what should be a starting point for fico score and income to debt ratio to qualify? great income but rebuilding after a short sale. in the military.

Asked by Rydata3, Corona, CA Sun Apr 13, 2014

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RonS, , Concord, CA
Wed Apr 23, 2014
31% on the front end (31% of your gross income as an allowable debt towards housing expenses) and 43% on the back end (43% of gross income divided by your housing and other credit related expenses (Child support, car payments, credit card payments, etc.. Not gas, food clothing, etc..) is the amount that the industry says they will allow you to go up to (Higher in some circumstances). That may be too high for your confort level, may not but that is the guideline they use to qualify you.

FICO is another story. How low is too low? It all depends. How long ago was your short sale? What is your FICO now (Don't use the fico score from myfico.com or some free credit report, they aren't the same)?
0 votes
Harold Lear, Agent, San Diego, CA
Wed Apr 23, 2014
We have a new loan that is 100% FINANCING, There is NO INCOME VERIFICATION, NO CREDIT VERIFICATION, NO ASSET VERIFICATION. So the Short sale won't matter. This loan is not a bank product, but the payment is equal to a 4.5% rate...Minimum loan amount is $100,000 and no maximum, the loan can be used for commercial or residential. Contact me for more information...858-945-1047
0 votes
Jill BERNI-…, Agent, El Dorado County, CA
Tue Apr 22, 2014
Only you know what you feel comfortable with. Sometimes you can
get an approval for a payment far higher than you want. I find most
buyers who've experienced short sale or foreclosure are very cautious
about overextending themselves. Be realistic about your spending habits
and what your budget really is.
0 votes
good points Jill.
Flag Wed Apr 23, 2014
Sinead McAll…, Agent, Oceanside, CA
Tue Apr 22, 2014
Hi Rydata,
There is some solid advice below. I would be happy to speak with you directly and tell you what you're next steps are . I live and work in 92057, and would be happy to help you make beautiful Oceanside your home!

Thanks!
?Sinead McAllister-Clifford
Real Estate Broker/ RealtorĀ®

McAllister Homes Real Estate
Residential Sales & Property Management
http://www.McAllisterHomes.com
License 01366009
858-205-5215 CELL
0 votes
JR Thrasher, Agent, San Diego, CA
Tue Apr 22, 2014
A lot of lenders will tell you the minimum you need to qualify, but there isn't a lot of value in that other than selling you a loan. Is your debt under control? Do you have a large car payment that is hurting you? As a veteran that specializes in helping veterans not only buy homes, but keep their home once they are in. I don't recommend you even start looking for a home until you:

1. Maintain a FICO score over 640 for at least a year.
2. Do not have unsecured debt (credit cards) that have high balances or that you cannot pay off immediately if you want to.

Just about anyone can buy a house, but good financial discipline is how you need to keep your home.

Feel free to go to my website and read 8 things you need to know before you purchase a home.

J.R. Thrasher
http://www.SanDiegoRealEstateVeterans.com
(619) 929-0105
RealEstate@JRThrasher.com
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