Showing results for 
Search instead for 
Did you mean: 

New Home Purchase - VA Loan w/NFCU

New Contributor

New Home Purchase - VA Loan w/NFCU


My husband and I are FINALLY in a place that we can actually start planning to buy a home in the next 6 months and under.  

That said, I/we could use some advice.  The VA loan will be in his name only.  The thing is that we have about $40k that we are getting in the next 3-days (gift from my grandfather's estate and will have it properly documented) and wanted to know how to use it wisely as my husband does have some outstanding debt that we'd like to pay off. 


We want to get approved for the maximum amount possible just so that we have some wiggle room (doesn't mean that we will go to the max)  Does anyone have any suggestions on what would help him/us out the most?



Best Buy: $1250 / $3k Limit

Min Payment: $28 (no interest until 6/2020)


Citi Card: $4801 / $14k limit
Min Payment: $119


Car Loan: $8,8972
Min Payment: $244.80


Amex: $11,316 / $20k limit
Min Payment $328


Target Master Card: $11,819 / $13k limit

Min Payment $370


Discover Card: $18,112 / $21.5k limt

Min Payment $363


Student Loans: $24,533
Min Payment $95.81


Thought Process:

Our thought process is to save at least $16.5k towards any down payment, extra fees etc that we may need for the phone and then to pay off/down  the following debts:

1. Citi Bank

2. Pay $6316 to Amex = Balance left of $5000 = estimated payment of $150/mth

3. Pay $6819 to Target MasterCard = Balance left of $5000 = estimated payment of $162.5

4. Pay $4112 to Discover = Balance left of $14k = estimated payment of $270

Total Debt Payments = $951.50


My husbands income monthly is $4663.96 which $951.50/4663.96 = 20.401% DTI


Any other suggestions? or advice?


CheckCheck & Monitor (through USAA)
EXP: 704/EQ: 710/TU: 691

myFico (pulled 2/28/16)
EXP: 680/EQ: 680/TU: 655

Bankruptcy discharged 9/2014
Message 1 of 2
Community Leader
Super Contributor

Re: New Home Purchase - VA Loan w/NFCU

Hi there


If it were me, I would use that wonderful gift to pay off Target & Discover, and pay $10K to AmX, and SD those cards until after closing. Those cards are near maxed out and have humongous min pymts, which probably have high APRs too. Lenders love CCs with $0 balances and every CC DH possesses has a balance and very high UT. 


Since DH is VA, no DP is needed and VA allows for Seller closing costs assistance up to 6% of sales price. However, if you need some extra cash from $40K, then at least think about paying those 3 card balances down to <8.9%. 


Now we need some datapoints:


Any negatives on CRs

FICO misdle mortgage score



DEC 2019: EX 816, TU 820, EQ 810
DEC 2018: EX 777, TU 783, EQ 799

|| NFCU CashRewards $30K || AmX Cash Magnet $30K || Discover IT $24.7K || Macy's $20K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 2 of 2
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.