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If I am not putting my spouse on the loan will they use his debt against me ? he owes back child support and medical bills and has a low score, he's agreed to sign a quitclaim deed or whatever necessary, I do not need to use his income, my credit score ,dti, etc is good enough to qualify by myself.
FHA may pull his credit and they may use his debt or other liabilities in determining your DTI. I'd ask a mortgage broker to be sure as I'm sure they rules vary state by state.
Lending rules change all the time. Have you asked this question in the Mortgages sub-forum (of Real Estate)? There are some people posting there currently working in the mortgage lending industry.
If I am not putting my spouse on the loan will they use his debt against me ? he owes back child support and medical bills and has a low score, he's agreed to sign a quitclaim deed or whatever necessary, I do not need to use his income, my credit score ,dti, etc is good enough to qualify by myself.
One word of advice on a FHA loan: Don't.
The lower down payment (about 3.5%) isn't worth the higher interest rate. Worse, you have to pay PMI - private mortgage insurance - for the life of the loan regardless of how much equity you get in the house. Sure, you can refinance - if you think the prevailing interest rates in the future will be as low as they are today. And be prepared to pay quite a bit in fees when refinance time comes.
Seriously, just save up 5% instead of 3.5% and get a conventional loan. That way, you won't pay PMI once you get to 20% equity.
The lower down payment (about 3.5%) isn't worth the higher interest rate. Worse, you have to pay PMI - private mortgage insurance - for the life of the loan regardless of how much equity you get in the house. Sure, you can refinance - if you think the prevailing interest rates in the future will be as low as they are today. And be prepared to pay quite a bit in fees when refinance time comes.
Seriously, just save up 5% instead of 3.5% and get a conventional loan. That way, you won't pay PMI once you get to 20% equity.
It's mip on fha vs pmi on conv but there are a few reasons people might go that route, the rate aren't always worse, dti, credit score, foreclosure history etc. I too would avoid it as well though
Another question ,, what exactly is the 8000 tax credit I'm not sure I understand completely how it works can I use that for closing? Obviously closing cost won't be 8000 I'm guessing 3 or 4 at most so where does the remaining go? Towards the loan amount ? I haven't ask the morgage company yet bc I wanted to go in knowing my details before hand. And how long will it take to close on a fha 30? If I have all my paperwork ready ...
Oh and if they were to use his debt , I have 2 jobs one for 7 years which I will be using for the loan and the other is just part time (weekend) but it's another 800 a month,, won't be able to use it on my dti though right bc Iv only been at that one fir 1 year so 1 w2,, but if they count his debt against me than they could count that other income to cancel each other out?
Another question ,, what exactly is the 8000 tax credit I'm not sure I understand completely how it works can I use that for closing? Obviously closing cost won't be 8000 I'm guessing 3 or 4 at most so where does the remaining go? Towards the loan amount ? I haven't ask the morgage company yet bc I wanted to go in knowing my details before hand. And how long will it take to close on a fha 30? If I have all my paperwork ready ...
Closing costs are easily over $8000. I was looking at a home under $75K and the closing costs were over $9000.
Loan origination fee $1200 to $1500, plus first years taxes and home insurance plus other closing costs add up quick.
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