Help me Qualify Please

[vikash1986]

Credit Score	Transunion	Equifax	Experian	Mortgage Score as per myFico: 607
	604	622	610
Derogatory
Lates (No prior late)	13 Account 30-days 12/17	13 Account 30-days 12/17	13 Account 30-days 12/17
Bankruptcy	Chapter 7 Dis. 08/15	Chapter 7 Dis. 08/15	Chapter 7 Dis. 08/15
Collection	None	None	None
Repo/other Derog.	None	None	None
Debt
Credit Card
	Credit Card Limit	Outstanding Balance	Min. Payment	Utilization
Tower Credit Union	$                           7,200.00	$                           6,900.00	$                              144.00	96%
Digital Credit Union	$                           3,000.00	$                           2,400.00	$                                44.00	80%
CapitalOne QS	$                           2,650.00	$                                      -	$                                      -	0%
CapitalOne QS	$                           1,200.00	$                                      -	$                                      -	0%
CapitalOne Venture	$                           2,000.00	$                           1,800.00	$                                60.00	90%
Merrick Bank	$                           2,000.00	$                              900.00	$                                26.00	45%
PayPal	$                           1,200.00	$                                      -	$                                      -	0%
Credit One	$                           1,450.00	$                                      -	$                                      -	0%
	$                         20,700.00	$                         12,000.00	$                              274.00	58%
Car Loans	Principal Bal.	Remaining Months	Monthly Payment
PenFed	$                         30,988.00	44	$                              752.00
Tower Credit Union	$                         17,300.00	44	$                              480.00
			$                           1,232.00
Student Loans	Principal Bal.	Remaining Months	Monthly Payment
Federal	$                         42,623.00		$                                93.40
Income
Senior A/R Analyst	$                         59,000.00	Source: W2	Master Degree 10yrs Experience working in NYC.
2018 Income	$                         59,000.00	Source: W2	Able to work from home
2017 Income	$                         48,989.00	Source: W2
2016 Income	$                         39,133.00	Source: W2
Property Location	Schenectady County, NY
Property Asking price	$                       139,000.00
Down Payment	$                           7,500.00	Source: 401K
Closing Cost	$                         10,800.00	Source: Personal Savings
Property Tax	$                           4,380.00	Yearly
Homeowners Ins.	$                           1,286.00	Yearly
PMI	$                           1,008.00	Yearly

Based on the above info would I be able to qualify for a mortgage come January 2019. The taxes and listing price is for a property currently in the market but if it is sold by then I will stick to prices around 140k. I work for a Health insurance company in NYC for over 3 years with 10 years experience in the Accounting field. I am allowed to work from home 3 days a week for now but I see myself working full time from home within a year or 2. I currently live rent-free with my in-laws in NYC but I would like to purchase my own home in upstate New York. This is my first time purchasing and this property will be my primary residence for 5 days a week and commuting to NYC to work the 2 days. I was careless with the 30 days late last December but no other late payment prior to that or any other late/derog. I take full responsibility and I hate myself for not doing the right thing. The BK from 2015 was due to carelessness as well. However, I am working hard on fixing my credit and paying down my debt. How would you approach my situation to increase your chances of getting approved? Should I also get a second job before I applied? Any finance company that you guys can recommend or broker would be helpful. Thank you guys so very much in advance for your advice, suggestions, and thoughts.

[NC_Mtg_Loaner]

Pay down those credit cards if you can.

then, maybe look to sell or refinance one of those two auto loans.

Your non-housing debt is 30% of your gross income which seems high.

[vikash1986]

Thank you. My plan is to pay the high interest rate credit card first then pay the remainder of the cards to below 50% utilization. So for the next three months I will try to come up with 6k for credit cards. However my husband is thinking of filing for bk 7 next month and I don’t think I can depend on him for help with refinancing the car loan. The title for tower car loan is free and clear and I was going to have him do the finance but his score is 497. I knew his score were bad but it’s really bad. Any suggestions. Do you guys think with 6k in credit card debt and the 2 loans I will be able to qualify. I can refinance the loan but my rate with capitalone came out to 7.93% for 36 months making the payment 543 per month and I am scare to ad inquiry to my report. Last 2 years have only 1 inquiry from cap1. Thanks again.

[CreditInspired]

Unfortunately, IMHO, you would not be able to qualify. If I did the figures correctly, your monthly gross income is $4,917 and your minimum monthly debt obligation is $1,599. With $556 monthly for property taxes, PMI, HOI, and $706 P&I based on 30-yr FHA fixed at 5%, mortgage payment totals $1,262. Then add your monthly debt, we’re talking a whopping $2,861 expenses per month.

At this moment in time, I think you need about 24 mos to pay down your debt.

GL2U

[vikash1986]

@Creditinspired 

Thank you for your time and input. I did the same calculations and I believed you are on point. At $2861 a month in debt would put me over 50 percent of my income which is why I believed I need to get a second job. However, if it is a W2 part-time job and it's within my field of accounting making another 2k a month gross would it be an issue since it's not 2 years. It might be 3 months on the second job before I put the application through.  Also, I currently owe 12k in outstanding debt and within the next 3 months, I will reduce it to about 6K. Would I still need to wait for another 24 months? I cannot begin to explain how grateful I am to this forum and its extraordinary members and their continued support to people like me. Thank you again for your kind words of wisdom. Thank you.

[CreditInspired]

Hmmmm. Your ratio for the numbers provided is at 58%. The preferred back ratio for a FHA loan is 43% but can be increased to 50% based on two compensating factors, such as verified/documented cash reserves and significant other income. FHA wording, not mine.

Yes, part-time income would have to be for 2 years to qualify as additional income. Of course, getting a PT job now would definitely help in getting balances to $0 w/1 card less than 9%.

Again, IMHO, I think taking 24 months to pay your debt down to less than 43% should be the plan to FHA qualify w/o having to worry about the compensating factors.

Also, this may be hard to digest right now because you want to but a home but in 2 years you can be in a home w/o financially struggling.

GL2U

[vikash1986]

@ CreditInspired 

"Also, this may be hard to digest right now because you want to but a home but in 2 years you can be in a home w/o financially struggling." Now you have me thinking lol. I did not think about it this way and it sure makes a lot of sense, to be honest. The part-time job is definitely an important step even if it does not count as income I am sure it will help to pay down my debt as you said. I will keep you guys posted on my progress and thank you guys again for your help and support. 

Thank you. 

[vikash1986]

Just an update on our progress... Utilization is down to 8% across the board and both loans are paid in Full. The Middle mortage score is 654 as per Wellsfargo and we have been pre-approved for an FHA 15 years at 4.625%. However, we are required to pay 1.895 discount points. I did not like the brokers that we had and decided to give Wellsfargo a shot. Another issue we have is that the seller 16 year old daughter is on the deed and that is delaying the contract signing as she is a minor and they are trying to remove her. Not sure when we will be in contract but out rate is lock for 120 days here in New York. WellsFargo said NY is unique in this way. Is a minor on a deed a common thing?