Posted on: 19th Jun, 2008 08:48 pm
My husband just (4 months ago) accepted a job offer that was sort of last minute. Puy is better and has great benefits.
Credit score 672
2 credit cards w/ balances totaling $1800
1 personal loan W/ 1800 balance (we do have the money to pay this off NOW though)
2 cars- 1 has 2 years and the other we got 2 months ago due to his truck was eating us up gas wise.
We have not been late on ANYTHING in 2 years and 5 months
Here is our problem, his new job means we have to relocate 2 and a half hours away. He is there living in a camper in an RV park and me and kids are still here till we can buy a house there to move. Owning is cheaper then renting.
We found a house and came to an agreement with seller $91000 they pay closing costs.
BUT we were denied a loan because the new car loan is only 2 months old and i assume his short 4 months on the new job time.
We dont have down payment money. So is there anything we can do?
Living in 2 places has started to put a strain on things and now there is very little saving. This home is the only affordable ( to us) one in a good school districe. I am afraid that if somthing doesnt happen soon we will not be able to get it and be stuck living apart or trying to buy a house that costs more and we are not comfortable doing that.
Any advice would be great.
Oh and i am a stay at home mom so the loan would be in his name only.
Credit score 672
2 credit cards w/ balances totaling $1800
1 personal loan W/ 1800 balance (we do have the money to pay this off NOW though)
2 cars- 1 has 2 years and the other we got 2 months ago due to his truck was eating us up gas wise.
We have not been late on ANYTHING in 2 years and 5 months
Here is our problem, his new job means we have to relocate 2 and a half hours away. He is there living in a camper in an RV park and me and kids are still here till we can buy a house there to move. Owning is cheaper then renting.
We found a house and came to an agreement with seller $91000 they pay closing costs.
BUT we were denied a loan because the new car loan is only 2 months old and i assume his short 4 months on the new job time.
We dont have down payment money. So is there anything we can do?
Living in 2 places has started to put a strain on things and now there is very little saving. This home is the only affordable ( to us) one in a good school districe. I am afraid that if somthing doesnt happen soon we will not be able to get it and be stuck living apart or trying to buy a house that costs more and we are not comfortable doing that.
Any advice would be great.
Oh and i am a stay at home mom so the loan would be in his name only.
Welcome Linda,
It's nice to hear that your husband has got a job with good pay and benefits. His credit score needs a little push upwards so that he can get better rates on the mortgage.
If you don't have the down payment money, then you can take assistance from any non-profit organization such as the AmeriDream. So, down payment won't be a problem. You said you have been denied because of the car loan. Is it making your debt to income ratio higher than the usual mark? try to calculate your debt to income ratio by using the DTI calculator .
Thanks
It's nice to hear that your husband has got a job with good pay and benefits. His credit score needs a little push upwards so that he can get better rates on the mortgage.
If you don't have the down payment money, then you can take assistance from any non-profit organization such as the AmeriDream. So, down payment won't be a problem. You said you have been denied because of the car loan. Is it making your debt to income ratio higher than the usual mark? try to calculate your debt to income ratio by using the DTI calculator .
Thanks
Try FHA if you havent the scores are good enough. The debt to income needs to be in the low 40's. You can use ameridream for down payment but the seller has to contribute the money to ameridream to make this work.
Good Luck
Brian
Good Luck
Brian
With the DTI Calculator do i put in what i think my new mortgage payment will be? Right now i only pay rent.
Welcome Linda.
If you only pay rent then you need to put the amount that you pay as rent on the "Monthly Mortgage or Rent" column to calculate the DTI ratio.
If you only pay rent then you need to put the amount that you pay as rent on the "Monthly Mortgage or Rent" column to calculate the DTI ratio.
Try to avoid the "ameridream" shell game. You might find a "revised" sales agreement for the amount of the charitable "gift" and house might not appraise. It's getting a little late in the calendar year but see if there is any flub grant money still available. Terms vary by district but it's 80% of median income driven, does not affect the seller (i.e., no imputus to increase sales price), and only possible repayment is if you sell/refinance within 5 years.
I did the DTI calculator and it showing 36%. That is w/ everything we pay now on the salary they are paying him now (3200 month), but he will be paid much more soon ( estimated 4500 - 5000 mnth)
We could wait for his pay to raise but by then THIS property will be gone, this propert is PERFECT for us and doesnt cost a fortune. The place we are moving doesnt have alot of options home wise in the right school districts. We have been watching it for months now.
