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Would I qualify for a home loan?

Debt to income ratio of 38percent

Married couples credit score is 728 and 733

Both persons declared bankruptcy 4 years ago

Annual income is 114k

9 Answers

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  • 1 year ago
    Favorite Answer

    Debt to income 38% before the house payment... NO. Including the house payment, yes. Credit scores are fine - BK 4 years ago is okay for VA, or FHA but not conventional.. need 5 years from date of discharge.

    Source(s): Mortgage lender 32 years.
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  • Eva
    Lv 7
    1 year ago

    Debt to income ratio is a little high, but your credit scores are fairly good. Because you have a declared bankruptcy on your report, you may have trouble finding a mortgage. Your best bet would be to go through a mortgage broker that could shop rates for you. You are likely to get a bit higher interest rate .

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  • kevin
    Lv 6
    1 year ago

    you should be okay, but if you want to be sure talk to a mortgage company and get per-qualified.

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  • nt
    Lv 6
    1 year ago

    Where is all that debt?

    And how much do you have to put down?

    Your scores are fine.

    Its the bankruptcies and current debt that are the concern.

    You should avoid a subprime deal because they are ripoffs.

    I saved up & paid cash because I could not get a prime rate despite great credit because I was asking for a stated income loan. My tax returns were behind.

    But, in my area, houses are cheap. I paid under $100k.

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  • 1 year ago

    Lenders will use 28% for housing and 38% for total debt

    If you earn 114/y = 9500 a month. This works out to a TOTAL housing payment of $2,660 a month and 950 a month for other debt (car,student loans, credit cards, which is figured at 2.5% a month x the balance (NOT min payment).

    If you are over 950 a month, then anything over the 950 goes AGAINST the 2,660

    BOTTOM LINE. Do NOT become house poor. As I have suggested to my kids:

    Your total monthly housing really shouldn't be more then 25% of your gross income.

    You should be maxing out your 401k plans

    AND you should be saving at least 10% (over the 401k).

    If you are not doing this, then you can't afford to buy.

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  • 1 year ago

    With the recent bankruptcy - and four years is recent enough - probably not except for a sub-prime lender. The industry standard debt to income is 36% total, with a 28% max on the housing payment portion. You're a little over. Lenders don't like to see people with even very good credit to be right at the 36%.

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  • Anonymous
    1 year ago

    Your debt to income is already 38% or that's what it will be after you take out the mortgage?

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  • 1 year ago

    Clear some of that debt and maybe. With that bankruptcy though...doesn't look good. Carrying that much debt at this point...so close to the bankruptcy...I would be skeptical.

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  • Maxi
    Lv 7
    1 year ago

    You would have to ask the lender that question

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