3400 on July2nd by company)
Myself
$0
Combined
$1995 in savings - We really have been focusing on paying down all the CC Debt making $200-$300 a month payments on each line to get them down.
8. Location
State: Wisconsin
County: Brown
Zips: Unsure
9. Property Description
Looking for a single family home, good condition, 3-4 bedroom, 1600sqft.
10. Home Price Range
Realistically the sweet spot in this geographic area is anywhere from $165 - $200k
11. Occupancy
Primary Residence
12. Transaction Type
Purchase
Closing -
From what I have right now our Back End Ratio is at 46% using $1100 as a guide for a house payment adding in my wifes mileage to the income. Front end I'm at 19.4% with the same numbers. The student loans concern me because there really isnt anything clear on how they will impact us being she is in PSLF and in IBR, or changes in June related to calculating the debt. Additionally my self employment draws (vs reimbursing my expenses) factoring in I'm not sure will help/hurt us.
Last year we approached this with a mortgage broker when my wife was offered a new position and we relocated from FL to WI. From his viewpoint then the student loans could become an issue and the way I was losing money on paper wasnt helping us at all. He could have approved us but it would have been for a $40k loan at best. It seems in our scenario we are in a perfect corner, just thought I would come on here and get a temperature for a hail mary pass.
Thank you again all, I appreciate your feedback and I look forward to contributing.
