High Income, Low Credit Score and Jumbo Loan

[Anonymous]

My husband and I are in rock and hard place. We both have higher incomes and student loan debt but can’t take advantage of the student interest deductions ($400k+ incomes and $250k in student loans - typical of people in our industries). So, we need a house to offset our tax liability and eventually pay down the loans. We are also in our early 30s with extremely demanding careers, so any place will need to be in the city and accommodate us + a kid/2nd kid.

Problem is my husband has a middle score of 729 and my middle score is 630. I maxed out my credit card a few years ago and then, paid it off this past February, and then, maxed it out again this fall due to unforeseen circumstances ($40k). I’m actively paying it, but even if I paid it off slowly (vs paying it off in January) I’m only up to 700 by the time we need to buy based on FICO simulation. Husband has about $18k in credit cards.

We are looking to buy a house that is max $700k and will have 20% down, but we will need a jumbo loan. We have savings (outside of down payment) and 401ks. Our DTI is 29% (and only going to reduce in January when incomes go up by $45k) and can clearly pay for a mortgage that’s is likely $560k max. Anyone have any experience and recommendations for people in this boat?

[homeloanexpert]

There are programs available to accomodate your scores now. Obviously the better the score the better loan program and rate. But fear not, you can get financed.