Posted on: 15th Apr, 2010 08:56 pm
Me and my girlfriend are looking at buying a house. however my credit is sub-par, but hers is great. currently im at 560+ and hers is 700+, we could get a loan for her only, but her MAX approval would be 90k with FHA, I however do not qualify for FHA. Her debit to income ratio is too high because she has a car payment. She pulls in roughly 29k per year, and I pull in about 35k. I however dont have any debts, i've started to rebuild my credit and dont have any loans out so my debit to income is non existent. My last negative remark on my credit was 2 years ago. Is there any other options that we can explore without the a good interest rate. We would be first time home buyers and are both mid-20's. Were located in Ohio.
With a credit score of 560, it would be difficult for you to get a FHA loan. You would require a score of 620 in order to qualify for it. It is good that you are taking steps to improve your credit score. You should try and increase your credit score to 620 and then look out for FHA loans. However, your girlfriend can arrange for a cosigner, then she would be able to get a loan.
well she can get pre-qualified for up to 90k, if she gets a co-signer with good credit and low income/debit ratio, would they still cap out at 50% of her income or would they go off of the co-signers income?
Also all i have is a credit card, should i try to secure a small car loan or something to help build my credit? because the only open lines of credit i have are the credit card and my student loan, which I only owe 300 dollars. so that about three month's of payment left.
Also all i have is a credit card, should i try to secure a small car loan or something to help build my credit? because the only open lines of credit i have are the credit card and my student loan, which I only owe 300 dollars. so that about three month's of payment left.
Were thinking of buying a home in the 75k range and living in it now, and eventually turning it into a rental property, by the time we are ready to make a move and buy a house once my credit improves.