670 score, 16k, want to borrow 700k

[Anonymous]

Is there any hope for me?
670 is lowest credit score. I anticipate one more score increase in august.
I have 16k I can put down. I earn 175k and have st loan car note and kid costing about 1700 month in payments.

I have a crazy high rent 4500k that ends Friday
(Yea) . If there is any hope of my being approved for a mortgage I’d like to stay month to month a buy no later than Sept. A move to would like eat 1/2 of my 16k .

[Anonymous]

You don’t have enough saved. Put the $16k towards an emergency fund first. You can find much cheaper housing. Find a roommate or three.

[Anonymous]

If you're in DC, you can definitely do better thank 4500 for rent with one kid. Like way better, parking and utilities included. It will be fine if you lock into a lease for a year because then you will have saved a lot more, and go month-to-month after 1 year.

[Anonymous]

You need to rent a less nice place. Like $1500 less.

[Anonymous]

OP will the $16k wipe you out? How will you pay for emergencies, house maintenance, life happens?-

Keep renting (somewhere much cheaper) and build your credit and emergency fund

[Anonymous]

Anonymous wrote:OP will the $16k wipe you out? How will you pay for emergencies, house maintenance, life happens?-

Keep renting (somewhere much cheaper) and build your credit and emergency fund

I will continue to live paycheck to paycheck.

[Anonymous]

Your credit should be good enough for an FHA loan with 3.5% down. You will need money for closing costs too so you would still need to save a bit more.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP will the $16k wipe you out? How will you pay for emergencies, house maintenance, life happens?-

Keep renting (somewhere much cheaper) and build your credit and emergency fund

I will continue to live paycheck to paycheck.

You make A LOT but you need more than 16k to buy a house. Sorry. Closing costs alone for a 700k will be AT LEAST that, not even including a down payment.

[Anonymous]

You might get a mortgage but you’re not going to get a great rate. 16K isn’t a lot for a down payment. Do you have other savings already? I think that mortgage is way too high...I’d say tighten up your spending discipline before jumping into a mortgage...

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP will the $16k wipe you out? How will you pay for emergencies, house maintenance, life happens?-

Keep renting (somewhere much cheaper) and build your credit and emergency fund

I will continue to live paycheck to paycheck.

You make A LOT but you need more than 16k to buy a house. Sorry. Closing costs alone for a 700k will be AT LEAST that, not even including a down payment.

+1. I just took out a 547k loan (so just under jumbo) and the closing costs were over 11k. I’m not sure this is doable.

[Anonymous]

Anonymous wrote:Your credit should be good enough for an FHA loan with 3.5% down. You will need money for closing costs too so you would still need to save a bit more.

Where are you looking to buy? In DC hot market, sellers aren’t looking kindly on FHA loans because you can’t waive inspection or appraisal contingencies. Not to mention they will look to see if you have enough to close and extra in case house doesn’t appraise.

[Anonymous]

Ooof with student loans, car payments, and kid payments (unclear if the kid is 1700, or all of these combined is 1700), I don’t think your debt to income ratio will be approved by a lender. It’s definitely in the “yellow” zone.

But you can always go through one of the mortgage sites for a pre-approval and see what they say.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP will the $16k wipe you out? How will you pay for emergencies, house maintenance, life happens?-

Keep renting (somewhere much cheaper) and build your credit and emergency fund

I will continue to live paycheck to paycheck.

You have a spending issue. You need to get your rent down to $2K-2500 a month, pay off all your debt and save. There is zero excuse to have no savings and debt at that income level.

[Anonymous]

I don't think you'll be able to borrow $700k with only $16k to put down. That $16k is only a bit over 2% of the amount you want to borrow. Most lenders want you to put down at least a 5% down payment. Zero-down mortgages do exist, but they require good credit.

Also, you really don't want to be cash-strapped and paycheck-to-paycheck after buying a house. Houses break and are expensive to fix.

Is there hope for you? Sure—for the future. You make good money, so you can save. Take a year or two to lower your expenses, save up for a larger down payment, and get your credit in better shape. Then you'll be in a better position to buy.

[Anonymous]

Anonymous wrote:Ooof with student loans, car payments, and kid payments (unclear if the kid is 1700, or all of these combined is 1700), I don’t think your debt to income ratio will be approved by a lender. It’s definitely in the “yellow” zone.

But you can always go through one of the mortgage sites for a pre-approval and see what they say.

All total is 1700 apx (that’s the max)