I was pre-approved for a 30 year FHA loan of 90k. I have an accepted offer on a duplex for 85k + 5k of seller concessions to cover the closing costs. The current tenant pays $600/mo in rent but I have my own tenant coming in, not sure if that matters, and I will live in the other unit.
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Job History: I am a firmware engineer and I've been at the same job for about 8 years.
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Income: I make 52k/yr even.
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Credit: My credit rating is apparently just under 640... even though I thought it was closer to 660 according to CreditKarma... It's also gone up significantly and rapidly since leaving my ex earlier this year.
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Debt: I owe about 25k on student loans and another 18k on a car. I pay 175/mo for the student loans and 250/mo for the car.
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Assets: I have almost exactly 20k in an IRA but after putting up the earnest money deposit I have almost nothing in my checking/savings accounts. Just enough to pay bills that are coming up. This is what I'm worried about... and one other thing...
I have a complicated situation with my tax return this year, I haven't filed yet but I'm going to owe about 4k. I split up with my ex this year, and what we had been doing for several years was intentionally paying too little into taxes out of my paycheck so that we would have more money throughout the year knowing that she would get a big refund for claiming our children (we were never married, together for 13 years though). So what we had done for the last few years was take part of the refund she got to pay what I owed at the end of the year... I've convinced her to do that this year as well, and she's given me $1000 of it which I have in cash (afaik I can't deposit this, my lender said not to make any large deposits) but she may not have the remaining $3000 until after I have to file. I'm concerned that I'm going to be filing right around the time the underwriter will be investigating my loan application and see that I owe ~$4k to the IRS and that I have basically nothing in my checking and savings accounts...
I KNOW I can easily afford this home. I pay $800/mo in rent where I am and was paying $1000/mo where I lived 4 months ago. My tenant will be paying $100 MORE than the P&I on my loan. All told, including PMI, homeowners insurance, and property taxes the house is going to cost about $850/mo. Add another $200/mo for savings for maintenance and repairs and then subtract the $600/mo my tenant will pay and the house will cost me $450/mo, compared to the $800 I'm paying now and the $1000 I was paying 4 months ago. Right now, at $800/mo rent, I have almost another $800/mo in unallocated income... with this house I'll have over $1100/mo in unallocated income.
I would have saved up more money but the break up with my ex just happened a few months ago and the house I found is PERFECT and they don't stay on the market long... what can I do to help my chances of being approved?
Thank you.
Submitted March 05, 2017 at 01:17PM by _codexxx http://ift.tt/2ltvnGW
