Mortgage/credit score issue?

Question

My husband's credit score is hovering right below 700. We are ready to buy a house. I am wondering what type of rate we could get. His credit looks very good, no negative info, just not a lengthy credit history. His score keeps going up every month or so. Any one have any insight?

We want 100% financing. Income about 65000/yr. Not using my credit or income (18000/yr) CC debt 4000. I vehicle loan will be pd in less than a yr and another is new with about 10000 remaining. He's had a credit history 6 years.

the house we are maybe intereste din is listed for 159,9

Answer 1

Assuming that you can go full doc (which means that you can provide paystubs, w-2s, etc), you can probably get interest rates from mid-high 6%. The 6 yr of credit history is long enough as long as he has at least 3 tradelines opened.

To qualify using only your husband's income, the lenders are going to look at your ratios. What this means, is that the lenders will look at his $5416/mo income and only want to see a certain % going out to cover your housing expense (mortgage payment, taxes, insurance, MI- aka PITI) and a higher % for PITI + revolving debts (credit cards, car payments, etc). FHA lenders will allow 28% of your monthly income for your DTI (debt-to-income ratio) and 36% for your "bottom DTI", which is all your expenses added together. So looking at $5416/mo - FHA wouldn't want you to spend more than $1516.48 (28%) for your housing & $1949.76 (36%) for all expenses.

With a purchase price of $159,900, and using an interest rate of 6.75% - calcualting your monthly mortgage payment would be $1037.11. Then adding the estimated hazard insurance ($53.30) + Taxes ($166.56) + Mortgage Insurance or MI ($127.92).. this would make your total housing expenses $1384.89. Divide this figure by your monthly income ($5416) give you a a "top DTI ratio" of 26%.. well within FHA guidelines.

You didn't mention the dollar amount that your car payment is, so as long as all your other debts (car payment, credit cards, student loans, etc) DO NOT exceed $564/mo.. you should be able to qualify only using your husbands income.

I know this is a lot of numbers that are being thrown at you, so if you have any questions you can get back to me. But roughly, based on the information that you provided - it looks like you and your husband are in a good position to be able to buy this home.

Answer 2

You don't give us enough information to tell you even a ballpark for what rate you might get. There are many factors that affect the rate.

What is the price of the home you are looking at?
What is your downpayment?
What is your income?
Is it a joint mortgage? If so, what is your credit score?
What other financial obligations do you have?
How much is the home worth?

All of these items will affect the payment and interest rate.

Let's assume for a moment that you will be on the mortgage and that your credit rating is higher than your husband's, that the home you want is affordable for you and that you are putting 20% down and that it won't be a 'jumbo' loan. Then I would guess a rate in the low 6% range would be possible.

Answer 3

To many variables here. What kind of money are you putting down? Any? 20%? Hard to quote a rate without knowing this info. If you are looking at 95% of the purchase price (5% downpayment plus closing costs) most likely you will be in the low to mid 6% range, a good starting place would be 6.5%, but depending on what rates do and how much money you put down it could be less. If you are doing 100% financing, it would most likely be higher, say mid to upper 7% range.

Congradulations to your husband for not having any negative credit, keep in mind however, that his lack of credit history could also have some effect on the rate also!

Good luck and happy hunting!!!

Answer 4

In this current market there are no more "cookie cutter" answers that apply to everyone: each person must have a custom-fit mortgage quote in order to get information that's even close to accurate.

I'd really suggest that you guys talk to a good, honest mortgage broker. Ask your friends and family who they used to find someone reputable and set up a meeting. There are a lot of places that won't charge an application fee - worst case is they may charge you $20-50 to pull your credit.

There are way too many pieces of information missing to give you an accurate answer. Meet with a broker, fill out an application, and have them help you explore your options.

There are still many programs that offer 100% and a good broker will help find the one that fits you best. Good luck!

Answer 5

Just like a doctor, get a second opinion!

I would suggest you contact a local mortgage broker and the bank where you do your checking/savings and be sure to tell them you are "shopping"mortgage loans and have them run your scenario and see who has the best deal. GET IT IN WRITING - make them give you Good Faith Estimates and compare the fees/pricing.

If you can put even 5% down, your rate will be better.

I am a mortgage broker in Los Angeles, but I do loans nationwide if you would like to discuss this further. My emal address is [e-mail].

Sincerely,

Melissa Curtis
Mortgage Broker

Answer 6

Well depends on how much you're putting down.
You can have a FHA mortgage 97.75% loan to value (means putting 2.25% down)....with rates at 6.75% or lower.
You can have 100% Loan to value with rates lower than 7% as well.

If you put 5% down...your rates will be 6.125 or 6.25%

This is for 30yr fixed mortgages going Full Documentation.

Some lenders may require 2yrs of credit with at least 3tradelines. A tradeline can be auto loan, student loan, credit cards, etc.

Answer 7

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Answer 8

his score is good but you need to take income,down payment and his debt to income ratio in consideration for exact rate you can get