My fiance and I are in the Tampa, FL area. We have a combined income of $5300 gross each month. We have a combined debt of $1300 each month. Her CRA scores are around 630 and mine are in the 730 range. We have not found a house or any specific area. We just want to know if we are overextended with our debt and if we should wait. We don't have much money to put down just yet but if we need to we wait. Are there any recommendations on any type of loans to look into?

On average, you budget to spend around 35% of your income on housing which in your case would be $1600 to $1800. As far as over extending yourself, its really up to you to decide. If you plan on working to reduce your debts then you should be fine budgeting the 35% towards housing. If you like to spend however, you should probably find a home with mortgage payments of $1300-$1500.

If your fiance has a credit score of 630, it would probably be best to leave her off the application. Your credit score would qualify for a 'no income documention' loan.

Drop me a line if you need an more in depth analysis.

We are not big spenders but unfortunately we are not big savers either. We have reduced almost all of my debt. I would like to include her in the loan since we are getting married and it would increase our chances on finding more of a home with both of our incomes. I realize that the 28% to 35% is used for housing expenses. But what is allowed % wise for debt, I have heard up to 35%. Is that 35% a total of housing and debt combined or is it 28% for housing in addition to 35% for debt?

It varies by lender. Standard Fannie/Freddie threshold is 39% back end (total monthly debt payments), however I have seen Freddie allow as high as 65% with plenty of reserves.

With the no doc loan Aaron had referenced, your ratios wouldn't even come in to play as there would be no income, assets, employment listed on the loan application. However, you would be looking at a higher than conforming rate due to the doc type.

I would suggest if anything possibly going Stated Income, Verified Assets, assuming you have sufficient reserves, if not go Stated Income Stated Asset or No Ratio. This will save you a little in rate as it doesn't take quite the hit a No Doc would. Just my 2 cents.

Believe me any advice is definitely appreciated.

Consult a Mortgage Broker in your area.

I always want to know your present and future goals with this home...

1. How long are you planning to stay in this home?
2. Do you foresee an increase in your income anytime in the future?
3. What line of work do you do? Is the pay: consistent or seasonal?
4. What are your plans with this new home?

The more dreams that you have for this home... the more you should choose a program that caters to it.

Here's something to help you out: Select the Right Loan Program

1. 5 to 10 years
2. No
3. IT, consistent
4. Not to flip, just establish a home for my fiance and our newly adopted son.

Is there a type of loan program that does not consider 401k loans as a debt?

Honestly, you are going to have to fill out a loan app, have your credit checked and get exact numbers in front of you so you can decide. There are just too many variables without all the info.

Hey I am licensed in FL. Need help with a quick prequal just email me.

In Tampa it is all about finding a home with payments you can afford before you get priced out of the market.

My wife is a realtor and I own a small mortgage company.

If you would like to speak with someone that knows the tampa market please give us a call.

Born and raised in Tampa. Our market is tampa only!!

Most banks are comfortable with you dishing out 55% of your gross income...they feel you will be able to handle that...
I look at it this way... Tell me the MAX you feel you can handle monthly without getting into trouble... I'll take that amount and turn it into a loan amount. You keep your sites in that range or less and all should be ok .

good luck!