+1 vote
asked in Mortgage by
Gustan Cho’s website has the best and most up to date info I’ve found so far, and it’s really impressive that you guys take time to answer all of these questions! Thank you in advance for your time.

We are in desperate need of a game plan and don’t know where to start! Our landlord’s son wants to move back into the house we rent over the summer, which leaves us in a tight spot. We’ve been trying to put ourselves in a position to buy this house as the landlord said he wanted to sell to us, but had a few setbacks, and now the son doesn’t want to sell.

My scores are almost at 700 but I haven’t worked (home with kids).

My husband is self employed. We need to file our taxes and want to show the most income possible but also don’t have time to wait for our accountant. Do we need them done by a CPA or can we use Turbo Tax? We want to take as few write offs as possible now and amend them in the future to reduce our tax owed. But will a payment on taxes owed be factored into our DTI?

- He also has over $100k in student loans, so I think we need a conforming loan to be able to use an IBR payment. We were looking at Home Possible and Home Ready, but right now his score is only around 580 due to the high student loan balance as well as a bunch of medical collections totaling around $15,000 dumped on him from a hospital stay. We were working on a payment with the hospital but they sent to collections anyway. Trying to get them to recall it. Not sure what other options we have to increase his scores.

We are in Connecticut. Do you have options or advice for us?

1 Answer

0 votes
answered by (40.8k points)
Self-employed borrowers need to have two years of income tax returns. The two years of adjusted gross income are averaged. Cannot have declining income. The minimum credit score requirement on conventional loans is 620 FICO. However, you should have a higher credit score if you want competitive mortgage rates. You do not have to pay outstanding collections and/or charged-off accounts. You cannot have any credit disputes. You need to go to our website at www.gustancho.com and scroll down to the footer. Look at resources and click on the two blogs about boosting and rebuilding your credit. Follow those instructions and this should boost your credit scores in several weeks. You do have options. However, it will take time. It cannot be done overnight. Please reach out to us at gcho@gustancho.com if you have any questions. Or call us at 262-716-8151 or text us for a faster response.