Inquiring for my parents
My mom has a 807 credit score; my dad a 793. Their debt is:
$250/month car payment (less than 8 payments left- the mortgage guy said to pay 2 more payments, it was 10 payments until payoff)
$490/month mortgage for rental house (rent=$600; never claimed on their taxes; they didn't realize they had to because it was a "wash", therefore mortgage is assessed as debt)
$500/month Discover card (they charge it during the month and pay it off the following month, every month)
$1104 social security (dad)
$304 social security (mom)
$45,000 annual salary
BofA said no-- too high DTI
Went to a mortgage broker who put it through the VA pre-approval process and got an approval. Said debt to income was 51% but the recommendations were to "ignore the ratios, lend on credit score".
All the paperwork is in, waiting for a VA appraisal.
Purchase price of home including VA funding fee (used for the second time): $243K
The mortgage guy says he really doesn't see an issue and is 95% sure it will go through.
What are the experts opinions here?
We were exploring another option to get that DTI down: selling that other house at a $10K loss to one of those "we pay cash for houses" places. Would that help this?
Any insight, help, advice, etc. would be welcomed!
They want this house very badly-- nothing else out there like this one!
I forgot to add the payment, taxes, etc on the house they are hoping to purchase
Price of home $234,900
Yearly property taxes: $5,800
Va funding fee $7,800
those taxes are rough!
i just bought a house for $295k (tax ass was $320k) and I pay $1,614 in tax per year!!!
I know! It makes me want to cry thinking about paying nearly $500 in property taxes per month!!!
I would love those taxes. Here in Nj we are looking at houses in the $250,000 range and taxes are at or above $10,000. One house we really like is $250,000. and has $11860. taxes. It is crazy.