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Need advice- 807 & 793 credit, 51% DTI, VA loan

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New Member

Need advice- 807 & 793 credit, 51% DTI, VA loan

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)

 

Income:

 

$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!

 

TIA!


Starting Score (8/16/10): EQ: 515 TU: 527
Current Score: see above
Goal Score (4/16/11): 675


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Message 1 of 6
5 REPLIES 5
New Member

Re: Need advice- 807 & 793 credit, 51% DTI, VA loan

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

4.5% rate


Starting Score (8/16/10): EQ: 515 TU: 527
Current Score: see above
Goal Score (4/16/11): 675


Take the FICO Fitness Challenge
Message 2 of 6
Contributor

Re: Need advice- 807 & 793 credit, 51% DTI, VA loan

eeeek ....

 

those taxes are rough!

 

i just bought a house for $295k (tax ass was $320k) and I pay $1,614 in tax per year!!!


2/2/09 (Newbie): EQ: 636 -- EX: 609 -- TU: 635
8/9/10 (Current): EQ: 724 -- EX: 728 (FAKO) -- TU: 717
Message 3 of 6
New Member

Re: Need advice- 807 & 793 credit, 51% DTI, VA loan

I know!  It makes me want to cry thinking about paying nearly $500 in property taxes per month!!!


Starting Score (8/16/10): EQ: 515 TU: 527
Current Score: see above
Goal Score (4/16/11): 675


Take the FICO Fitness Challenge
Message 4 of 6
New Visitor

Re: Need advice- 807 & 793 credit, 51% DTI, VA loan

What was the outcome?

Message 5 of 6
New Member

Re: Need advice- 807 & 793 credit, 51% DTI, VA loan

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.

Message 6 of 6
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