11-08-2012 09:23 AM - edited 11-08-2012 09:29 AM
As of Aug 18th, my TU fico score is 697...I had two medical collections in 2008 that were both paid off. Charge off account that was paid in 07. Most recent late payment was 7 years ago. I am employed at the same place for 5 years, my salary is about 41,000. I would be a first time homebuyer.
My fiance, had a foreclosure in 08-09 due to an ex girlfriend of his (long story) and some collections that he has since paid. Anyways, I don't know his score now, but I imagine it isn't that great. His income fluctuates but yearly is usually 50-60k.
We found a great foreclosure priced at about 130k. What kind of options are there? I don't think I would be able to qualify on my own because I would need his income...but what are the chances of being offered a loan with his foreclosure and credit? This is all new to me so any advice is greatly appreciated! Thanks
11-08-2012 10:04 AM
I don't think you would have a problem going the FHA route. What I would recommend is for you to find a good mortgage person who can advise you based on your circumstances. There are lots of options to get people into houses right now. Your score is not that bad. Do you have down payment money?
If you are working with a real estate agent, the definitely will know someone who can work some magic for you.
11-08-2012 10:09 AM
If it is $130K and your income is $41K then you can get approved on your own as long as your debt to income is below 45%. If you go with 20% down payment your monthly payment will be around $500 at 3.5% interest and 30 year loan. With your monthly income being around $3.4K you stand a good chance. Even if you go with a smaller down payment I still think you stand a good chance, here people get approved for $100-$130k mortgages with around $2K monthly/$24K yearly.
Try on your own first and if you can't get approved, find if it is due to income or credit and then you can act accordingly. If due to income explain your situation (if fiance I assume getting married sometime soon) and see if they can include his income and only your credit, there isn't much that you can do if you can't qualify with your scores considering he will probably have worse credit.
*** If it can wait try to fix his credit (and yours) with GWs, PFDs, etc. Get your report so you know where you stand and try to get the negatives removed. I advice to go to the rebuilding credit area of this forum.
11-08-2012 04:49 PM
+1 your credit will improve greatly over the next 6 mo with just stuff falling off and a few GWs to the med col.... work on trying to improve his but I would not buy a house before you or married that is just a personal thing...
You have come to he right place!!!! Good Luck
11-09-2012 08:33 AM
thanks for the input! We decided to try for preapproval with both of us. Suprisingly, my middle score was 736!! Fiance's was better than I imagined at 647 but because of the foreclosure, he cannot be on the loan whatsoever. She said the USDA loan would be my best option. She will be sending over a preapproval letter today.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO