Hi All,
I have been diligently working on my credit scores and have brought them from about a 520 to a 622. My husband and I were pursuing a USDA loan (which we know we need a 640 for), and I have cleared up all collection accounts minus 1. Luckily his collection accounts were strictly medical and nominal. I realize they are hurting his score and we plan to resolve them however. I just spoke with our loan officer at regions and he kind of blew my mind...
The short of it, I decided it was a wonderful idea in my younger years to obtain 3 degrees, all on student loans. Ignorance being what it is.. I am in deference with approximately $200k in student loan debt. (He estimated at 1% it would equate to about 2k per month?) Luckily, I work for a non-profit that will allow me to make my IBR payments (when I enter into them) of $186.00/month for 10 years and have the rest forgiven under the PSL loan forgiveness program. He did try to run the numbers on just my husband's income, but, with the education I obtained, I do earn 2.5x what my husband does... The loan officer said my best bet is to get a mortgage while my loans are in deferment. He didnt expand or explain any of this, just told me that I should hold off while he tries to find some lenders that will "accept a deference letter". I understand next to none of this and do realize I have a huge undertaking with the student loans I racked up (I was the first in my family of over 80 years to attend college, and I loved learning - so with my head in the clouds, I simply kept going back to school....).Please note education does not = intelligence (as you can see by my choices!).
All joking aside - I feel hopeless now of ever owning my own home. Can anyone point me to someone that can explain this? Or something for me to read? Anything? I dont even have a clue where to begin...
These forums have been utterly instrumental in my credit rebuild and empowering me with the hope of being an adult (at 34...) who makes adult-like decisions.
Thanks for your help/advise.
