@ireland381 wrote:So my husband and I are going to try to get preapproved for a mortgage, probably FHA as we'll have ~10% to put down, we think. Our credit is kind of crappy, but we've been working hard to keep it clean for a couple years now. We have enough cash for a down payment, but not sure our credit (or income) is good enough for what we want... here's the details:
Credit - Scores Eq/TU/EX (mine) 575/669/629, (husband) 636/632/612; I have several small collections (maybe 6 or 7, most under $100), a small PAID state lien, about $700 in credit card debt, $70K in student loans that are being deferred (current), and several late payments on several accounts, but my credit is basically clean for the last 18 months or so. Husband has several charge offs, one $650 collection, old late payments, and about $5000 in credit card debt. We have paid off our car and several thousand dollars worth of debt in the last 2 years, and what's left of our credit card debt will be paid off within about 5 months.
Income - Husband makes about 54K/yr, and I work part time and only make about $12K/yr right now. I have been on unemployment for about a year and a half, and only started working 1 year ago. I assume unemployment income isn't included as income since it's temporary? We're both hourly.
Monthly debt - If our credit shows are car as paid, our debt payments should be about $600/mo- three credit cards + student loan debt. However, the credit cards will be paid in a few months, and my student loans are currently deferred, so I'm not sure how that figures in. Also, we applied for a loan and weird things came up here... such as a collection account listed twice (same creditor), once for the actual amount ($0 monthly payment with a $150 balance), and one that said the balance was $150, with a monthly payment of $2370! That amount was the original (high) balance on the account. I have no idea yet if this is an error in how the bank presented the info or if our credit report shows this weird information. I was given the option while applying for the loan to simply say accounts had been paid or would be soon, and they took them off the list of liabilities... not sure how that works as far as verification.
Employment - Husband has had a steady job for 4 years, same employer. I have been employed for a year, part time, collecting partial unemployment during that time and full unemployment for 6 months before that. We are looking at FHA loans and I know job history is important, but is it equally important for both spouses?
Assets- we have $10K in savings right now, no other investments or assets; but we are also receiving a gift of $25K from a relative to help with our down payment.
Location - Washington, King County
Property - we don't know yet, but looking for a single family home
Value - We have no idea but based on what we want to pay per month, we think we're looking in the $250-275K range... first time buyers.
Occupancy - Owner occupied.
I believe if you work only PT that you'll need to be working that same job or in the same field 2 years for FHA to accept the income. And...his income might not be high enough to cover a 250k mortgage even if you didn't have any debts at all. Just my opinion I'm sure many others will chime in and good luck hope you get your loan soon!! 
Yeah, that's definitely a possibility at this point. I was suprised at my one low EQ score 
However, I tried for almost a year to PFD on all those accounts with no luck on any of them. After several attempts for each, I mostly got no response at all, or if anything, all I got was a verification of the debt, which I clearly stated I was NOT asking for... no responses to my offers to PFD at all. I could try again, I guess, but it was pretty exhausting and time consuming doing everything by mail, 'cause each response, when I did get one, took months. So maybe I should just pay everything...
@ireland381 wrote:Yeah, that's definitely a possibility at this point. I was suprised at my one low EQ score
Although this is not a favorite process on this board. I called all of my CA and requested the PFD over the phone. The ones that accepted I paid on the spot and they deleted the account without a letter. A lot of times they tend to not want to send you a letter but will do it over the phone and in my experience they honor their request. I dealt with Centerpoint Energy (gas utility), TXU (light utility) CMRE, FBCS, and Ad Astra. I would Google other CA and see how they handled the request in the past. For me I called, paid and they deleted as promised. I would do this before I paid everything and right now only call and pay the ones willing to delete and outside of the SOL (don't want to wake a sleeping dog). I went from a 563 (fico EQ) to 633 current and I started March 2012.
