Home Buying in 75052>Question Details

Dana_in_flor…, Home Buyer in 85353

40,000 in debt. Earn 46,000 yr. No money for DP. 680 CS. Can I get a loan as a FTHB? I live in Northeast FL. (I pay $869 rent for past 5 yrs.)

Asked by Dana_in_florida, 85353 Thu Dec 30, 2010

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Why.... We need to get your debt down first.
My suggestion is either rent below your means and get down that debt or up your income some with a weekend or holiday job to knock it out.
You could probably knock it out in a couple years if you lower your rent.
Then get six months of emergency fund, and save some for a down payment.
Then look at buying, but not before.

Check out Dave Ramsey online or listen to the radio show and or attend Financial Peace University.

Good luck....and best wishes for the best year ever in 2011.
2 votes Thank Flag Link Thu Dec 30, 2010
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Income and credit are fine! No down payment is an issue. Are you planning on getting a tax refund to apply towards a purchase? Also, when you say 40,000 in debt, do you mean one loan or a bunch of little ones? Are you behind in these debts? It sounds to me like you need to consult a mortgage rep. in your area to have a confidential conversation!
http://www.rochesterhomelocator.com
1 vote Thank Flag Link Thu Dec 30, 2010
Joseph is correct. There is not a bank in the world right now that would lend money with no money down.

That being said, as a first time home buyer, you might qualify under FHA financing criteria depending on the price of the home. FHA allows down payments to be gifted, so if you could come up with 3.5% downpayment, then you probably could with your credit score.

When debt is being considered, they consider your minimum monthly payments on items that show up on your credit report only. (Cell phone, electricity, water, cable, etc. does not count). If you would like more information on financing, I have a great loan officer that I use that I would be happy to refer you to.

If you have any questions, please feel free to call or email me anytime.

Brian Rayl, REALTOR®, e-PRO
Keller Williams Elite Dallas Park Cities
972-949-4222
Brian@Rayl-Estate.com
http://www.BrianRayl.com
Web Reference: http://brianrayl.com
1 vote Thank Flag Link Thu Dec 30, 2010
First-time homebuyers are at an advantage in certain cities around Dallas, because down-payment assistance is available. Your income seems to qualify you for more than one of these programs.

Your debt load is pretty high, and probably it costs you over $300 a month to service it. This amount will reduce the maximum loan you're eligible for significantly. Whereas without any debt you might qualify for up to $150k, with the debt the maximum is likely around $90 to 100k. You will need to sit down with a loan officer to go over your finances first.

Pick a lender around Dallas that you can go back to after you find something. Loan officers in other areas may be able to get you a loan, but they are not familiar with our tax structure or insurance rates, which are part of the monthly payment normally. This can lead to underestimating your monthly payment by a significant amount.

Besides, it is possible to find two types of loans that don't require a down payment, depending on your background and where the house is located. Your score seems high enough, but the number is not the whole story. Also we don't know if that's your highest score, lowest or the middle score.
Web Reference: http://www.SumnerRealty.com
0 votes Thank Flag Link Fri Dec 31, 2010
Amount you owe what you earn will most likely be declined

However best always confer with mortgage broker to confirm your thoughts.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Thu Dec 30, 2010
Why.... We need to get your debt down first.
My suggestion is either rent below your means and get down that debt or up your income some with a weekend or holiday job to knock it out.
You could probably knock it out in a couple years if you lower your rent.
Then get six months of emergency fund, and save some for a down payment.
Then look at buying, but not before.

Check out Dave Ramsey online or listen to the radio show and or attend Financial Peace University.

Good luck....and best wishes for the best year ever in 2011.
0 votes Thank Flag Link Thu Dec 30, 2010
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
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