Do I Qualify??

[Anonymous]

Here is my current situation:  I have been living with my boyfriend for 11 years.  We have a son that will be turning 6 this year and I would REALLY like to purchase a home soon.  The only thing that I am concerned about is the fact that I will be applying for the loan by myself.  He has about 10 charge-offs and a judgment.  It would take us years to pay everything off, so having him as a co-borrower is out of the question.  He is considering bankruptcy, and I know that you are not allowed to apply for two years following the discharge.  So my question to you guys is….. do you think I qualify on my own?  Here is my monthly debt:

Take home pay:  $2094.00/month (a little less than 40k/year)

Credit card payments:  $192.00

Student Loan payments:  $51.00

Car Loan payments:  two cars under my name @ $175.00 and $263.00, which equals $438.00

His take home pay is $2000.00/month.  He obviously has no monthly payments because of his credit issues.  He pays the light bill, the rent ($850.00), and gives me the rest so that I can manage the rest of the bills (cell phones, cable, internet, etc.)

From what I understand, only the things that show up on your credit report are counted towards DTI?  Will I have to provide cell phone, car insurance payment information?  Also, do they count AMEX in your DTI?  If so, how do they calculate AMEX?  I have NPSL and my monthly payments vary, but it is paid in full every month. 

Also, are they going to ask me to show proof of rent?  Because all the rent checks are under his name.

Any help would be greatly appreciated! 

[tooleman694]

Your DTI will be thru the roof, what are your credit scores. What kind of down payment.

[Anonymous]

First thing would be to knock off all credit card payments to about max of 25-35 dollars a month.

When applying do not use Amex charge card at all.

You may have to show proof of rent.

By yourself will not get you very much house in your present situation.

[Anonymous]

My Equifax (MyFico) is at 621, TU (Walmart FICO) is 669 and my Experian (FAKO thru Creditkeeper) is at a 659. 

I have no downpayment as of today, but I plan on starting to save.  I was thinking of going the NACA route, but I feel that the fact that none of my rent payments have been made under my name will bite me in the butt.  I was also thinking maybe FHA?  I could use some of the first time homebuyer down payment assistment programs offered here in Florida.

[Anonymous]

NACA is an option. Are you on the lease? Can you be put on the lease? If no lease will landlord start sending receipts in your name?

Problem I see is your debt is way to high by yourself.

Going the NACA route will give you time to address paying down some of the debt and building up your credit.

[Anonymous]

Yes, I am.  Since I live in a condo with a HOA, they required everyone living in the apartment to be on the lease.  My landlord is a family member - we pay him by check and he never gives us a receipt, unfortunately.

Would you advise paying down just the credit cards?  Or the credit cards and the auto loans?

[awdsmama]

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@Anonymous wrote:

Yes, I am.  Since I live in a condo with a HOA, they required everyone living in the apartment to be on the lease.  My landlord is a family member - we pay him by check and he never gives us a receipt, unfortunately.

Would you advise paying down just the credit cards?  Or the credit cards and the auto loans?

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You can buy a receipt book at any Wal Mart or office supply store.  ;-)  Check your online banking for the dates you wrote the checks and ask landlord to make receipts. 

[Anonymous]

I would start with CC's as that will give you your biggest boost in scores.

[Anonymous]

Thanks so much for the advice....! You guys are great. 

[jadeite788]

i dont know I calculated her DTI  at about 32% if that is all she has on her credit report reporting monthly.  It depends what is exactly on her credit report.