Completely lost/Newbie

[Anonymous]

My situation is probably no different but at the same time different from other stories. I am 26 y.o, I am divorcing my husband soon, and want to get my own place ASAP.

I work for a non profit, I love this job (working with people on disability) but it only pays about 26K a year. I have 14K in savings for a down payment. I do not have any credit card debt, or car payment debt. I have 3K in student loans, and  I am paying more than the required $50/month in order to get rid of the loan asap.

I am extremely frugal and if I really put my heart to it I can probably pay off the student loans very fast.

I have no kids.

So, I guess my question is: do you all think I will be able to buy a house?

I am in MT, if it helps.

Thank you in advance for any help !

[Anonymous]

We'd need to know your FICO scores to give you a good idea of whether or not you'd qualify. Also, "how much house" you're looking for. Those are the BIGGIES.

While FHA doesn't have minimum score requirements (conventional loans DO have minimum scores requirements, btw), the lenders that lend on the FHA program DO have minimum scores. Right now, a (middle score of) 620 seems to the minimum for a "sure-fire" approval.

You need to get your scores from FICO to know where you stand. Even though the lenders will look at all three scores, you can only get Equifax and Transunion scores now (Experian stopped selling them to the consumer). So take the lowest FICO score you CAN get and "pretend" that's your minimum score.

Holler back with your scores and with the amount you're looking to spend on a home!

[Anonymous]

Yes, if your chosen home is of a value within your income and acceptable debt level.   You also didn't mention what your credit and FICO looks like.

I would personally pay off the student loans and other debt before going into the home....especially if you can "put your heart into it" and nail it fast.  This improves your position going into the loan process and will reduce your monthly obligations.  A home has many more costs associated than just the payment....the maintenance, repair, upkeep, insurance deductibles, etc. all add to it.

So the question is not can you get a home, the question is what value of home do you want?  Because at $26k a year, you can't handle and won't qualify for a very big payment.

Message Edited by txjohn on 04-14-2009 08:30 AM

[Anonymous]

Thanks for the replies

The homes I am looking at right is anything between 70K to 110K max, including some condos, townhouses, etc. I will definitely not buy anything I cannot afford. It is just myself now, so all I need is a small place.

I do not know the scores, but I will get the fico scores. I posted on another thread, I got my score yesterday, ordered here on this website, and it shows a score of 682. It says that the good part is that I never had a late payment and have agood credit to usage ratio, the bad part is that I have had a collection in 2005 due to an unpaid hospital bill for the amount of $1000. I was unemployed back then, and could not pay. I paid the account off in 2005.

[Anonymous]

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@Anonymous wrote:

My situation is probably no different but at the same time different from other stories. I am 26 y.o, I am divorcing my husband soon, and want to get my own place ASAP.

I work for a non profit, I love this job (working with people on disability) but it only pays about 26K a year. I have 14K in savings for a down payment. I do not have any credit card debt, or car payment debt. I have 3K in student loans, and  I am paying more than the required $50/month in order to get rid of the loan asap.

I am extremely frugal and if I really put my heart to it I can probably pay off the student loans very fast.

I have no kids.

So, I guess my question is: do you all think I will be able to buy a house?

I am in MT, if it helps.

Thank you in advance for any help !

---

Check out this link as you most likely qualify for downpayment assistance which would allow you to pay off your student loans with the money you already saved

http://www.hud.gov/local/mt/homeownership/buyingprgms.cfm

[Anonymous]

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@Anonymous wrote:

Thanks for the replies

The homes I am looking at right is anything between 70K to 110K max, including some condos, townhouses, etc. I will definitely not buy anything I cannot afford. It is just myself now, so all I need is a small place.

I do not know the scores, but I will get the fico scores. I posted on another thread, I got my score yesterday, ordered here on this website, and it shows a score of 682. It says that the good part is that I never had a late payment and have agood credit to usage ratio, the bad part is that I have had a collection in 2005 due to an unpaid hospital bill for the amount of $1000. I was unemployed back then, and could not pay. I paid the account off in 2005.

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Go to the general credit forum and search for hippa since your med collection is paid.  It will tell you the process of getting it off your report but there's nothing wrong with fha actually the rates are on par with conventional and only require 3.5% down compared to atleast 5% for conventional

[Anonymous]

Although you paid the hospital collection you can still have it removed. All you need to do is write a HIPAA letter to get it removed. See the forum on fixing your credit (or something like that) they have more information on it. Doing will probably give you a bit of boost in your score.

_________

WTG ... TU score 3/26/09 - 568 now as of 4/3/09 - 620

[fused]

Welcome to the forums, Angelstreet!

For help with your paid med collection, please check out the Medical Debt Forum .