Financing in 18353>Question Details

Lorena, Home Buyer in Saylorsburg, PA

GREAT home, GREAT price, SHORT SALE, and HIGH TAXES? NEED help!!!

Asked by Lorena, Saylorsburg, PA Sat Sep 17, 2011

My husband and I combined have a combined income of $115,000.00. Our credit score is between 650 to 730. Our current debt is a car loan, I would say we still owe about $18,000.00 we have several Credit cards with a balance of $ 0, and we only have 1 credit card with a balance of about a little over 5,000. Which we pay off on time every month, we have no loans.
We are seeking to purchase a home in Poconos, PA. We currently live & work in NYC. We have 2 children 16 years old and 3 years old. We are seeking to buy, and relocate by mid April, the latest June of 2012. (We rent in a 2 bedroom apt. in NYC)
I would like just some pointers and scratch some of your heads with this scenario:
My husband is a Veteran so please keep in mind that we are applying for a VA LOAN:
Property Type: Single Family
Style: Traditional
Price: $213,911

Bedrooms: 4
Baths: 2 Full Baths, 1 Half Bath
Sqft: 4,453


Taxes: $9,700

The house is a short sale, my question is what is the proces

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$115k/year of income should be fine to qualify for the $214k sales price with $9.7k/year of property taxes, even if your car payment is $2k/mo (which I doubt it is) - the payment on the mortgage should be in the ballpark of $1,950/month (assuming $1,200/year of homeowners insurance).

650 or 730 scores will easily meet any lender's minimum score requirements for a VA mortgage, but 650 score indicates some negatives on credit whereas a 730 score usually does not, so what negatives are bringing the scores down to a 650 level would need to be discussed.

NYC to Saylorsburg, PA (or anywhere in the Poconos region - Stroudsburg, etc.) typically won't be considered commuting distance, so you'll need to address the reason that you would be able to live in the home as your primary residence ... are you relocating for employment? Retiring? VA mortgages are only for primary residences, and require you to occupy the property as your primary residence within a "reasonable period of time" (which is defined as 60 days). VA does permit occupancy within 12 months of retirement, so if that is the case, then the income that will be effective upon retirement will need to be evaluated, and if found insufficient, then additional income would be needed.

Because your financing appears it's more involved than the typical situation, I feel you'll really want to nail down that aspect first. Since it's a short sale, it may take a little while for your offer to be accepted since it has to go through the seller's bank for the short sale approval, but I am not sure if you'd be able to stretch it out until early next Spring.

What is the situation with employment going to be in PA?
1 vote Thank Flag Link Sat Sep 17, 2011
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