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I am looking for a mortgage, credit 680 or so

I am having a hard time getting approved for a mortgage. My credit score is around 680. This would be my first purchased home. I have 65k to put it down, the home I am looking to buy is 580k. It is a two family town house. The second floor I can easily rent out for 1.7k monthly. The home is located in Long Island City, Queens. My 2012 income is 75k. I am employed full time plus I have my own business that is worth at least 400k. I been working the same job and owned the same business both for over 10 years. Yet, I can't get approved anywhere. If anyone can be of assistance or any lenders out there willing to help me I would be more than happy. Your comments and info are all appreciated in advance
  • August 16 2013 - New York
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Answers (3)

Need a little clarity. Why are you being denied? Is it due to lack of income? How are calculating your TOTAL?  You only provided 2012 W-2 income, how about 2011 W-2 income and your self employment income for the past 2 years? Or, could it be that you are buying too much of house?
Is it due to DTI (Debt to Income)? 

Thanks
  
  • August 16 2013
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There's more to it than just the down-payment and your income.  Lenders also take into consideration your debt-to income ratio and total debts.  If you are already buying a home and have a mortgage for that, the requirements are stricter when buying a second home. 
 On the surface, your mortgage payment would be more than half of your gross monthly income.  That's an obvious problem.  When you are trying to add the potential income of the side you would rent out, it takes a bit more paper-work and history to be able to work that into the financing details.  Plus lenders will need more than 1 years worth of history to include the income from your own business.  So that adds to the complexity of your situation.
 A good lender would be able to tell you exactly why you don't qualify and what you would need to do in order to make the purchase.  You may need to find another lender who will shoot straight with you and tell you what needs to be true in order for this deal to work. 
 Good Luck!
  • August 16 2013
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I have a great Broker I work with who may be able to help or if anything point you in the right direction and let you know exactly what is going on with the denials and what you can do to correct. Contact me if you would like his information!
  • August 26 2013
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