topic Re: Help Needed: Do I qualify? in Mortgage Loans

Help Needed: Do I qualify?

rsmithjr42089 — Tue, 07 Jan 2014 02:38:09 GMT

Hello,

Id like to see if I would qualify for a FHA mortgage.
I live near Buffalo, NY and I am a PhD student with a salary of $21,500 per year and will remain or increase over the next 5 years.
I have student loans but none of them are in payment right now and I have been told by many that they will not include payments on student loans if on deferment, which mine will be deffered for at least the next 5 years. Total student loans are about 150K.
My credit is not the best, had a bad start when I was just starting out. I have a credit of 612 low to 632 high depending on source. Im not looking for the best rates, just a mortgage in general. I pay $835 in rent for a 3bed duplex that I will never own and Im sick of it. My overall mortgage needs to be $800 or less.
My credit history has no bankruptcies or charge-offs...it has three BAD accounts from a few years ago with one closed in 2011 but with a 120 day late in its history ( I was unemployed, just had a baby, and moved to a new city for undergrad college..bad few months). Two others with 90 day lates and those were closed in 2009. Since then I have 3 major credit cards, a few other revolving with either no lates or one 30 day late.
Total monthly debt is 135 in minimum payments.
I expect my credit to rise though as a few items on my reports arent mine and are being disputed.
I dont have employment history, as I only started PhD in the Summer of 2013 and was "half" salaried until the beginning of this year.
I was told by some people I spoke with that as Long as I had some form of proof that I was registered in school for the past two years (try 6 years now! lol) that this would not be an issue.
My goal mortgage is 80K, but if I can get more I would go to my max DTI allowable. In my area a mortgage of 80-100K would get me the house I need for my family of 3 kids and my wife (who is a stay at home mom with "just" started credit history).

Please help me!

Re: Help Needed: Do I qualify?

BrianB_The_Loan_Professor — Tue, 07 Jan 2014 03:56:19 GMT

21500 = 1790 a month

45% of that is 806

You have 135 in Mim payments this will mean the amount you have left for a mortgage is around 670

Do you have any lates within the last 12 months?

How long will you be in school - the student loans need to be in deferrment for at least a year not to be included

You may be ok at the 80k -100k range it may come down to the taxes and insurance in the region - if they are higher the morage will be on the lower end

Brian

Re: Help Needed: Do I qualify?

rsmithjr42089 — Tue, 07 Jan 2014 05:29:56 GMT

I will be in school for a minimum of five more years. I have a 30day late from august of 2013 on two accounts, was in the process of getting paid from my PhD salary and just did not have it that month. Will those disqualify me? Also I forgot to mention I have a paid collection with Verizon I settled two years ago.

Re: Help Needed: Do I qualify?

rsmithjr42089 — Tue, 07 Jan 2014 05:31:06 GMT

Also with my low score who would you recommend getting a mortgage from? Local or from some of the national ones I see listed on sites like zillow and trulia.

Re: Help Needed: Do I qualify?

StartingOver10 — Tue, 07 Jan 2014 12:50:14 GMT

Go to a mortgage banker, not just a mortgage broker.

A mortgage banker has many lender sources, but they also underwrite and fund the loan and then sell it as opposed to a mortgage broker that brings the parties together but does not fund the loan.

Stay away from the big box banks in your situation.

Is your income salary from a job or are you counting in your income some of the left over student loan funds? Don't laugh, I've seen others that think borrowed money is income. If it is income and not borrowed money, then go ahead and apply to see where you stand. You might be able to get a USDA loan based on your income so check into that as well.

Re: Help Needed: Do I qualify?

BrianB_The_Loan_Professor — Tue, 07 Jan 2014 16:09:49 GMT

The recent lates will not help and are likely a big part of why the scores are so low - if you have two 30 day lates within the last 12 months they can deny based on that.

You need to have your file run through an automated underwriting system to see what it comes back with.

If it gives you an approval an underwritiner may look past them.