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My husband & I are really hoping to finance a single-family home by December 2013 [Conventional would be ideal, but FHA is likely our only option]. It is important for us to know now if we will likely qualify or likely not qualify for a mortgage by then, so we can plan accordingly with our rental situation. I have already scoured these forums, read as much information online as possible, and we have talked to different professionals in the business...unfortunately, we are getting vastly different answers. I was hoping to get a few more answers here.
Here's our situation:
Applicant 1:
Employed teacher for 3.5 years at same school; Starting new job in June at same position at a different school in a new location
EQ Fico score at 726; others currently unknown [not forseeing a problem here-no baddies]
Applicant 2:
Recent graduate, beginning job in field in May
EQ 582 TU 714 EX 680 [Long story here, but we're paying off a charged off private student loan for $5,000, a CC for $1000, writing GW letters for two 30 day lates in 2010, and consolidating his student loans. EQ credit report has a 120 day late on an auto loan he cosigned that EX & TU do not have on file...we're trying to get it removed since he tried to pay, but the financing agency wouldn't let him since the other individual filed bankruptcy. The loan has already been paid off.]
Combined gross income: $140,000
Monthly debt payments: $2430 (Thank you, pharmacy school.)
We know we will stay below the FHA limit for our location ($279K), but we don't see ourselves finding what we want below $200K. Most of our conflicting answers surround our employment...is two years necessary since he's a recent grad? Is my job switch a problem? We're also worried his EQ FICO won't go up to at least 620 in 7 months, no matter what we do. We will have $20,000 by December 2013 for a down payment and closing costs.
Most lenders' solution is for me to finance a house by myself, but they don't seem to understand that although my credit score is better, I'm only pulling in a little more than 33% of our income.
Thanks in advance.
I imagine the huge difference in the scores is because two of the CRA's do not even have record of the auto loan that has the 120+ late. The 120+ was reported 8/2012. I don't really want to rely on 680 as a decent mid-score because I figure they will figure out the EQ has a low score for a reason. He's really working hard to improve it, but I don't see it reaching 640 without some goodwill...and a couple of lenders have suggested we need to at least be there for FHA.