Wannabe First-time Homebuyers, Recently Completed Debt Management Program

As far as your credit scores go, lenders will typically use the lower score between a borrower and a co-borrower for the loan decision. The only way to improve your credit scores is by continuing with a good history of on time payments and paying down existing debt load, including those student loans, I would not go adding any credit accounts. Something you need to take into consideration is your debt to income ratio or, DTI. Sounds like yours would be rather high with all that student loan debt. An acceptable DTI ratio is between 30% and 50% when all debt, including your new mortgage, is factored in. Higher than that will cause you problems because that means your abillity to repay based on your existing income is considered risky. Spend the next 8-12 months paying down that student loan debt then apply for your loan.

Here's the simple answer. You need to meet with a local Mortgage Banker/Broker to find out how much you qualify for. You also need to develop a plan to raise your husband's score to at least a 640 to participate in loan programs from the best (lowest rate) lenders. The fact that you have just completed a debt management program, is similar to completing a Chapter 13 Bankruptcy... As long as you have made payments in accordance with the plan, FHA likely will not see this as a bad thing. Your meeting with the Mortgage Banker/Broker will help you develop a strategy to make you loan ready as soon as possible. I'd love to help you, but a not licensed in TN, sorry. There are more like me out there, so give it a shot, and good luck ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com ~ 888-889-9950

Congratulations, on completing your Debt Management Program let's qualify you for the maximum loan amount you are likely to be in $300K and would leave the other paycheck to provide for security and building savings. If your spouse needs to be on the loan we have a minimum score of 640 so we would need to wait for her score to rise not much can be done except wait. I'm Brian and I can be reached toll free 888-354-3299 or e-mail ballen@accessnational.com for further discussion.

The banks will go by the middle lowest score of the two of you. If your wife's score is 630 you will not get the best rate out there but you will still get a good rate. She just needs to keep making payments on time and if there is anything that is on her credit that she can pay down that will help and get all three credit reports for free from and make sure that there are no collections or judgments on them and if there is pay them or have a credit repair specialists have them removed. How many open and active trade lines does your wife have? The lenders look for three open and active. To know how much you can qualify for we would need to know all your and your wife's monthly debts that report to your credit reports.

The online credit places are not your best source , not always accurate. When was your debt settlement finished?? A lot of lenders look toward that has a negative, out of control , so be prepared to write a pretty, from the heart letter. She needs to get a card in her name, forget what credit karma states, its not the truth, in order for her to raise her score, there needs to be activity on her account.. email me at lindaforloans@live.com and I can give you a lot more advice, than this space that i am typing in linda