Where to start?

[bridgetkaryn]

I am going to get detailed here... I am trying to figure out if I can get approved for a mortgage...

Me:

Annual income: $95,000/yr

Additional income: $54,000/yr (child support and alimony)

Debts: $1375/mo ($560/mo car (9 payments left), $450 student loans, $365/mo CC)

Credit Cards: Monthly payments about $100-150/mo after I make some large payments. UTL is <25%

Credit Scores: EX: 645 EQ: 652 TU:642 -I expect my Credit scores to go up in the next couple as I have a few inconsistencies reporting, some GW letters, and my UTL should also drop.

I have a pretty significant tax return coming (about $9K) and that would pay off my CC's completely or I could use that to pay off all of my car and part of my CC debt... I am looking to buy a house for about $450K, with my current credit and debts, is it better for me to pay off my car, or my CC's? Also, I am pretty sure my mom will put me as an authorized user on one of her cards with no use and a high limit... This would drop my UTL, right?

I am hoping I can qualify for a USDA loan... I am a NFCU member also and a first time home buyer.

Any advice or help is greatly appreciated.

[edcampbell613]

You need to go to USDA and do an income calculation, 

In my area you make to much money to qualify for it. And they limit the loan size.

USDA Income Limits

Also you need to make sure the property you are trying to buy is in the USDA eligible area.

USDA Property Search

Your auto loan will not be calculated as it is less than 10 payments (most loans, with most banks, unless it's a lease, most banks again)

Auth user on credit cards, once again, depending on the lender, they usually don't count them against you.

You got plenty of income to qualify for the loan size you are looking for. Just might need to save up 5% down for a conventional loan

[bridgetkaryn]

Do you know anything about Navy Federal Mortgages? I am a member there... I could probably come up with the 5% down as a gift... My parents have money to invest since selling their home and being an almost only child (we have very little contact with my brother) I know they would be willing to help there...

Let me just clear up the few baddies that I will reach out to them!

[edcampbell613]

Navy Federal Credit Union? or Navy Federal Mortgages?

I know about the credit union, 

Also, with that said, 

are you past military?

VA loans are the best if you qualify for it.

[bridgetkaryn]

I am not past military but I am a member at NFCU.

Does it make a difference if they are my primary bank? I don't mind switching my direct deposit to them if it will help me get amortgage with them.

Thanks!

[edcampbell613]

Only veterans or spouses from deceased veterans are elig for a VA loan.

I would find a broker as they will have more options for you, then find out what the credit union can do.

You need options!

[Revelate]

Regarding the tax return: do some rough napkin math and see if you qualify on backend DTI based on your income with the current student and car loan amounts; if you do, pay the credit cards down and get them reporting as everyone suggests on this forum, and go on with life.

If you don't clear the DTI hurdle, then write the check for the car, clean up what you can on the CC's, and subsequently look into getting added as an AU (not on an Amex as that reports as a new tradeline) but AU's often don't count the same in underwriting as your own tradeline; however, if it helps push your score into a higher tier on the FICO pull it's probably worth doing.

[ShanetheMortgageMan]

For USDA the guidelines to exclude installment debt with not many payments left is:

Installment debts with more than six months repayment remaining must be included in the debt ratio per 1980.345(c)(1). Installment debts with less than six months repayment may continue to be included in the debt ratio at the discretion of the lenders underwriter.