topic Re: Looking for help trying to get a mortgage! in Mortgage Loans

Looking for help trying to get a mortgage!

NY168101 — Wed, 30 Jul 2025 14:26:45 GMT

I am still learning credit, and building credit to get a mortgage. Currently, I am a healthcare professional making $130K a year and am playing catch up moving across country 2 times for work. We moved west for a great work opportunity, then had to move back east 14 months later because my mom, and my wifes mom both got diagnosed with aggressive cancers. Financially, we took a big hit selling our home in georgia to move, then renting in Utah and moving again to rent in Indiana. We are in a lower cost of living area while still making a decent wage, and my wife is disabled so I am the primary bread winner. I am on here because I am trying to get a plan together for me to get a mortgage hopefully by the time our lease is up in November. The 2 mortgage guys I spoke with in indiana just said pay down debt which I have done and am doing, but they don't seem serious, so I am doing what I can on my own to prevent more inquires without results. My mortgage guy back in georgia was great with helping us formulate a plan to get our home, but here in Indiana, I am not having the same luck. My Fico has my current mortgage scores using Fico Score 5,4&2 at EQ:559, Trans:621, Exp:649. I have a few lates and a charge off that was paid in full. I have 2 car loans that total $1050 a month, and a few personal loans that total $510 a month. My student loans are $485 a month, but currently deferred while being investigated to be cancelled. I have a few credit cards and 2 are over 80% utilazation, while all the others are under 40% I also just found out today my dad had added me as an AU on one of his cards with a $13K limit 4 years ago and it is not being reported on my report, so he is working on that now to get reported. I have some reserves, but here in Indiana I was looking to get into a home for $280k or less maybe out in the country and use a USDA loan, or a down payment assistance program. The loan officer stated I needed over 640 middle score to get there and I have been paying down as much as I can to raise scores.When my score was pulled in May of this year, the broker said I was at Trans:611, Exp:558, and EQ:577. I have made progress, but it seems like my scores have stalled and I'm not sure what else to do. I have submitted letters for goodwill with my credit card companies to get the 3 lates dropped, they stated no. I have paid 2 of my credit cards to a zero balance 2 months ago with no change. Credit karma says I am eligible for a mortgage of $220k, but I need more than that and I don't trust credit karma. So my questions are should I refinance my largest car note to get the payment lower, I can decrease my car note by $285 currently. I also have a navy federal account that was closed, but it is still in good standing and I am paying on it. It is at $17k and I am paying almost $750 a month on it, $300 more a month than the statement minimum. Hopefully my dads AU help will boost my credit by $13k since PNC bank says I've been on it for 4.5years, but the credit companies are not reporting it. Any help is appreciated because we are not moving anymore and our rental is hard to live in. I know it isn't a great situation I am in, but I am doing the best I can and will get it done somehow. Thanks for any help and or ideas.

Re: Looking for help trying to get a mortgage!

Cowboys4Life — Wed, 30 Jul 2025 16:43:18 GMT

I am going to be straight up with my thoughts on this so be prepared you may not like it.

"I have 2 car loans that total $1050 a month, and a few personal loans that total $510 a month.

So my questions are should I refinance my largest car note to get the payment lower, I can decrease my car note by $285 currently. "

Pay off the personal loans. Those hurt your DTI profile seriously when mortgage shopping. If your wife is disabled then you do not need 2 cars right now. Instead of refinancing one sell the unneeded one and pay off more debt AFTER you get the house you can look into buying a reasonable car for her.

"I have a few credit cards and 2 are over 80% utilazation, while all the others are under 40% I also just found out today my dad had added me as an AU on one of his cards with a $13K limit 4 years ago and it is not being reported on my report, so he is working on that now to get reported."

For the best FICO mortgage scores AZEO is the best practice. The extremely high usage is what is killing your scores along with the previous late(s) and charge off. It is better now that it is paid but only time is going to heal that wound. If you can't get to AZEO for a few months prior to applying for the mortgage then you definitely need that credit card debt to be below 29% for the best possible mortgage scores with balances. As for the AU card the creditors and FICO caught on to that years ago and with your other balances so high it really isn't going to help you more than 3-4 points if at all.

I would look at the snowball method of getting this stuff paid down/off as quickly as possible. I would also do a big budget review. What can be cut completely? Reduce cell phone expenses, cut cable, cheap internet plan for at home. No more streaming services. STOP any unnecessary expense until you hit your goal of the mortgage. Once you have the loan and are closed on the house and moved in THEN you can restart some of the fun stuff to pad your lifestyle. Right now you need to bare knuckle this expense wise to reach your goal in just a couple of months. Another option is to not renew the lease but go month to month if your new budget reveals you can't get the goal by November but can by say February. You can do this but it is going to take some serious dedication and financial discipline to get there for a bit.

Re: Looking for help trying to get a mortgage!

ShanetheMortgageMan — Wed, 30 Jul 2025 17:19:36 GMT

Most lenders either need a 620 or 640 score for USDA financing, although the lowest I've seen is a 550.

USDA is very sensitive to your debt-to-income ratio though, usually the maximum housing ratio is 29% but it can be stretched to around 33% with 680+ scores. With $130k/year of income and your current scores you're probably looking at a max sales price of around $400k. USDA also has a total debt ratio maximum of 41%, but can be stretched to around 45% with 680+ scores. I counted about $2,495/mo in other payments from what you wrote, so that'll reduce the maximum sales price you can qualify for to around $275k or so.

FHA would potentially allow you to qualify for higher sales prices, as the maximum ratios are 46.99/56.99%, even without great credit. Above a $400k sales price could be possible in theory, so the $280k price range you're looking in shouldn't be an issue for your income and debt payments.

Re: Looking for help trying to get a mortgage!

NY168101 — Wed, 30 Jul 2025 17:42:21 GMT

Thanks so much for the guide and I will apply it to the best of my ability. I have been budgetting and cutting through the fat so to speak, thats how I am improving currently. My wife has to run the kids around and I am a healthcare professional that is a float between 3 hospitals and on call so I have to keep the cars. The larger one we had to get for driving to get to her mom with cancer and my own mom. When I'm working, or doing uber, my wife deals with the kids and takes care of her mom and mines. 2 of my loans will be paid off in the next few months, the other will take a little more time. I can get most of my cards to zero balances with the exception of my 2 largest, I can maybe get them down under 40% by october if I am lucky. Thanks!

Re: Looking for help trying to get a mortgage!

FlaDude — Thu, 31 Jul 2025 15:09:57 GMT

Try to get your highest utilization CC acounts under 49%. The general advice here is to not get any new credit within one year of trying to get a mortgage so doing a car refi might be better done after you get the house. A new loan will add one or more inquries and set your age of newest account metric back to zero. How old is your newest account? If it less than a year old but close you might see a little jump when that threshold is passed. If you don't mind spending a few dollars, you can subscribe here to myFICO (or other paid services) to see your full set of FICO scores yourself.