Posted on: 31st Mar, 2011 02:15 pm
Hi - here is my situation, would appreciate any advice:
- Virginia home valued $700 to $725k
- 1st mortgage = $565k, 6.125% 30year fixed (BOA)
- 2nd LOC = $40k, 9.95% (also BOA)
- Wife lost her job a couple years ago, made mistake of living off credit cards too long... now debt/income ratio over 60%
- Credit score is ~680 (all because of debt levels.. Never missed a payment on anything, etc.)
We're trying to pay down our debts, get things back in order, and if we could save $1000+ a month on mortgage payment, we could pay down debts faster...
Have tried several banks, all turned us down because of credit score/debt levels.
Any advice? Last broker told us that we do not qualify for a "conforming" mortgage because our ratio was too high...
Thanks for any assistance....
- Virginia home valued $700 to $725k
- 1st mortgage = $565k, 6.125% 30year fixed (BOA)
- 2nd LOC = $40k, 9.95% (also BOA)
- Wife lost her job a couple years ago, made mistake of living off credit cards too long... now debt/income ratio over 60%
- Credit score is ~680 (all because of debt levels.. Never missed a payment on anything, etc.)
We're trying to pay down our debts, get things back in order, and if we could save $1000+ a month on mortgage payment, we could pay down debts faster...
Have tried several banks, all turned us down because of credit score/debt levels.
Any advice? Last broker told us that we do not qualify for a "conforming" mortgage because our ratio was too high...
Thanks for any assistance....
Hi mws,
You can check out if you could get a FHA loan as you've a credit score of around 680. FHA loans are available even at a credit score of 620. You should speak to the local FHA lenders and apply for the loan.
Thanks
You can check out if you could get a FHA loan as you've a credit score of around 680. FHA loans are available even at a credit score of 620. You should speak to the local FHA lenders and apply for the loan.
Thanks
FHA lending guidelines won't suit you here either, mws. With a debt ratio of 60%, you're beyond the outer edge of all the automated underwriting, and a 680 score isn't, any longer, a score to write home about. Not that it's bad - it's just that the market has changed dramatically.
That's not to say you can't find a lender; just don't anticipate getting the best of rates, and don't look to the big boys.
If you have a relationship with a credit union or a local, community-type bank, that might just do you some good on this kind of deal. Any lender who will hold your loan in portfolio would be far more likely to accommodate your high debt ratios.
That's not to say you can't find a lender; just don't anticipate getting the best of rates, and don't look to the big boys.
If you have a relationship with a credit union or a local, community-type bank, that might just do you some good on this kind of deal. Any lender who will hold your loan in portfolio would be far more likely to accommodate your high debt ratios.
