Help on seeing if I could qualify!

[Anonymous]

Salt Lake City Utah. I have nothing down.

[IQn2D]

Are you a Veteran? Do you have money saved? (401k, Investments, etc)

[VALoanMaster]

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@Anonymous wrote:
Salt Lake City Utah. I have nothing down.

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You'll need at least 3.5% down & based on your debt to income ratios you'll probably be looking at purchase price of 170K +/-.

[Anonymous]

Thanks for you help, its going to be tough, but my outstanding debt is holding me back. My next question is this.....

http://ficoforums.myfico.com/t5/forums/replypage/board-id/loans/message-id/215379#

I have a grand total of 14,428 in credit card debt.....

question is could I get a consolidation loan to clear the balances? I definanly wouldn't be using the cards until the loan was paid off.  My current montly payments to credit cards are...minimums of course. 413 a month. If I was to be approved for the debt consolidation, my montly payments would be $296 at 9% of course I hope to get a better interest rate.  What do you guys think. I need to get my total balances off to atleast 5K to qualify for a 286K home loan in Utah.

[seap74]

I'm sorry, the numbers are just not adding up for you to be able to qualify for a $280K+ mortgage right now. 

First off, you will need to save at the very least a 3.5% down payment.

Next - DTI:

Debt consolidation is really not the answer - that's just moving debt from one place to another. Better to aggresively just tackle getting those paid off or down to a utilization <8.9%. Even if you were to consolidate all your credit cards (I was assuming you were not including your auto loan in this), that breaks down to:

$650 car payment + $296 consolidation loan = $946 = 23% dti

To stay under 45% dti with an income of $4100/month, that only leaves $899 for your mortgage payment. With less than 20% down, your payment would have to include PMI, which with a low credit score is very expensive if you can even qualify, plus add in principal, interest, homeowners insurance, property taxes. No way could you get a house in that price range for $899.

Honestly I think you have some work to do before you consider even applying for a mortgate - get the credit card util to <8.9% preferably AZEO, start saving a down payment of at the very least 3.5% (which at that price range is almost 10K).  By the time you do all this, your credit score would probably be a little higher. Can you rethink that price range? That seems very high for your income.

Also, where did you get your credit score of 640? You will need your 3 mortgage scores, take the middle score. Fico 8 or Vantagescores can vary quite a bit.

Good luck.

[Anonymous]

hello thanks my friend I do have some work to do, I def can reconsider the price. I also got my score from here myfico

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wrote:

I'm sorry, the numbers are just not adding up for you to be able to qualify for a $280K+ mortgage right now. 

First off, you will need to save at the very least a 3.5% down payment.

Next - DTI:

Debt consolidation is really not the answer - that's just moving debt from one place to another. Better to aggresively just tackle getting those paid off or down to a utilization <8.9%. Even if you were to consolidate all your credit cards (I was assuming you were not including your auto loan in this), that breaks down to:

$650 car payment + $296 consolidation loan = $946 = 23% dti

To stay under 45% dti with an income of $4100/month, that only leaves $899 for your mortgage payment. With less than 20% down, your payment would have to include PMI, which with a low credit score is very expensive if you can even qualify, plus add in principal, interest, homeowners insurance, property taxes. No way could you get a house in that price range for $899.

Honestly I think you have some work to do before you consider even applying for a mortgate - get the credit card util to <8.9% preferably AZEO, start saving a down payment of at the very least 3.5% (which at that price range is almost 10K).  By the time you do all this, your credit score would probably be a little higher. Can you rethink that price range? That seems very high for your income.

Also, where did you get your credit score of 640? You will need your 3 mortgage scores, take the middle score. Fico 8 or Vantagescores can vary quite a bit.

Good luck.

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