So here is my/our info below. Can I get a pulse check on where we are what we need to do? FHA is our only option, being 4 years out from a previous foreclosure. *IF* we include DH, the earliest we would even be eligible would be 01/20 because of the two late notations from his student loans in Nov and Dec 2018. If we do not include DH on the mortgage, I really don't know if my DTI actually does support it. I know its messy and we are cleaning it up. I guess I'm hoping for guidance without judgment on what to do from here. We currently throw $2300 a month to the wind by renting, so we want to get to a better credit state with the ultimate goal to get another mortgage. We handle that amount very well, with no missed or late payments in the 4 years we have rented here. We moved states in Dec 2014 for work and couldn't pay rent & our previous mortgage. The house was listed for sale but didn't sell until well after foreclosure. No deficiency judgment was filed at the time of foreclosure processing. That home was mortgaged by DH only, but it was also a community property state so I had to sign at closing as well, so my name was flagged when a lender tried to prequalify us for a mortgage in May 2018. Said it would be cleared by Oct 2018, so we should okay there. The DTI is what I'm concerned most with right now.
- Mortgage Credit Scores:
- TU 650, EX 645, EQ 627, as of 1/19/19 for Me.
- EQ 576, TU 527, EX 477, as of 12/21/18 for DH
- Credit Negatives: If you have any, what negatives are on your credit reports. For each negative, please provide:
Me:
- 1 Medical Collection (1 unpaid - $200) - 2013
- Previous Lates - Last in 02/2017 when I got my act together and realized what credit and CRs meant.
- 1 paid charge off auto loan (DOFD 11/2014)
- Some SL tradelines reports as Paid Collection (federal student loans reconsolidated into one. Didn't know to rehab instead.)
- No TLs at all that are closed are reporting a balance of any type.
For DH:
- 1 Medical Collection, paid, $421. PFD approved and should come off in the next 90 days.
- 1 Charge Off, educational but not student loan, $2200, from 2016. Currently unpaid but working on PFD.
- 90d late in Nov 2018, across 17 SL tradelines (Fed Student Loan, before we realized they had come due)
- 120d late in Dec 2018 (same as above)
- 1 foreclosure - (DOFD 03/2015) - Potential lender said not in caivrs after 10/2018.
- Gross Income. Gross income (before witholdings, medical/dental, 401k contributions), per your IRS tax returns, is what is important when qualifying, not net income.
- ~100k annual salary
- ~15k bonus (15%) not guaranteed annually but I've received the past 4 years
- $5700 child support
- DH information: $75k salary, 25k bonus
- Source of income. Where is the income coming from? List each source.
- FTE
- bonus
- child support
- Monthly debt payments.
- Auto loan 1 ($556/mo; $13k remaining)
- Auto loan 2 ($400/mo; $17k remaining, only on DH's reports but will impact my debts for FHA)
- Credit Card (current bal $1917/$4100, reporting 57% utl but this will refresh after 2/2 to be at 46% utl) *4 total cards. Actively paying down the balance to 8% on one card for AZEO, should be within 1-2 months.
- Student Loan 1 (Me - $417 on IBR; $117k total, $607 if I switch to a plan that will amortize the loan)
- Student Loan 2 (DH - $634 not on IBR; $55k total, looking to consolidate this month from 17 TLs to 1.)
- Current Rent - $2300 (does not report to CRAs but 100% perfect rental history 4 years)
- Employment (for those who are employed).
- Type of employment: Full Time in the career field of degree
- How long 4 Yrs at this company for me, 1.5 yrs for DH at current company &15 yrs total in industry
- Assets/Reserves.
- $35k in 401k for me, $5k in 401k for DH
- $10k bank
- $12k pending deposit
- preferably looking at $10-20k down payment
- Location: North Houston, TX (Harris county)
- Property Description:
- Single Family Home
- Property Value.
- ~200-330k
- Occupancy.
- Primary residence
- 7 occupants (2 adults, 5 children) *Spouse will likely not be included on mortgage, though he will live in the home. TX is a Community Property state.
- Transaction Type. Purchase
@VALoanMaster wrote:
Hello fellow Texan,
Based on the number is you provided, your debt ratios could end up being close.
It's going to depend on several things.
1) How much are your minimum monthly payments on all of your credit cards? Will be $25 after this month, when all balances are paid down to zero except 1 that will be at 8%.
2) Will your child support continue for at least 3 years? No, only 2.5 years remaining
3) Property taxes in Houston can be pretty high. I estimated taxes to be $550 per month. 3.2% property tax in my area
4) Will you need flood insurance where you're buying? No, even in Hurricane Harvey our area did not flood
5) The biggest factor in whether or not we make this work with just your income is whether or not we get you approved through an Automated Underwriting System (AUS) & if so at what debt to income ratio. If we have to do a manual underwrite, your maximum debt to income ratio will be capped around 43-45%.
The best thing to do is apply for a pre-approval.
Thank you for your response! I'm going to answer above, in highlights.
Thank you! 330k is our highest possible threshold based on what I think would be in a comfortable range for monthly payments. Realistically, $265k is more likely, just based on DTI on my income alone. I've seen houses in our area of interest from $250-315k that I like, so there is a solid selection. The lower range, 200k, would be doable if we absolutely didn't want to wait whatsoever, but there are houses in that price range where we are.