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Contributor
thenewgirl
Posts: 92
Registered: ‎05-12-2009
0

Can I get an FHA loan?

I know this is actually a pretty vague question, but if there's anyone who has had experience getting one lately, I'd love to hear about it.  My scores are:  TU:  618, EX:  629, EQ:  630.  I keep hearing that the magic number is 620 or higher for your middle score, but how much of your approval is based on what is actually in your CRs, and not just the number?  I just started the HIPAA process to start hacking away on my medical collections, but I'm renting right now and my lease is up in about 6 weeks.  If I can get a loan before that, I'd really like to.  If anyone has any insight on this, I would greatly appreciate it!
Regular Contributor
RadioRob
Posts: 116
Registered: ‎06-19-2009
0

Re: Can I get an FHA loan?

As you suspected, getting approved for a home loan is more than just a credit score. 

 

Yes, the credit score is an important part of the decision making process but it is not the only part.  

 

In addition, the Loan Officer and Underwriters will be looking at your Debt to Income Ratio (DTI) and will need to make sure they feel comfortable you have enough money not already tied up for repaying other debts.  They'll look at payment history (many will not approve loans in which you have had missed payments in the last 12 months), most likely also verify your current living arrangements checking with the landlord if you've paid on time, etc.  

 

6 weeks is a very short amount of time.  In addition to actually dealing with the loan itself, you still need to find a house, negociate a price, deal with the other issues such as appraisals, inspections, etc.  I might check with your landlord to see if you could move to a month-to-month agreement.  It may cost a little more, but it will remove the immediate crunch from you.  You don't want to make a mistake you'll later regret buying a house that is not right for you just because you had to have it done in a certain time frame.  

 

There is a board here on the site dedicated to discussions of home loans.  The folks there are much better experts than I am.  But hopefully that will give you a little food for thought.  

 

Good luck!

New Contributor
pokershark
Posts: 178
Registered: ‎07-13-2009
0

Re: Can I get an FHA loan?

Yes, scores is only 1/2 the battle.  I've bought and sold 3 homes over the past 7-10 years.  Other things to consider is do you have any recent negative marks on your credit?  And by recent I mean in the past 12 months?  If so, it will be tough.  Those older than 12 months will likely require a letter of explanation. 

 

Have you been saving for a down payment?  I suspect you will have to put a minimum of 3% down, plus some closing costs if you can't negotiate the seller into paying them.  There are some 100% loans out there that avoid the down payment but I believe you require higher credit scores.   Besides it seems you would want to put a little down so you have at least some equity when you move in, especially in today's economy.

 

The ratios mentioned by the other poster are 29/41, meaning your house payment can be a MAXIMUM of 29% of your GROSS income and the amount of all REPORTED debt (including the new house) can only be a MAXIMUM of 41% of your income.  Do you fit into these guidelines?  Sometimes if you are within a percentage or two, they will flex.  More info here:  http://www.fha.com/debt_to_income_ratios.cfm

 

I agree, 6 weeks is a very short time frame to get approved, find a home and GET CLOSED!  Usually it takes 30 days or so just to close after all negotiations are final.  It's not impossible, just unlikely.  I'd say more like 2-3 months total, and I would agree looking into a month-to-month lease is a good idea.  Most apartments are more than willing to work with you if they are advised you are house hunting.  Expect to pay $50-$200 extra per month, depending on your location for this month-to-month option.



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Frequent Contributor
rockymtngrl
Posts: 337
Registered: ‎09-24-2008
0

Re: Can I get an FHA loan?

FHA usually ignores medical collections
Valued Contributor
WannaHouse
Posts: 1,080
Registered: ‎06-08-2008
0

Re: Can I get an FHA loan?

Is your credit clean for the last 12 months? No late pays? Do you have the income and steady employment?

 

I say give it a shot! All they can do is say no and then tell/show you where to improve.


Kathy


We are finally homeowners!!

Closed May 5th-30 yr fixed at 5.25%.

Established Contributor
rmily
Posts: 670
Registered: ‎07-12-2008
0

Re: Can I get an FHA loan?

Just a note, be aware that if you didn't buy your scores here at MyFico or get them from a lender, there's a good chance they're not FICO scores.  They could be a long way away from what the lender is seeing.  I'm assuming they aren't FICO scores because you listed the Experian score, which consumers can't buy any more.  If that's the case you might want to check them out here to get a better idea of where you are since you're really close to the magic number.

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