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Credit Score vs DTI

Posted on: 12th Aug, 2008 09:18 pm
My wife and I both have a poor credit score. She has a slightly better credit score than me at around 600+ while mine is -600. However my income much higher than hers. She only makes around $17,000/yr but I make $50,000/yr. While our credit is bad, we have a very low DTI. With a Car Payment of $500 and my Student Loans at $222 our DTI is only 12%.

My first question is this. Which of us should become the primary borrower with the other the co-borrower? Also if anyone here has knowledge on VA Home Loan Guarantee, both my wife and I being Veterans have qualified and received our Certificate of Eligibility. I also receive other benefits by being a Disabled Vet. Would this help with being approved for a loan?

If anyone could give some advice on this and/or lead us in the right direction I would greatly appreciate it.

Thanks
Hi jdbellmon,

I agree with you in the sense that it's not easy finding out which credit repair company is a good enough to deal with. That's the reason I think it's better to take a lender's advice when it comes to repairing your credit, though at this stage when you have unpaid bills, I doubt whether a lender would like to sign a deal with you until you pay off at least a few of the unpaid bills. So, yes if you can find out if it's a legitimate company, then you can avail their services. You can check some of their client testimonials or even google with the company name and find out if there are any complaints against it.

Thanks
Posted on: 23rd Aug, 2008 03:20 am
Under FHA they don't require you to pay off collections, however you should definately follow George's advise so that you can booster your credit score.
The first being the student loans. If they are federal student loans, VA and FHA both want them to be in good standing.
Medical collections can be explained.
Depending on how long your medical collections and other collections have been outstanding, you might be able to work out a payment deal with the creditor.
Don't be hesitant about calling them and asking for a lower interest rate on credit cards, and settling the collections at a lesser balance than owed.
Collection companies are attempting to collect a debt, they are authorized to negotiate.
The worst they can say is no and you are no worse off than you started, but then again they can also agree to a lower payment.
Posted on: 01st Oct, 2008 04:57 pm
i have a question im applying for a va loan have low credit score but paid off all collections and deliquent accounts i have had no late payments in over 2 years have a great explanation letter what is the chances i will get a mortgage
Posted on: 17th Oct, 2008 12:31 pm
Hi susie83185

I hope we answered your question in the other thread.

thanks
Robert
Posted on: 20th Oct, 2008 06:20 pm
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