Are we likely to be approved for $85,000.00?

cayennekeeper · ‎06-03-2022

My parents are gifting me and my spouse Porsche Cayenne (by paying the monthly loan amount) but would prefer that we got the auto loan in our names, because they do not want to increase their DTI. Thoughts on likelihood of approval if we apply jointly or individually?

We'd prefer to be approved be NFCU (not active or veterans) but are open to other options.

Goal: Finance $85,000.00 max

Auto Specs:

New 2022 Porsche Cayenne (in production)
Purchase Price - $93,880.00 (MSRP; no dealer markup)
Partial Payment to secure allocation - $2,500.00
Remaining balance - $91,380.00 + $6493.80 (taxes & fees) = $97,873.80

Financial/Credit Profile:

Spouse 1:

Monthly Gross Income - $8,000.00
DTI - 2%
Avg Age of Account - 4 yrs 1 mo
EX (FICO8) - 758; 5 Open Accounts (combo of credit cards and authorized user); 3% Credit Usage
EQ (FICO8) - 819; 4 Open Accounts (combo of credit cards and authorized user); 2% Credit Usage

Note: the missing open account is a cc where spouse 1 is an authorized user

TU (FICO8) - 771; 4 Open Accounts (combo of credit cards and authorized use); 3% Credit Usage

Note: the missing open account is a cc where spouse 1 is an authorized user

No past auto loans or mortgage

Spouse 2:

Monthly Gross Income - $9,750.00
DTI – 19.8% (student loan payment would generally increase to 23% but reporting as zero since covid-19 national administrative forebearance)
Avg Age of Account – 6 yrs 3 mo
7% revolving utilization
EX (FICO8) - 765; 8 Open Accounts (combo of credit cards, authorized user, mortgage, student loan)
EQ (FICO8) - 791; 8 Open Accounts (combo of credit cards, authorized user, mortgage, student loan)
TU (FICO8) - 771; 8 Open Accounts (combo of credit cards, authorized user, mortgage, student loan)
2014 auto loan that closed due to refinance and my name removed from the loan
Credit Inquiries in past year – 3
- June 2021 - inquired about refinancing mortgage but wasnt worth it
- August 2021 - inquired and actually refinanced
- January 2022 - applied and approved for new CC

simplynoir · ‎06-03-2022

Just to clarify neither you or your spouse are members of NFCU already and are not active/veteran? If that's the case they won't be an option for you two

To go back to the loan odds chances look good for you and your spouse. Might have to be where it will have to be a joint application but looking very good. Tbh Porsche Financial Services might give you a very competitive rate with those stats. If either of you don't mind doing some rate shopping I'd get some offers from banks you do business with but don't discount perhaps getting offers from PFS

cayennekeeper · ‎06-03-2022

Thanks for your input! We are both members of NFCU; we have a joint checking and savings, where spouse 1 is the primary and I have a separate checking and savings and one of my credit cards is their More Rewards Amex.

simplynoir · ‎06-03-2022

@cayennekeeper wrote:
Thanks for your input! We are both members of NFCU; we have a joint checking and savings, where spouse 1 is the primary and I have a separate checking and savings and one of my credit cards is their More Rewards Amex.

In that case you two should be sitting pretty when you two finally decide to pull the trigger with NFCU. If you two are set on getting a loan from them I don't think you will get a much better rate we are probably talking tenths of a percentage points really lol if you decide to rate shop around if that matters

Anonymous · ‎06-03-2022

cayennekeeper · ‎06-03-2022

Spouse 1 definitely doesn't have an auto or mortgage but I've had a mortgage since 2019 that I recently refinanced in 2021(balance: $340k) and I had an auto loan my mother put me on to help build my credit, but she ultimately refinanced without including me so it's closed. Do you think spouse 1's lack of diverse credit will be a hinder?

@Anonymous wrote:
The only blip I see is lack of auto loans/mortgage. Other than that, things look good.

cashorcharge · ‎06-03-2022

Just doing some quick math, with your purchase price and today's APR for a 60 month loan (assuming you don't go longer) you are looking a payment of roughly $1500-$1600 per month...assuming you get close to 3% APR with NFCU (pulled from their website). You mentioned a parent will be helping/paying for that but the approval won't be based on money coming from them, it'll be your own finances.

NFCU does have an auto-loan pre-approval process but I don't have any experience with it. I can say that Porsche Financial will likely pull your EX F8 score for approval. I don't think the "approval" part will be an issue...but the rate may be. Porsche Financial isn't really known for great financing rates...on a purchase or a lease...since you have a relationship already with NFCU, you'll have more leverage there.

Approval...I would venture to say yes. Rate and Term....not sure. Assuming my payment math is correct...how that does that affect your DTI? That % will likely play a role in the rate and term they'll go

simplynoir · ‎06-03-2022

@cayennekeeper wrote:
Spouse 1 definitely doesn't have an auto or mortgage but I've had a mortgage since 2019 that I recently refinanced in 2021(balance: $340k) and I had an auto loan my mother put me on to help build my credit, but she ultimately refinanced without including me so it's closed. Do you think spouse 1's lack of diverse credit will be a hinder?
@Anonymous wrote:
The only blip I see is lack of auto loans/mortgage. Other than that, things look good.

I don't think so especially if it will be a join application. If deciding on the solo applicant route your spouse's credit is probably better because their DTI is minimal but that's not to say yours is not good as well since you fall under the "rule of thumb 35% DTI" threshold. Can't speak for the rate since that may vary depending on who you shop with. At that point it really depends on how comfortable both of you are with possible multiple hard pulls to shop around for the best terms

Personally, I would see if your parents are willing to give you some of the money upfront as a down payment for the car. Will help to lower the loan amount and get better terms

cayennekeeper · ‎06-03-2022

@cashorcharge wrote:
Just doing some quick math, with your purchase price and today's APR for a 60 month loan (assuming you don't go longer) you are looking a payment of roughly $1500-$1600 per month...assuming you get close to 3% APR with NFCU (pulled from their website). You mentioned a parent will be helping/paying for that but the approval won't be based on money coming from them, it'll be your own finances.

NFCU does have an auto-loan pre-approval process but I don't have any experience with it. I can say that Porsche Financial will likely pull your EX F8 score for approval. I don't think the "approval" part will be an issue...but the rate may be. Porsche Financial isn't really known for great financing rates...on a purchase or a lease...since you have a relationship already with NFCU, you'll have more leverage there.

Approval...I would venture to say yes. Rate and Term....not sure. Assuming my payment math is correct...how that does that affect your DTI? That % will likely play a role in the rate and term they'll go

DTI calculations:

Spouse 1 - max lending amount to stay at the 35% DTI is $2649.00
Spouse 2 - max lending amount to stay at the 35% DTI is $1481.5; im not sure how the bank will factor my student loans since my report does show a balance but the required payment is $0 due to the national forebearance; with my normal payment, my max lending amount to stay at the 35% is $1,157.00.
Together - 35% of our gross household is $6,212.5; max lending amount (w/$0 student loan factored) to stay at 35% is $4,432.5 and (w/my normal student loan payment factored) $4107.5.

ridgebackpilot · ‎06-04-2022

Porsche Financial currently has a lease offer on the 2022 Cayenne: $999 monthly, 36 months, $9.7K due at signing. Their financing offers aren't as attractive; you can probably do better at NFCU.