Profile picture for chughes37

Need Advice on FHA Loan Qualification!

My husband owns a 2 bed house that is underwater, worth $70k and he owes $130k. We live in it now, and not only is it super small, it is in a rough neighborhood. The house is not in my name. However, I owe about 100k in student loan debt. Right now this is about the only debt I have other than a 3k credit card. His name is on both our vehicles. I just landed a job (post MA degree) that is over an hour commute, and we are desperately looking for a solution. We are looking for advice on whether I, alone, should try qualifying for a FHA loan of no more than $175k, with the 3.5% down or would it benefit us to both try for a loan? NOt that we look to foreclose on the underwater property... but we are so disheartened by the loss in value it is making us sick. We feel trapped, because of the monthly payment especially because we have not had financial hardship. We want to move into a larger home that is a fair distance between both of our jobs and in a neighborhood that is decent for our son. We would be looking to rent out our current home. Here are the specifics:  My Credit Score = 690, His is probably 750-800, combined monthly income = $12000k, our pre-mortgage DTI=29%. Any info would be greatly appreciated!!! 

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 21 2012 - Farmington Hills
We think we've answered this question for you!
 
 

Replies (3)

I completely understand being bummed about the value...however the bank did not force your husband to purchase that property and I am also certain hey did not set the price for the house or guarantee the value.  I am glad to hear you want to maintain this home.

Is your husbands current home FHA financed?

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 22 2012
Hi,

You really need to sit down with a lender and run the numbers. With your credit scores, you may have the option of a FHA or conventional loan. I would like to be of assistance to the two of you. You can contact me by clicking on my name.

Thanks,

Mark
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 22 2012
Profile picture for chughes37
To clarify, we have every intention of hanging onto the home. Still, the mentality that the entire weight of this loss in market value falls on the responsible party, i.e. my husband (who has not once been late paying his mortgage since conception 9 yrs ago) is quite humorous. Especially because others who aren't paying are getting modifications. 

But to get back to our situation, my job is less than a year old but I've been working as faculty for over 3 years (while attending grad school) but prior to this job I was paid less. His existing mortgage is not a FHA loan. 

I appreciate your responses, and suggestions. I will click on Mark and continue to move fwd in this process.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 22 2012
 
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
Related Discussions
Need Advice on FHA Loan Qualification!
Profile picture for chughes37
Latest reply by chughes37
January 22 2012 | 3 answers
FHA Qualification
Profile picture for Celia Butler Home Loan Diva
Latest reply by Celia Butler Home Loan Diva
April 06 2011 | 2 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 22462 Haynes Ave, Farmington Hills, MI Home For Sale
    22462 Haynes Ave, Farmington Hills, MI 48336

     For Sale: $45,000

    • Beds: 3
    • Sqft: 1062
    • Baths: 1.0
    • Lot: 10890
  2. 39073 Horton Dr, Farmington Hills, MI Home For Sale
    39073 Horton Dr, Farmington Hills, MI 48331

     For Sale: $475,000

    • Beds: 4
    • Sqft: 3400
    • Baths: 5.0
    • Lot: 14375
  3. 29874 Cromby Ct, Farmington Hills, MI Home For Sale
    29874 Cromby Ct, Farmington Hills, MI 48331

     For Sale: $290,000

    • Beds: 5
    • Sqft: 2400
    • Baths: 4.0
    • Lot: 12632