Howdy everyone, I've been looking through the forums for a little over a year now while I rebuilt my credit. I started with a score of 489 last January and now I'm up to about a 670 fico8. My Middle Mortgage fico is now a 626.
My UTI is around 27% with 4 credit cards
My DTI is low at 17.3%
with a calculated 1% student loan payment of $334
minimum credit card payment is $170
I know once I start applying my score will be getting hit, So I was wondering what my best option would be as far as lenders. I was interested in a home in the 150-180k range.
I have access to $10k in local DPA grants here in Texas
I have access to NFCU and USAA as lenders but I hear mixed reviews
USDA is out as an option as the qualifying zip codes are too far from my job
Congratulations on your credit and score improvement. That was quite an accomplishment. You seem to be a perfect candidate for home loan and you have several options here in the Lone Star State.
As far as which lender to use? All I can say is vet your Lender and Loan Officer well. I can't tell you how many calls get a week from desperate people trying to figure what to do after receive the news that their home loan was denied.
There is nothing worse than being packed up and no where to go. Let me know if you have any further questions. Best wishes to you!
At the beginning of the process find out what the bank considers for your student loan payments. When my partner and I went through with our mortgage (FHA, I know... I know...), they wanted to count my student loan payments at 2-3% of the balance, regardless of what the payment actually is/would be. Underwriting can be a huge obstacle. I ended up dropping off the application to get us approved, and supplied the down payment as a gift. Just have proof of your payment, and if it is a payment plan such as the pay as you earn or the income-based repayment plan, just know that they will most likely want to use the stand 10-year repayment plan.
As far as interest/fees go, for a 620 middle would I be better off with a 97/3 conventional or fha loan. I live in and Work for the city of san antonio so I have access to 10k-22k in DPA grants so I could cover the 3% or 3.5% down.
I guess my main concern is just I dont want to run my credit a million times if I don't have too. I've worked so hard to get my score up I want to take a sniper approach rather than shotgun