Want to buy a home, question about DTI and credit history

[scvbd99]

I make $46-$49K/year, and am single.  Employed full time as a public school teacher.  

Just opened the cards you see in my signature in the past month, and they're all my first revolving lines of credit....and I plan on keeping my over utilization rate for all of them under 5%, with zero balances on most of them.  

My FICO scores are also listed in my signature.  

I'm a veteran, and am elibige for a VA guaranteed home loan.  

One of my big problems is that I have $90K in student loans.  I am currently making payments because I qualify for something called IBR which makes my payments only $325/month, and that won't change unless I somehow start making $90K/year, which is pretty unlikey.  

I'm wondering  how my limited revolving credit history and student loan situation will factor in at all when/if I apply for a home loan.  Thanks.  I'm a real noob at talking about home buying.  

[BrianB_The_Loan_Professor]

Have you had other credit - car payments etc that are either active or inactive and reporting positive? 

How long have you been paying on the student loans?

The student loan payment will be factored into the debt ratios - the total owed will not count against you

Having new credit if that is all you have may be an issue - they look for a track record of positive credit- The history should go back a couple of years

If you have older tradelines that is fine - 

Scores look fine for VA - 

VA is a great program - No down Payment - no monthly MIP

Thanks for your service - and for teaching - it is truly an under appreciated profession

Good Luck

Brian

[scvbd99]

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@BrianB_The_Loan_Professor wrote:

Have you had other credit - car payments etc that are either active or inactive and reporting positive? 

How long have you been paying on the student loans?

The student loan payment will be factored into the debt ratios - the total owed will not count against you

Having new credit if that is all you have may be an issue - they look for a track record of positive credit- The history should go back a couple of years

If you have older tradelines that is fine - 

Scores look fine for VA - 

VA is a great program - No down Payment - no monthly MIP

Thanks for your service - and for teaching - it is truly an under appreciated profession

Good Luck

Brian

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Thank you for the reply.

I only have 4 older tradelines showing that are older than the new cards in my sig ; unfortunately, they report as 120+ lates thanks to my stupidity on all of my student loans back in 2010.  I haven't had a late payment since Dec 2010, but those ugly baddies still show up on my reports.  I rehabbed all of my defaulted student loans at the end of 2013, so the collection agencies in control of them from 2011-2013 deleted tose tradelines when I finished the rehab.  

I'm glad to know that my total student loan debt owed is less important than my payments, which as I said, are under $350.

Based on your comments, I'm probably a couple of years away from trying to get a house, and I'll be working to make sure to keep my credit utilization low, and all payments on time.  

Thanks again.  

[BrianB_The_Loan_Professor]

It is a long shot but you may get an automated approval sooner - If you wait until you have had the accounts a few more months (say 6 total) it may work

I have seen some crazy things get approved

In your case it will show history from the other accounts  

even though negative it isnt like you are just starting out with credit - so the automated system, after reviewing your whole file may issue you an approval?

If not it will tell you why and you will know for sure what they are expecting before you will get approved

Good Luck

B

[scvbd99]

My credit scores have gone up significantly since I posted this (they were all in the 650s before).  I'm wondering if my odds will increase now of getting approved for a home loan.