Contemplating Buying A Home

[Stephon Conteh]

Been working on my credit & finances during 2019. I believe I’ve reached a point where I’m eligible for a conventional loan however I’m afraid I’ll be denied. Does anyone know if I’ll be able purchase a home using a conventional loan or first time home buyers program? (Here’s all the info I can give to assist with your response to my question.)

Location: Philadelphia, PA

Credit Score: 660

Income $2200/month

DTI: 30%

Employment status: Full Time

Cash for downpayment: $4000-$6000

As far as my “debt” I have a total of 6 Credit Cards & my card utilization is 75%, 63%, 64%, 90%, 57%, 65%. Would this affect anything?

[Janine Covello]

It sounds like the credit card ratios are high- with your monthly income being so low I feel like you are going to have a hard time getting the loan and interest rate you would want- while I agree you want to get some specifics from an actual lender- having recently gone through that process myself I would aim for the following-

1- Get that credit score above 700

2. All credit cards under 30%

3. Plan a larger reserve for closing costs, inspections, upfront payment on insurance and unforseen rehab expenses- I have bought 3 houses in the past 2 years and not once did I not need at least 1-2k extra to get it "rental ready"