Established Contributor
thankfulheart
Posts: 619
Registered: ‎09-26-2011
Re: (Hopefully) My Journey to Homeownership
[ Edited ]

USDA is a no-go for me.  They are asking for income documentation from my estranged husband that I simply cannot get (profit/loss statements).  He is self-employed and does not keep books like a normal person would which is one of the reasons we are "estranged".  Whatever, moving on to FHA.  I have the 3.5% downpayment, in fact, it's what the builder required for earnest money.  Now I have to find out if they are going to want MORE than that (I wouldn't know why they would, but then again, not very much has made sense in this process).

 

They are also going to hit me not only with the mortgage on the marital home, but 1/2 of the insurance/taxes on it as well. They are NOT going to include child support as it's only a separation agreeement and not a divorce. Both of these are also impacted by the "12 months of payment" rule.  We only filed the separation in December and I didn't know about the 12 month thing then. :smileysad:

 

I am still waiting to finish up the IBR business on the student loans as that's kind of a biggie for the UW.

 

She ran it again through automated underwriting and still got an approval which is great news. 

 

So, again, 1 step forward, 2 steps back.  I'm bummed about the $5K downpayment as I'd hoped to use that to outfit the kitchen with the appliances I want. Guess I just have to pray for a good Lowe's CL when I apply after closing. :smileywink:

 

Did some math tonight. My front end DTI is 28.5%. Back end DTI would be right at 50.75%. There just isn't anything more to cut at this point.  Adding the 1/2 of the insurance/property taxes is pushing me over. Seems like I should only be held liable for 1/2 the mortgage payment on the marital home.  Even so, the FHA mortgage payment is still less than what I pay in rent and is a smaller, energy efficient home which should make up for something, I hope.

Starting Score: 10/1/2011 EQ 568 TU 593
Current Score: EQ 664 TU 700 EX 701 (FAKO)