Posted on: 09th Nov, 2009 08:37 pm
We make 140K/yr. Have about 1200/mo in car/credit card and student loan debt. Currently renting a house following sale of our home and a job move to new state. Paying off debt the past 2 years so we do not have much savings, but we also don't have a lot of excess debt either. Likely to have 20-25K for down payment and would like to do conv. loan instead of FHA due to the loan max value. We're looking to buy up to $350K house. Is this possible, or should we wait and pay off remaining CC debt? Credit issues in 06, nothing but perfect payments and payoffs since. FICO tool says that payoff of that debt moves my score up to 720. Is that possible? I have one credit card with 7200 owed (the acct is closed). I have negotiated a 9.9% int rate due to solid pay history (3 years, nothing late). Looking for direction. Thank you for your input!
Hi Susan,
You've mentioned that you want to take a conventional mortgage and not a FHA loan. In that case, you would require a credit score of 720-740. Apart from that, you should also have a stable income to qualify for the loan. If your credit score will reach 720 after you payoff your credit card debt, then you should first pay off the debt and then apply for a loan.
Thanks
You've mentioned that you want to take a conventional mortgage and not a FHA loan. In that case, you would require a credit score of 720-740. Apart from that, you should also have a stable income to qualify for the loan. If your credit score will reach 720 after you payoff your credit card debt, then you should first pay off the debt and then apply for a loan.
Thanks
Hi Susan,
Yes, it will be possible, you can buy up to $350K house. But have need first pay off debt then you can. You contact to FICO and inform him about your credit card score then will help you or advice you.
Good luck
Yes, it will be possible, you can buy up to $350K house. But have need first pay off debt then you can. You contact to FICO and inform him about your credit card score then will help you or advice you.
Good luck
With everything that you have explained above, it seems as if you're more of an FHA candidate as apposed to Conventional. If you are willing to wait to improve the credit score and down payment monies, then you may want to consider Conventional but until then you're FHA all the way. I hope this helps...
i don't quite get the loan max value scenario you mentioned. i suppose some counties will cap you at less than $350K on an fha loan, but of course i don't know the entire country and maximums.
conventional is a viable scenario if you can truly bump your scores that high in that short a period of time. otherwise, i'm with james in saying that fha is your best bet at this point.
conventional is a viable scenario if you can truly bump your scores that high in that short a period of time. otherwise, i'm with james in saying that fha is your best bet at this point.
