I've been lurking on this board for a while, and could not find anything on this topic, so if its a repeat I apologize in advance. I am in the not so unusual situation of having a decent income, but high student loan debt (law school and undergrad loans of approx $120,000). My wife and I both have credit scores on all bureaus which hover between 630 and 660. Our household income is $77,000 in salary and $15,000 in self employment (all of the income is mine). I will receive minimum yearly salary increases of $10,000. We also have car loans of about $800 per month. When I apply I will have no other debt than that stated above. I am looking for a mortgage with preferably no out of pocket costs, but could scrape something together if needed ($10k at most but would prefer much less). Is this a possibility? Can I get approved with this kind of ratio? Could I get approved on any product? Like many here it appears the struggle I am having is with "jumping in". Should I, and if so, where should I look? With this kind of ratio I presume I would be better off going with a lender with a wider spectrum of options..... I would like a loan of $350,000 or so, but would take what I can get. Any help would be appreciated.
Depends where you want to buy and to a large extent, personal information you haven't disclosed. (Like are your loans in deferment, how long you've been with your current employer, how long you've been taking income from your side business, other assets you may have.. the list goes on) Best bet is to talk to 3 mortgage brokers and see what programs they have available for a person in your particular circumstance. Gary
Your Debt to Income looks good for the amount of the mortgage you want. Maybe a little high but close. In general terms, housing expenses(loan principle and interest, insurance, property taxes, etc) should not exceed 28% of total gross income, while total expenses (housing expenses plus all other obligations) should not exceed 36% of gross income. Can employment history be documented for at least the last two years?
gtslaw First, welcome to the board. While it may seen that you provided alot of information, you really haven't. How long have you been in your current line of work and how long have you had your self-employment income? Why are your scores where they are? As you can see these and many other questions would need to be answered before I could give you any real direction or advice. If you don't feel comfortable posting your personal information here and you wish to, you can email me off-board and I will be glad to help. fla-tan
FLA-TAN, from reviewing the board I see you have helped quite a few other people with mortgage questions. I have emailed you some additional information. For the rest....My employment can be verified, as can the additional income. The loans are in forbearance until November. I can pay them at that time, or forbear again if it would helpful in getting a mortgage.
It can be done. Given your credit scores and income, there are programs that will do this for you. Having said that, I'll also say that if I were your loan officer, I'd recomend you think carefully first. That's a lot of house for your income, and when those student loans come out of deferment, that's going to be another $1200 a month. But in the end, you're the only one who can decide what payments you're comfortable with.
