Hi,
Spouse and I would like to buy our first home this year. My credit score is good enough to get a conventional loan, however my spouse's credit score is below 600 (fico score 2, but his fico score 8 is above 610 for the three credit bureaus). We with our average scores we should be able to apply for an FHA loan, also it being our first home.
however, both of us have student loans in wage garnishment. We have been paying these garnishments at 15% semi monthly through our wages. We are up to date on the payments. We have been paying with no breaks for about 3 years and I am target to payoff the rest in less than 2 years. We receive documentation regularly from ADP stating how much payment will be taken out of our paychecks and it also shows how much balance is left of the loan. The loan is paid to the US Dept of Education.
Including our student loan garnishment payments, our DTI is at 16%, and with the potential mortgage payment (PITI), our DTI will be at 39%. We should be able to put a down payment of 5% and have money for 3% or so for closing costs.
will we be disqualified from getting an FHA loan for this?
Thanks!
Maria
