How can we get approved with our situation???
From rural Eastern KY, went to professional school and now I am back. My husband and I basically got the opportunity of the century. A home with minimal cosmetic issues (my grandparents next door neighbor) was brought to us to offer to sell for 125K. It is 4 bedrooms, 1.5 bathrooms, new HVAC, newer roof, septic system, custom cabinets, great backyard and could be close to my grandparents as they are in their late 70’s and will eventually need more assistance really the only work done would need to be cosmetic. It would be a direct sell. Unfortunately my husband and I have a lot of student loan debt. I am a chiropractor that makes decent money, my husband is a safety director that also makes decent money. My credit took a massive hit this year when I was ill informed about options for my Sallie Mae loans and a customer service rep basically told me I would be ineligible for a lower payment unless my loans defaulted and I could get loan modification payments. However husband’s credit is good. The issue pointed out to us by a local mortgage guy was our debt to income ratio. We are looking into financing programs that offer 3.5% down or 100% financing since we are just really getting on our feet and can’t afford the standard 20% down since this house basically was offered to us for purchase and we weren’t really looking. Our monthly student loan payments are right at $750 for the both of us and we both have some on deferment for the time being. Our families aren’t really in positions to assist us. According to calculations with 6.75% interest, 100% financing for 30 years would give us about an $815 monthly payment which is easily something we could afford. We both drive paid off cars, have relatively no credit card debt (we pay it off monthly), and our monthly bills are very low. We live with my parents at the moment for free. Are we crazy to think we have a chance of qualifying for a mortgage of some kind? I am fine with my husband taking ownership of the mortgage without my name on it, if that would be a better option. We have been put in touch with another lender but I’m feeling very discouraged and just need some sort of outsider opinion.