Teacher applying for a loan
I sold my house back in 2018 and made a $4,500 profit. My current credit scores are 529, 549, and 472 and I am making $63k a year as a teacher. I have $420k in student loans and I am afraid I won’t qualify for a loan. I don’t think the money I made from the sale can be enough for a down payment nowadays. Options? by barnett631 from Maple Springs, New York. Feb 17th 2022
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
I'm sorry, but unfortunately, your low scores and student loans may prevent you from qualifying. FHA loans require a minimum 500 middle score, but even if your loans are in a deferment status, FHA still requires we calculate a minimum monthly payment of 0.5% of the outstanding balance, which on $420,000 would be $2,100 per month. With a Maximum Debt-to-Income (DTI) ratio of 42% for manual underwriting, your maximum debts can only be $2,257 leaving you $157 available for you housing payment.
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
While no lender can officially answer without a full application, I see many problems here with trying to get financing. Credit is a major problem, and $420k in student loans on a $62k income is not going to let you afford much in a house payment. Sorry. I lend in MN WI IA ND SD. Find me at JoeMetzler.com - Cambria Mortgage, NMLS 274132
Ask our community a question.
Get an answer
Related Questions