We could wait for his pay to raise but by then THIS property will be gone, this propert is PERFECT for us and doesnt cost a fortune. The place we are moving doesnt have alot of options home wise in the right school districts. We have been watching it for months now.
linda,
from your description, i would think that your situation is reasonable to obtain a new loan. i don't quite get why your having a new car loan for a short period of time would cause you to be declined, but some lenders are strange after all.
i don't know what a "flub" grant as mentioned by the guest is, but there are other methods by which you can obtain down payment money that are legitimate also.
if this property is located in one of the states that has a bond program promoting mortgages, you may very well qualify under their guidelines. enter "mortgage bond" and the state name in a google search and i imagine you'll be able to tell if that state has one. these are generally better rate products than any other offered on the market.
keep plugging. i dont think that you should give up, as i suspect someone somewhere can help you.
when you calculate dti, you don't want to use your current rental payment, you should be using the anticipated loan payment plus what the approximate monthly cost for taxes and insurance are. you'd have mortgage insurance also, but that amount would be difficult to predict.
from your description, i would think that your situation is reasonable to obtain a new loan. i don't quite get why your having a new car loan for a short period of time would cause you to be declined, but some lenders are strange after all.
i don't know what a "flub" grant as mentioned by the guest is, but there are other methods by which you can obtain down payment money that are legitimate also.
if this property is located in one of the states that has a bond program promoting mortgages, you may very well qualify under their guidelines. enter "mortgage bond" and the state name in a google search and i imagine you'll be able to tell if that state has one. these are generally better rate products than any other offered on the market.
keep plugging. i dont think that you should give up, as i suspect someone somewhere can help you.
when you calculate dti, you don't want to use your current rental payment, you should be using the anticipated loan payment plus what the approximate monthly cost for taxes and insurance are. you'd have mortgage insurance also, but that amount would be difficult to predict.
Alright so all our paperwork is now with someone else trying to approve us.
We have some money in the bank that we were going to use to pay off a small loan ($1800) then our only debt would be 2 cars and 2 credit cards, but the Loan officer that denied us told us not to pay it off because it was a line of credit with good history or something like that. But my question is, if she thought our DTI was to high then would it make better sense to pay that bill off OR leave the money in the bank to show we have reserves?
All we have in the bank is about $5000.
Now i am stressed because our agent said we only have till friday to get approval. The new loan person will not have ALL our info until tomorrow. So if it takes longer than what?
Our exact debt as of right now is
credit card 1- $1350 balance
credit card 2- $45 balance
car 1- $334 per month
car 2- $299 per month
And this loan - $1838 balance or $145 per month
We have some money in the bank that we were going to use to pay off a small loan ($1800) then our only debt would be 2 cars and 2 credit cards, but the Loan officer that denied us told us not to pay it off because it was a line of credit with good history or something like that. But my question is, if she thought our DTI was to high then would it make better sense to pay that bill off OR leave the money in the bank to show we have reserves?
All we have in the bank is about $5000.
Now i am stressed because our agent said we only have till friday to get approval. The new loan person will not have ALL our info until tomorrow. So if it takes longer than what?
Our exact debt as of right now is
credit card 1- $1350 balance
credit card 2- $45 balance
car 1- $334 per month
car 2- $299 per month
And this loan - $1838 balance or $145 per month
Not knowing the monthly payments on the cards makes it hae to know what is best. It appears that you will be very close to the DTI limit and if that is the case paying off the debt and eliminating the payment may make a difference. Your LO should be able to advise once they have everything. Just make sure they know that is an option if you are short.
Good Luck
Brian
Good Luck
Brian
Thank you everyone on here, you have all helped so much.
I have asked the same questions else where and never got any real help.
The card min payments are $15 and $40.
We should find out tomorrow if we will just pay everything off. I think what may happed is we will cut the card w/ the high balance in half and pay the off $45 one, then pay off the loan.
So we will be left w/ only the 2 cars and 1 cc w/ 675 bal. that will bring the cc payment down to about $25 or so.
Thank you all again you have really helped to keep me calm in all this stress.
I have asked the same questions else where and never got any real help.
The card min payments are $15 and $40.
We should find out tomorrow if we will just pay everything off. I think what may happed is we will cut the card w/ the high balance in half and pay the off $45 one, then pay off the loan.
So we will be left w/ only the 2 cars and 1 cc w/ 675 bal. that will bring the cc payment down to about $25 or so.
Thank you all again you have really helped to keep me calm in all this stress.
your $45 balance has no impact on your debt ratios whatsoever. as for the credit line that your loan officer told you not to pay off...the advice was partially right. what you do not want to do is to close that account entirely - paying it to zero would not hurt you at all, except that you'd have to use some of your funds to do it. reducing the one credit card payment is useful, and paying your loan also - but did anyone suggest paying that loan down rather than off, so that fewer than 10 payments would be owed? that is usually a good option also.
OK so first with this home buying thing it was wait wait wait. We got tired of waiting on people to tell us what was going on, found out my husband was eligable to get a VA Loan. Then BANG with in 2 days we were approved already. Loan officer said that payment will be ABOUT $630 per month (30 year fixed) no down payment and to bring about $3500 to closing.
Now what? Is that it? I mean i know that we still have to get the appraisal on the home.
Also is mortgage insurance premium included in the closing cost or do i pay that seperate?
That monthly payment seems awfully low considering the first Loan officer said that the payments would be around $830 or so. So what am i missing?
Now what? Is that it? I mean i know that we still have to get the appraisal on the home.
Also is mortgage insurance premium included in the closing cost or do i pay that seperate?
That monthly payment seems awfully low considering the first Loan officer said that the payments would be around $830 or so. So what am i missing?
linda, if you borrow $90000 and your interest rate is 6.5%, for example, for 30 years, the monthly payment to pay the loan itself is about $570. to calculate your total payment, you need to add in the taxes and homeowner's insurance to determine the total payment. obviously i don't know how much those items would be, but if they equal $110 per month, then your loan officer's not far off.