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High downpayment, great income, but recovering credit and DTI ratio--can this work?

We had a job loss due to to downsizing in 2008 that led to a forced move for employment and a foreclosure in 2009. We are those folks who fell through all the cracks with mortgage assistance programs, since we couldn't stay in the same house. My husband took a 65% pay cut in order to stay employed, rather than take help. I left my own independent business in which I had invested thousands in order to get more steady work. We relocated again for better work, now steadily employed in new careers as teachers with a healthy combined income. The finances are recovering but rating is still under that magic 640 mark--last checked it was hovering around 620. We have been renting, but we are really anxious to buy and set down some roots.

Our other upside besides our income is the offer of a down payment gift that will meet or possibly exceed 20% of anything we'd want to buy. Is it possible that can mitigate the other issues we face? If the answer is a local lender, how do I go about finding a good one? i.e., one that treats us with respect and understanding for our situation and can clearly lay out our options, if any.

Thanks for any advice/thoughts.

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March 23 - River Oaks-Kirby-Balmoral
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Answers (5)

Although your past have unfortunately been rocky, you should be able to obtain a mortgage such as an FHA loan. These types of loans can accept scores as low as 580 with certain lenders. They also only require 3.5% down. Either way, the best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!
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March 28
Profile picture for Dan Tabit
Memphis,
Finding the right lender is the key.  I agree with my colleagues that an FHA loan might be just the ticket for you.  I would recommend you talk to some lenders before you apply with any of them.  Shopping rates is one thing, but finding a high degree of competence will be a much more important one. 
As a Realtor I know lenders that have jumped through hoops for my buyers.  If you already have a great agent, ask them for a referral or two.  Your situation is not uncommon, so many lenders should be able to assist.  Find one you like and trust.  Best of luck.  
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March 23
Seems like a simple cookie cutter FHA deal to me. Just choose your Loan Officer wisely. Mark my words, there are a lot of rookies out there.

Best of Luck!
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March 23
Hi Memphis Mama.  Based on what you've shared, I don't think you would have any problem qualifying for an FHA mortgage.  FHA allows for lower credit scores and it sounds like your foreclosure/credit issues are far enough behind you to meet FHA's timeline requirements for past adverse credit issues. I would love to help you if you wish. I'm in Knoxville, so not right there in your city, but we lend throughout TN. I've been helping people with mortgages for over 18 years, and would make sure you get honest and trustworthy advice and service. Please click on my profile to see my contact information and let me know if you would like to set up a time to talk (or email) further about your situation and possible options.  Thanks and good luck!
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March 23
From everything you are telling me it sounds like you would qualify for an FHA loan 3 years after your foreclosure with as little as 3.5% down but would save some on your mortgage insurance with more down.  If I can be of assistance you can contact me through my profile.
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March 23
 
Related Questions
High downpayment, great income, but recovering credit and DTI ratio--can this work?
Profile picture for Brian Nguyen
Latest answer by Brian Nguyen
March 28 | 5 answers
  • Asked by MemphisMama
  • In Mortgage
  • March 23
Mortgage Rates
 
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