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Jonzillah · Joined: 24 Feb 2010 Posts: 4 1.96 Dollars($)

Hello everyone,
First let me say that is forum has a wealth of information and a great community behind it!

Here is my question(s)
I'm looking to purchase a home within the next 6-8 months. I have a salary of just under 80k and a credit score of 635 that I am currently working diligent in improving. The area I am looking in very expensive DC metro area.

I would like to use a VA loan that I shouldn't have a problem qualifying for. Now here's the dilemma when using a multitude of mortgage calculators I get different results on every one of them, even using rules of thumbs (3.5-5x your gross salary). Now I am getting married in about a year and my fiance's income(25K) will really help getting the price that we can afford 350-357k. We have money saved for closing and VA upfront costs without putting anything down. Through the VA they can't use non spouse's income which I believe I need to get the place we want.

Since our area is not affected by the economy as many others, will lenders look at her salary too? It is generally accepted that people just go more into debt then the rest of the country since the cost of living is high here. We only have a car payment (about 10k left) the other vehicle is paid for, both vehicles are under my name. Her credit score is just over 600 and again we are working to improve both our scores. We don't have any other debt then the one car payment that we have been good on for a few months.

Is it possible to get her income included in what I can afford?

I don't want to wait on the housing market and miss a chance since the market is hot right now with foreclosures and short sales. We don't need to rush either since our landlords are good friends of ours.

We can easily make payment with a 375k house, but how can I convey that to my lenders? Sadly 250k will get you a hole in the wall here unless you can find a gem of a foreclosure.

I'd like to get some opinions on the community here before going into a high pressure Realtor land.

Thanks in advance.

tfaulhaber1 · Posted: Wed Feb 24, 2010 6:01 am Post subject:

VA doesn't allow non-spouse income. Your options are waiting until you get married or taking out an FHA loan. FHA will allow you to use your fiance's income for qualifying purposes but, they require 3.5% down on purchase transactions. They do allow for a 3% sellers concession (which will offset the costs you were planning to pay at closing). Also, you can qualify with your current credit scores but, the way the industry is moving; I'd suggest to continue working on your credit until you're both at the 620-640 mark.

Jonzillah · Joined: 24 Feb 2010 Posts: 4 1.96 Dollars($)

Thanks Theo,
To reiterate, what would be a ballpark figure what I could afford on my salary alone (80K) if my credit score was 660 (that is my goal before actually starting to house shop).

tfaulhaber1 · Posted: Wed Feb 24, 2010 6:09 am Post subject:

Do you have an estimate of the property taxes in the area you're looking in? How much do you pay for your car (monthly)?

Jonzillah · Joined: 24 Feb 2010 Posts: 4 1.96 Dollars($)

$350 for car, taxes are high end of 3000 (some towns low 4k). Honestly if we wait just under a year we can move funds and pay off the car before sitting down with a mortgage professional. I like having $$ in savings versus credit as a security blanket, another reason why the VA loan looks appetizing for us.

Guest

What was his final answer to this

Guest

What was his final answer to this

tfaulhaber1 · Posted: Thu Aug 05, 2010 11:33 am Post subject:

With a combined income of $105K and only a car payment. You could get approved for the $375K.

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