Please educated me as to what there approval chances are

[Cadillac-XTS]

Please educated me as to what there approval chances are. They are looking to purchase a home around 130k with 20% down around 12/2013.Thanks again

Him: Get $710 a month for Social Security Disability

Have several credit cards ( not sure how many ) totaling 15k with estimated $600 in balances

No collections,judgements,or tax liens

Several paid off auto loans and no current car note

Mid Fico Score is 700

 Her: $2500 monthly. Employed over 5 yrs as a Nurse

Listed as AU on 3 of his cc's which is a 4250 limit for all 3

Has a tax lien from 2005 which she sends in $25 a month for.I believe the tax lien balance is rougly $9.5k based on her est.

Have around 15 CO/CA accounts on each report ( 14 of them fall off through the year prior to Dec which is when they are looking to purchase)

Mid Fico Score is 620

[webhopper]

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@Credit314 wrote:

Please educated me as to what there approval chances are. They are looking to purchase a home around 130k with 20% down around 12/2013.Thanks again

Him: Get $710 a month for Social Security Disability

Have several credit cards ( not sure how many ) totaling 15k with estimated $600 in balances

No collections,judgements,or tax liens

Several paid off auto loans and no current car note

Mid Fico Score is 700

 Her: $2500 monthly. Employed over 5 yrs as a Nurse

Listed as AU on 3 of his cc's which is a 4250 limit for all 3

Has a tax lien from 2005 which she sends in $25 a month for.I believe the tax lien balance is rougly $9.5k based on her est.

Have around 15 CO/CA accounts on each report ( 14 of them fall off through the year prior to Dec which is when they are looking to purchase)

Mid Fico Score is 620

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They should have no problems getting approved for FHA... or maybe even conventional once her scores jump from the negatives falling off. She should make sure she discloses the tax payment that she pays...

[Cadillac-XTS]

Thanks. I think they mainly are concerned due to the fact he only get $710 in Social Security a month,

[MovingForward_2012]

The total income is sufficient to qualify for a home. The mortgage payment should be no more than 40% of their total income after taxes. So the max home price should come in around $200K as an estimate.

[Cadillac-XTS]

Can you please help me understand how you calucated that amount? They only looking at around 130k so do you have a rough idea of what they will be looking at as far as a monthly payment and etc. Thanks

[Cadillac-XTS]

Oh my sorry. I figured it out myself. So they cant exceed $1284 a month for the mortgage right? How exactly does the Social Security come into play since its such a small monthly amount?

[MovingForward_2012]

Yes so $1,000 a month for a $200K home for just principal and interest. So you have to add in mortgage and homeowners ins, and property taxes. For a $130K home, they are looking at $650 per mo for just principal and interest. It is approx. $25 per mo for every $5,000 financed minus ins and taxes. Hope this helps.

[MovingForward_2012]

SSI is still valid income and helps increase how much they can purchase. The person making $2500 a month could get approved on their own for $130K but that price would be about the max affordable.

[Cadillac-XTS]

Thanks a great deal. I will forward this information to them.