@Anonymous wrote:
Current situation
Wisconsin Resident (very near to the Twin Cities, MN)
Family of four
Rent - 875/mo (fair market is significantly higher and we expect to be bumped to 1000/1100 soon, in our city anything under 1200 is rare). Lease expires March 1, and I expect we will take a bump there. The new landlords just bumped us 100 this last March.
Total household income - 50k (30% is disability income)
My Mortgage FICOs are 654 (EX Fico2) 666 (TU Fico4) and 670 (EQ Fico5)
I know I will qualify for a 3.5 FHA, however, being as my credit is superior to my significant other, and her income is disabilty, I am keen on going solo with the mortgage (while including her income). I do not know if this is possible. We are not married.
Most of my credit is recent, my oldest account is just under a year old, with no missed payments on anything. I have one old derog on EX and TU from 2012 reported in 2014 (fall off date is May 2019)
I know from research that we can afford around 150k worth of house over a 30 year note (considering we pay already 875 in rent + renters insurance) a home payment of 900 inclusive of taxes/insurance would basically not impact the budget whatsoever. There is wiggle room up to 1100-1200 before it becomes far too expensive.
I also know there are programs for the Disabled for down payment assistance, and I am also aware of the FHA downpayment assistance loan, but whether those are accessible in our situation I do not know at this time.
I am open and available for followup questions as I regular this site quite a bit, and anyone with information that can point me in the right direction would be appreciated.
The goal here is a transition into a 2 or 3 bedroom home, in town, with a price tag not exceeding 150k (only slightly flexible, I simply cannot afford a 200k+ home), and get out of this rental wastebasket - considering I expect our rent to meet or exceed my maximum housing payment I could qualify for right now, the situation demands this to occur. I have roughly 6-9 months to make this happen.
What is your one derog? A collection or a late payment, if so how late 30, 60, 90? If a late payment, I'd advise using the goodwill saturation letter campaign and get it removed. If collection, is it a huge amount? If it isn't something substantial , first google the collection agency with pay for delete and see how willing they are to remove as such.
Is your utilization low? DTI will play a big part. You have many new accounts this year if I'm reading correctly. To boost scores, is having all revolving credit cards always report a zero balance at statement cut, not the due date, with the exception of one card (bank preferred, not store charge), for that, the balance should be under 8.9% of that one cards total line of credit. It is fine to charge on cards during the month, just pay them off before the statement, as if you let it go zero for months in a row, sometimes will not get a green check for reporting payment history.
Your significant other, is her file thicker and longer in history? Is her scores down by derogs, collections, judgments, a BK or high utilization? May I inquire what her mortgage scores report?
