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
- Beverly SLv 71 year agoFavorite 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.
- EvaLv 71 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 .
- kevinLv 61 year ago
you should be okay, but if you want to be sure talk to a mortgage company and get per-qualified.
- ntLv 61 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.
- How do you think about the answers? You can sign in to vote the answer.
- real estate guyLv 71 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.
- curtisports2Lv 71 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%.
- Anonymous1 year ago
Your debt to income is already 38% or that's what it will be after you take out the mortgage?
- Casey YLv 71 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.
- MaxiLv 71 year ago
You would have to ask the lender that question