Good morning, Here is my unique situation and I was hoping for some feedback on which would be the best route to take for trying to obtain a mortgage loan. My spouse Fico 700 Mine 610 Household income = $105,000 car pmts = $730 stud loans = $234 Joint CC pmt = currently we pay $100, min is like $30 (11K limit, 1K balance) My CC to help repair my credit is 3K limit, 0 balance (payoff monthly) Personal loan = $140 Rent = $1020 Her credit is clean. Problem is I have 7 chargeoffs, all from 1997 (due to all fall off mid to end of 2004). I have had no problems since the intitial setback. We are looking to buy a house in the fall of 2003, which cost 225K....we will be able to put down a minimum of 10%. I am also eligible for a VA loan, whether or not I could qualify with our info is another thing. Which would be the best route to take. I don't know much about FHA or any others. I appreciate any feedback you all have, pro's and con's. PS - we live in Florida. Thanks
FYI, depending on the type of loan, many if not all mortgage lenders pull all three credit bureaus (EQ, EX, and TU) and want a middle score of 620 or higher to qualify just on credit, but then their are other variables (ie, down payment, debt/income ratio, etc.) I have heard that lenders want all chargeoffs paid, but I do not have all of the mortgage advice, but im sure that fla-tan or other mortgage people will respond and answers all of your questions and correct what information I probably misquoted. Thought i could answer what I knew and bump your topic to the top. (i do not have a mortgage, but am pulling this infomation from what I have heard on Cnet and everyday hearsay in the world, so dont quote me on what i say)
Does your spouse have a job, and is her income sufficient enough to hold a mortgage of $225K ? The thumb rule is that, assuming a 30 year mortgage, one should not get a mortgage more than 4 times the annual salary .... so if your wife earns more than $55K per year, you can get a mortgage on her name only. Should be a cake walk, more or less. If you MUST be included on the mortgage due to income factor, you have a problem, since almost ALL lenders like to see all chargeoffs paid, irrespective of their validity (they may be yours or not, they may run SOL or not ... they don't care; they must be paid, period). Even FHA wants to see the same thing. Since you are planning to buy a house at least 3 months into the future, see if you can come up with higher downpayment in the meantime, so that the 4-year thumb rule can be met if your spouse earns less than $55K per year. [ Disclaimer: I'm not a mortgage professional; I just went through a refi recently, so most of the info I am spouting above is from a mortgage broker. My income tanked 40% from pre Sep-11 levels, so I'm forced to include my wife also on the refi mortgage ]
One other thing to be mindful of is that I believe if you are getting a loan for more than $150,000, they see everything that has EVER been on your report. Meaning the charge offs will fall off your consumer report by the end of the year, but the lender will get a different report ... one that will have them still have them visable. I might be mistaken about this, but I believe that I have heard (from posters and other people) that there is a stipulation for loans greater than $150,000. Somebody correct me if I'm wrong. peace, delilah
Hey, try calling this company http://www.powermortgage.com/fnmatest.htm maybe they have a program that fits you, they only do mortgages in Florida. =)
Chargeoffs are from 1997. I emailed one mortgage broker in Florida and he said "come on in, I can get you a mortgage no problem". So I just assumed I could. I am not sure if the VA will work with me or not, need to check that. I did just find out that FHA won't work, as the loan limits are not high enough. We will need to borrow probably 180-190K after we pay closing costs and put our money down. Wife makes 50K, so if the 4X thing is true, that may be an option to look into (me not being on it). Thanks all
You should ask "fla-tan" this question. He moderates the mortgage forum at www.creditboards.com. I suspect that your wife's credit can be used while supplemented by your income.
I spoke to a guy at the powermortgage website. He said we had all kinds of options. We could do it in her name only with me on the title, a no income verification loan, or a program that allows both to be on with our incomes that would not require me to pay the chargebacks off (apr be a little higher obviously). Atleast there are options. Thanks again.
Re: Re: best mortgage loan for this situati Sure anytime....he is a very helpful person, and listens to problems. =) DON'T FORGET to ASK what are the POINTS you have to pay! How much is the down payment do you have to put? Is it going to be one mortgage or an 80/20?
Re: Re: best mortgage loan for this situati In theory, there is no limit on the size of the loan the VA will insure, but GNMA places a cap of 203K. If you're planning on 10% down, you're really close.
