What would be the chances?

[CrunchyDoula]

What would be the chances that you could get a loan today for $60,000 for a house, making $3200 a month (After taxes)? We have no debt, but not great credit because of really late CC payments.

No flames, I am just asking.

[Krystal323]

i'd say the amount wouldn't pose a prob but the credit rating would

we got preapproved for 40,000 on my 1100/mo income

credit ratings suck. i have only 1 late payment in my entire 10+ years of credit history, and my credit's only "good"

are you trying to buy because renting is nearly unaffordable?? we are in that boat too--it's a twisted place to be!

[CrunchyDoula]

Originally Posted by Krystal323

i'd say the amount wouldn't pose a prob but the credit rating would

we got preapproved for 40,000 on my 1100/mo income

credit ratings suck. i have only 1 late payment in my entire 10+ years of credit history, and my credit's only "good"

are you trying to buy because renting is nearly unaffordable?? we are in that boat too--it's a twisted place to be!

Yeah. I mean we can rent a place but it is more, a lot more then I can pay if we are paying a mortgage and I know that a mortgage intails home improvements and such. I am just trying to weigh all of our options.

[p1gg1e]

If you find a bank that manually underwrites then your chances would be really good. Dave Ramsey might have info on his web site about finding one.

[Fujiko]

When we went into the mortgage broker about a month ago, he pre-approved us for a USDA rural development loan for $235,000, and we have an income of about $3200/month after taxes. We DO have really good credit, but he said that as long as our credit was above a certain number (I think it was something like higher 600's) that it doesn't matter, the rates are the same. I don't know about what happens if your credit scores are below that, though. You could always go talk to a broker, or at least e-mail one, and lay it all out for them. They might tell you "ok", or if not, they might have good advice anyway!

(FTR, we are not actually using all of the pre-approved amount, that would be crazy on our income!)

[cristeen]

Originally Posted by Crunchy Doula

What would be the chances that you could get a loan today for $60,000 for a house, making $3200 a month (After taxes)? We have no debt, but not great credit because of really late CC payments.

It depends on how bad "not great" is. That loan amount with that income shouldn't be a problem, but you may wind up paying through the nose for it in interest rates.

It also depends on how stable that income is, how long it's been at that level, how long it's liable to stay at that level, etc. For example, self-employed people are having a more difficult time getting loans right now because the have trouble proving income. Or someone who works on commission only may have difficulty with fluctuating income. Or if someone recently changed jobs. All these things can be factored in.

With what information you gave us, assuming "not great" doesn't mean "abyssmal", you should be able to find something.

[rhiandmoi]

When you say a home loan, do you mean a 30 yr mortgage? Lenders currently care about things like -Do you have cash on hand for a down payment and closing costs? After making your down payment would you have 2-6 months worth of payments in a cash reserve? Would your total cost of housing be less than 30% of your income?

I think if you have the cash on hand to make a down payment and have a cash reserve for your payments, a $60K mortgage has a very small monthly payment and you should be able to get a loan. Your rates might not be excellent but you could get something. If you don't have the cash on hand, you should probably rent for 1-2 years while you save and that will also help your credit score.

[TiredX2]

I would also think the down payment will make a HUGE deal right now. What would the value of the house be that you are taking out a $60K loan on? With an income of $3200 monthly you would qualify for way more than $60K if your other stats are "right". How long ago were the late CC payments? And have you paid the cards off now?

[Sharlla]

Originally Posted by Krystal323

i'd say the amount wouldn't pose a prob but the credit rating would

we got preapproved for 40,000 on my 1100/mo income

That's good to hear, DP just applied for a loan with a mortgage broker, he makes $1700 a month but he pays out like $400 a month between his car payment and student loans. I was worried that he wouldn't get a good amount due to that fact and the house that we want to buy is 40K, he has near perfect credit.

I have crappy credit but no debt and made 32K last year, I wonder what kind of loan I would qualify for.