Posted on: 26th Mar, 2009 03:46 pm
Well I don't know exactly how this should work so I am going to just make a go at it here and hope I do it correctly. Feel free to critique and ask me for more (or less) information. Basically as it stands I have not talked to a lender/loan officer yet, because I do not want them to convince me that I only have certain options, so I came here first. I am honestly looking for the best loan I can get and have heard that there is state assistance and possible veteran assistance, and do not know where to start.
Here is my info
Looking to by a house for under 150k
I am a retired veteran of 48 making 13k in retirement a year.
My wife and me make a combined total of 80K year with retirement before tax.
I have 2 kids living at home. Nevada.
I have $1,500 total in the bank
My total Debt is 65k with vehicles/credit cards. 47k credit cards.
Monthly bills is $3,900
I just do not know who to talk to about this. I feel as if I am make enough in steady income, but have tons of debt. I read an article online that said I should find my credit score out directly from the three credit bureaus, but do I have to go to each one and pay to find my credit score? Is there a way I can get all three at once for one price. I got my credit report, which did not have my score on it.
Thanks in advance for your help.
Here is my info
Looking to by a house for under 150k
I am a retired veteran of 48 making 13k in retirement a year.
My wife and me make a combined total of 80K year with retirement before tax.
I have 2 kids living at home. Nevada.
I have $1,500 total in the bank
My total Debt is 65k with vehicles/credit cards. 47k credit cards.
Monthly bills is $3,900
I just do not know who to talk to about this. I feel as if I am make enough in steady income, but have tons of debt. I read an article online that said I should find my credit score out directly from the three credit bureaus, but do I have to go to each one and pay to find my credit score? Is there a way I can get all three at once for one price. I got my credit report, which did not have my score on it.
Thanks in advance for your help.
Hi corporatepushover,
Getting a loan will depend upon your credit score and your financial situation. Moreover, you should remember that for conventional loans, debt to income ratio should be 28/36, for FHA it should be 31/43 and for VA loans it should be 41.
The minimum credit score required to get a FHA or VA loan is 620 and for conventional loans it is 720. The three credit bureaus will give you 3 different scores but the lender would consider only your middle score while approving you for the loan. You can visit www.annualcreditreport.com and get a free credit report.
Moreover, when you apply for a loan, your lender will check your credit score and let you know whether you are eligible for a loan or not.
I would suggest you to speak to some of the lenders and check out the rates and terms you may get from them. You can also speak to the lenders of this community and seek a no obligation free mortgage consultation from them. This consultation will also help you know the rates you can expect to get. It will also help you know the present market rates and terms.
Thanks
Getting a loan will depend upon your credit score and your financial situation. Moreover, you should remember that for conventional loans, debt to income ratio should be 28/36, for FHA it should be 31/43 and for VA loans it should be 41.
The minimum credit score required to get a FHA or VA loan is 620 and for conventional loans it is 720. The three credit bureaus will give you 3 different scores but the lender would consider only your middle score while approving you for the loan. You can visit www.annualcreditreport.com and get a free credit report.
Moreover, when you apply for a loan, your lender will check your credit score and let you know whether you are eligible for a loan or not.
I would suggest you to speak to some of the lenders and check out the rates and terms you may get from them. You can also speak to the lenders of this community and seek a no obligation free mortgage consultation from them. This consultation will also help you know the rates you can expect to get. It will also help you know the present market rates and terms.
Thanks
james made a good point - when you speak with a lender, a credit report will be generated, and the loan officer can provide you with your scores. don't bother paying someone else to do that.
i'm confused about your retirement income...you make $13K per year, but you and your wife combined make $80K? so that means she has $67K in retirement income, right?
your financial situation is kind of tight, it looks. you mentioned $47K in credit card debt - that's a whole lot; and $3900 each month is also a mountain of debt - more than 50% of your gross income each month. lenders don't like to see much debt, let alone half of your income.
as a veteran, you can certainly avail yourself of va loans, which allow for 100% financing. however, if you don't find some sort of down payment assistance program to coincide with that, you'd have to have sufficient cash to pay your own closing costs.
maybe i missed something in the translation - is there more information available that makes this look any better? let us know.
i'm confused about your retirement income...you make $13K per year, but you and your wife combined make $80K? so that means she has $67K in retirement income, right?
your financial situation is kind of tight, it looks. you mentioned $47K in credit card debt - that's a whole lot; and $3900 each month is also a mountain of debt - more than 50% of your gross income each month. lenders don't like to see much debt, let alone half of your income.
as a veteran, you can certainly avail yourself of va loans, which allow for 100% financing. however, if you don't find some sort of down payment assistance program to coincide with that, you'd have to have sufficient cash to pay your own closing costs.
maybe i missed something in the translation - is there more information available that makes this look any better? let us know.
My suggestion to you will not only help you in the short term, but will also help you to be debt free (except for your mortgage) sooner than later.
DONT buy a home right now. Send as much as you can to the credit card companies to pay down those credit cards. When your car payments are gone, keep those cars and drive them until they no longer move...then fix them. Once that has happened, then get yourself a home.
If you try to buy the home now while you still have that other debt, you will find that you are making just the minimum payments which will actually result in the accumulation of interest....something you may never recover from.
DONT buy a home right now. Send as much as you can to the credit card companies to pay down those credit cards. When your car payments are gone, keep those cars and drive them until they no longer move...then fix them. Once that has happened, then get yourself a home.
If you try to buy the home now while you still have that other debt, you will find that you are making just the minimum payments which will actually result in the accumulation of interest....something you may never recover from.
good suggestions overall, eric; but i'd amend one of them. i think it might be more beneficial to repair the cars prior to their inability to move. otherwise, these folk might be walking a bit more than they'd like (though it would be beneficial).