New to all this, what would I qualify for and what would be best?

[daeleesa]

Hi everyone,

I've been working on increasing my credit score the last couple years.  When I was younger and much dumber, I let my scores go to something awful (mid 500's).  I'm starting to feel better financially, and working on getting past the mid/high 600's.  I'd like to buy a house with my husband sometime next year.  I gross about 63k/year, but my husband grosses about 21k/year and pays $400 in child support each month.  Here are the rest of our stats - would we qualify for anything, and what would be the best option?  Should I apply only using my income?  Am I able to do that in the state of Texas?  So many questions...   I appreciate any info.

1. Credit.  Scores are:  EXP: 637/EQX: 691/TU: 679.   No public records, liens, or judgements - all accounts are current, except for a closed car loan with Honda that had 4 late payments, but that loan was paid off back in 2008.   2 collections that were paid off 3 years ago.  Trying to pay down the remaining $3500 in credit card debt before applying for the mortgage.
2. Income.  Stated above.
3. Source of income.  All income comes from full time employment for both me and my husband.
4. Monthly debt payments.   $550 car loan, 8 credit cards between us with minimum payments around $40 each, balance for cards totals $3500.
5. Employment  W2'd both of us - both in our jobs for almost 3 years now.
6. Assets/Reserves.  $12k with $9k vested in a 401K, $5k savings.
7. Location.  Texas, Jefferson county.
8. Property.  Single family home
9. Value.  Hoping for around the $150-$175k range, but can easily go lower to the $125k-$135k range
10. Occupancy.  Primary residence
11. Transaction Type.  First mortgage.

[daeleesa]

Quick update: hubby's credit scores are very similar to mine.  Maybe 5-10 points higher.

Really hoping someone can give me an idea of what I'm looking at.  I know I need to get more for a down payment, which will be coming sometime early next year since we'll be done paying for hubby's degree (I've been saving up for each semester and paying it off each time so we can avoid student loans).  So all that money I was putting towards his tuition will be going towards paying off the last of our debt (outside the car loan) and then beefing up what we have in savings.  I'd really like to try avoiding taking out a loan from our 401k if at all possible.

[DallasLoanGuy]

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@daeleesa wrote:

Hi everyone,

I've been working on increasing my credit score the last couple years.  When I was younger and much dumber, I let my scores go to something awful (mid 500's).  I'm starting to feel better financially, and working on getting past the mid/high 600's.  I'd like to buy a house with my husband sometime next year.  I gross about 63k/year, but my husband grosses about 21k/year and pays $400 in child support each month.  Here are the rest of our stats - would we qualify for anything, and what would be the best option?  Should I apply only using my income? why? his scores lower?  Am I able to do that in the state of Texas? yes, but hubby debts go against you on govt loans... but not conventional. So many questions...   I appreciate any info.

1. Credit.  Scores are:  EXP: 637/EQX: 691/TU: 679.  paying cards down to get over 680 mid score would be a big plus... No public records, liens, or judgements - all accounts are current, except for a closed car loan with Honda that had 4 late payments, but that loan was paid off back in 2008.   2 collections that were paid off 3 years ago.  Trying to pay down the remaining $3500 in credit card debt before applying for the mortgage.
2. Income.  Stated above.
3. Source of income.  All income comes from full time employment for both me and my husband.
4. Monthly debt payments.   $550 car loan, 8 credit cards between us with minimum payments around $40 each, balance for cards totals $3500.
5. Employment  W2'd both of us - both in our jobs for almost 3 years now.
6. Assets/Reserves.  $12k with $9k vested in a 401K, $5k savings.
7. Location.  Texas, Jefferson county.
8. Property.  Single family home
9. Value.  Hoping for around the $150-$175k range, but can easily go lower to the $125k-$135k range
10. Occupancy.  Primary residence
11. Transaction Type.  First mortgage.

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you look like a great candidate for a loan even at the high end of your range.... debt ratios are fine.