Hey PB, it's not really about your debt, but about your monthly obigations (what you pay /month) vs. your income. 120K is a lot of debt, that's for sure. But if you have good income (I can only assume you do if you borrowed 120K, med school?) and your other debts are low you could qualify. A good rule of thumb is that your house payment can be about 30% of your total gross monthly income. Your total monthly debt (including a house payment) can be about 40% of your gross monthly income. If you can run the numbers you will see where you stand. Your credit score is high enough that you should qualify for a loan.
If your loan is owned by fannie mae, fha or freddie mac, you may be eligble for a streamline. To see if the house is owned by fannie mae, visit this website.
If its owned by FHA, you should know that because you paid upfront mortgage insurance and monthly mortgage insurance.
Freddie Mac look up website is https://ww3.freddiemac.com/corporate/
Hope that helps.
If its not any of these 3, you can still refiance if you are willing to put some money into the transaction (kinda like a down payment). If not, you might be able to do a loan modification. For this, contact your lender and only your lender. DO NOT pay a 3rd party to assist.
One kind of loan you will probably have to get is a 203K renovation loan. You will have to have a licensed contractor to list and estimate needed work in order to get the loan approved. Most likely, you will be able to do your own work but an inspector from the mortgage company will be inspecting the work to make sure the loan money is used appropriately. You can to to my website and find a loan officer who knows about these loans. Look for the Legacy Mortgage link.... more
Sounds to me like you more than qualify for a home @ $100,000. You need to call a good bank or mortgage company. The evaluation will be free and only takes minutes. You could contact a realtor in your area to help also. We always can make a recommendation for a mortgage from our experiances. Good Luck!... more