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OKay, here is our scenario. My husband owns our home, conventional mortgage, no lates at all, but his FICO score is 660 because we are upside down in the house, he has recently taken a job which pays about 40% less than his previous work and all his balances are high (no late pays though).
I am not on the mortgage at all. I do work, my gross income is 3460, his is 5910, my fico range is 680-695 We want to put this house on the market (can barely survive the payments now) and I want to try for an FHA loan on my own. Once we are in our new home, we would be okay with trying for a short sale on our existing house, which I am told the lender won't even consider unless we have at least a 30 day late on the mortgage. Since his balances are so high and he will be a non-purchasing spouse (Arizona), I know they will consider his debt in my debt to income ratio. Here is where I am confused:
Am I allowed to apply for an FHA even while he is still carrying his conventional mortgage? It will become our primary residence but meanwhile he will still have a mortgage for a while until an eventual short sale goes through.
Will they also consider his income to offset his debt in the debt ratio calculation? Because if not, if they only consider our joint debt against my income, we can forget qualifying.
If anyone out there has some good concrete FHA knowledge for Arizona, please help.
ilseken
you need to review his credit report
being upside down on the house will not affect your score
I suspect it is the high balances that is affecting it, if he is more than 50 %(30% is best) of the credit limits it will affect his score
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They will not allow his income to be calculated into the DTI ratios as a non-purchasing spouse. You are absolutely allowed to apply for an FHA loan while he still carries the conventional, but that house payment will be calculated into the DTI ratio.
Well, his score is so low because he is carrying close to 80-90% of his balances, and so am I. Our scores were around 710 before with low balances. Do lenders even consider qualifying you for a mortgage if you haven't sold your other house? There is now way I could reasonably rent out this house for what our payment is, $2460.
they will consider it if you can afford both mortgages
Quote:
Originally Posted by ilseken
Well, his score is so low because he is carrying close to 80-90% of his balances, and so am I. Our scores were around 710 before with low balances. Do lenders even consider qualifying you for a mortgage if you haven't sold your other house? There is now way I could reasonably rent out this house for what our payment is, $2460.
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