Mortgage question

[Anonymous]

To anyone who could help, Looking to purchase a home our credit is looking better,wondering how much we could possibly get a mortgage for. My husband will have a medical disabilty pension of about 3,666 a month tax free and I make about 34,000 a year our only debts will be a car payment of about $400 and credit card debt will be $60 monthly. We would love to purchase a particular home that is listed for 289,000.  That is higher than we were thinking of but we LOVE this house.Do you think we could be financed this much w/ fha? And also my husband will eventually have more income coming in,he can get another job,he is just not able to physically do what he does now, so I know we will eventually have more income, I just dont want to depend on it to obtain a mortgage.

[Anonymous]

Just based on qualifying ratios, a $289k house would probably put you just less than 40% so I would think you would be ok.  That would even be without grossing up your husbands pension which they would since it is not taxed.  You will have to fully document the pension and it's permanence.

All that is assuming your credit is fine and your income has been stable.  For FHA you need 3% down (if no gift) and closing costs if the seller is not going to contribute to them.

[Anonymous]

Isn't the normal ratio 28 to 30 percent for mortgage only.

[ShanetheMortgageMan]

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bdbhg5 wrote:

To anyone who could help, Looking to purchase a home our credit is looking better,wondering how much we could possibly get a mortgage for. My husband will have a medical disabilty pension of about 3,666 a month tax free and I make about 34,000 a year our only debts will be a car payment of about $400 and credit card debt will be $60 monthly. We would love to purchase a particular home that is listed for 289,000.  That is higher than we were thinking of but we LOVE this house.Do you think we could be financed this much w/ fha? And also my husband will eventually have more income coming in,he can get another job,he is just not able to physically do what he does now, so I know we will eventually have more income, I just dont want to depend on it to obtain a mortgage.

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Your debt ratio would be fine for FHA right now.  However does your county's FHA loan limits accommodate the loan amount you are looking to finance?  What county/state are you buying in?  You can check FHA loan limits at https://entp.hud.gov/idapp/html/hicostlook.cfm.

What is your credit like?  Perhaps FHA isn't needed and you could qualify for conventional financing.

[ShanetheMortgageMan]

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zman wrote:

Isn't the normal ratio 28 to 30 percent for mortgage only.

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For a manual underwrite yes... but for automated underwriting I've seen up to high 40's for the "housing ratio" qualify.  The OP's housing ratio would be about 31% from what they've laid out.

[Anonymous]

Shane, Thanks for the reply. The fha limits were I want to buy are 292,000.

As for my credit, you replied to one of my previous posts, we had a forclosure judgement from 2001, which Im happy to report seem to be falling off our credit report at least experian it came off, I disputed w/ transunion and equifax about the filing dates it seems from court records it was filed 2-2001 and is listed on cr 4-2001. so I hope it comes off. But right now our fico scores are average at 618, so I guess fha will be best for us. But just so I know, what would be the differance between conventional and fha, is coventional mortgages generally better?

[ShanetheMortgageMan]

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bdbhg5 wrote:

Shane, Thanks for the reply. The fha limits were I want to buy are 292,000.

As for my credit, you replied to one of my previous posts, we had a forclosure judgement from 2001, which Im happy to report seem to be falling off our credit report at least experian it came off, I disputed w/ transunion and equifax about the filing dates it seems from court records it was filed 2-2001 and is listed on cr 4-2001. so I hope it comes off. But right now our fico scores are average at 618, so I guess fha will be best for us. But just so I know, what would be the differance between conventional and fha, is coventional mortgages generally better?

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If you had a 680+ score or 5%+ down, then conventional financing would be good to look into... less than that, the interest rates get higher because scores less than 680 along with LTV's over 70% have rate adjustments.  I scrolled back and remember your post about the judgment now.. if it's still owing, it will need to be addressed before you can qualify for FHA.  Might be best to see if it falls off your other bureaus like it did on Experian.