Thoughts on options: Looking to purchase a vacation home. 136k. Owner is looking for 50k down and willing to owner finance at 2%.We would like to refi with 70k cash out..
Current Situation:
Me: Full Time Steady Employment, Been at my current position 8 months but with a previous employer 14 years in the same field. 76K Salary 10% Bonus: Credit Score: 635ish (paying off a cc this week in full. LO stated based on simulation this should bring me around 647, This is a CHASE card to credit bureaus should be updated +1 day of payoff)
Husband: Self Employed. Makes very little on paper due to write offs. Credit Score 650ish (authorized used on above credit card; will increase credit score as well)
My credit report has a medical collection dated 2012 for 2600. LO said I could pay it off now or pay off at closing. Also have $242 from TMOBILE in collection I was unaware of. Credit utilization after above payoff should be around 25%. $1700/$6800 on two open cc’s.
Husband is currently the only one on the mortgage as it was purchased prior our marriage at a high interest rate. Since then, he has become self -employed and does not make enough money on paper to refinance. We would need my income to refinance at the lower rate and get cash out. LO suggested that we may be able to submit our joint bank statement where my income is directly deposited weekly ($971) along with a savings account that currently has 15k that has been sitting in there 6+ months. His income is in a business account that gets daily check deposits from customers that can be verified, but will take a substantial amount of time.
I recently liquidated a previous employers 401k and had a 10k deposit into that joint account. (I know! I know- but needed the funds to pay off 4k to get over a 640 score to qualify) I can easily verify these funds. Since I can verify this shouldn’t be a problem, correct? This will show up in my 8/10 statement. Thinking I will have submitted an application prior to that and this statement won’t be out yet. But I can be prepared to document where the funds came from. The last three bank statements are as follows:
July: Low Balance $62.76 Average balance $642.43
June: Low balance $-525.85 Average balance $491.35- *TWO NSFS on the same day for $35 each
May: Low balance $106.69 Average balance $1,635.78
Since the bills come out of this joint account. There is very little money that remains in this account.
Current Mortgage Info:
187k TOTAL out on two unit condo. Thinking we can get it appraised at at least 325k. May even be higher.
153k BOA mortgage at 5.75%.
34K Closed Equity Line with PNC (I believe closed as the term was up).
So looking for 187k to pay off current mortgage and 70 to cash out for a total of 257k. We are looking for a 15year and I am getting rates between 3.875 and 4.125.
More time would allow me to clean up my bank account however the opportunity to purchase this place came up quick.
I also have about 2500 in current 401k and 3k in an IRA.
What are my chances? TIA!
Starting Scores: (AUG 2015) EQ: 662 TU: 623 EXP: 654
Current Scores: (JUNE 2017) EQ: 747 TU: 725 EXP: 733
Updated Goal Scores: 775
