DW getting closer...

[tcbofade]

1. Credit.   EX 700, TU 652, EQ unknown.  One medical baddie from 12/08 that will fall off of EQ in January of 14, Fall off of TU in 12/13, and is already gone from EX.
2. Income.  $31,200 annual.
3. Source of income.  Employed.
4. Monthly debt payments.  $200 CC debt, decreasing every month. 
5. Employment: Current employer not quite one year, over twenty years in the industry.
6. Assets/Reserves. $5,000
7. Location.  Wyandotte, KS
8. Property.  Single family home.
9. Value. $150,000
10. Occupancy.  Primary residence.
11. Transaction Type.Purchase.

[ShanetheMortgageMan]

Yeah with that income $150k would be a little too high...  $135k with 5% down on conventional & opting for a single premium PMI instead of the monthly PMI could be possible.  Or $135k with 3.5% down on FHA would be possible too.  I'm assuming a 2% tax rate (i.e. $150k would have $3k/year in property taxes).

Would you be on the mortgage/do you have income?

[tcbofade]

No, I won't be on the mortgage...yes, I have income, but I also have lots and lots of debt. 

[ShanetheMortgageMan]

Are your debt payments more than 40% of your income?

[tcbofade]

Yep.  Credit cards + car payment #1 + car payment #2 + loan payment + child support = 106% of my documentable income.

[ShanetheMortgageMan]

Gotcha - paying off her credit card can qualify for a little more with conventional financing, and a co-signer could help increase qualifying income... but other than those not much else can increase the amount you can qualify for.

[tcbofade]

I think that I'm going to send her to talk to the mortgage banker roughly 01 November.

I'm sure that she'll be pre qualified, but don't know for how many dollars...then we'll have to decide to purchase a home for x (amount of pre approval) or wait another year.

We shall see.

Thanks for your help!

[tcbofade]

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@ShanetheMortgageMan wrote:

Yeah with that income $150k would be a little too high...  $135k with 5% down on conventional & opting for a single premium PMI instead of the monthly PMI could be possible.  Or $135k with 3.5% down on FHA would be possible too.  I'm assuming a 2% tax rate (i.e. $150k would have $3k/year in property taxes).

Would you be on the mortgage/do you have income?

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Gee, you NAILED that... pre approved for $135k FHA or conventional....she's going house shopping this weekend...