Could I qualify for a Conventional Home Mortgage?

[redsox31324]

I recently pulled my 3 Fico scores from this site and am currently sitting with a 578 experian, 628 TU, and 648 Equifax.  We've recently seen our dream house drop down to an affordable price and want to act quickly.  I have the 5% money down covered, but wondering if we would qualify for a Conventional Loan.  I'm currently in a Rehabilitation Program for 2 Student Loans that will be completed in Feb, so I believe that FHA, VA, and USDA are out of the question.  Answers are greatly appreciated!

[redsox31324]

Perhaps, I need to provide more information.....

We are looking to purchase in Georgia, zip code 31324.

I currently average $8600 a month, but only $5000 of it is not based on commission.

I've worked at my current job for a total of 2years, but not consecutive.

Been in the same field for about 2.5 years.

Since I've returned to my current job, I've been there for 1 year total.

The house price is $236,000

Again any insight would be helpful

[redsox31324]

I guess my real question is two fold,

Since I'm in a Student Loan Rehabilitation program (made 5 payments on time), would I be able to qualify for any government loans (FHA, VA, USDA)

Second, if these are unattainable, can I still get a Conventional Mortgage with the Credit Scores mentioned above.

[elleng81]

I don't know much about the conventional loans outside of my local credit union offering a conventional mortgage with a mid-620 score and 10% down. As far as FHA/VA loans, you would have to be out of your student loan rehab program in order to qualify. I completed my rehab in July, my loans were picked up in September and we are now under contract on a new house and set to close on 11/15 with FHA. I don't know what is on your credit report, but I saw quite a bump when my loans were picked up and the negative collections from the US Dept of ED were removed from my credit report. Hope this helps!

[bdpbeiia]

Hi Ellen, I'm also in the repayment program with one of my fed student loans. How much of a bump did you see when the loan was reinstated? Thanks!

[redsox31324]

Thanks Ellen, I'm looking forward to the bump.  I'm currently in the process of apply with a LO for a loan right now.  Talked with her this morning and submitted the application.  She seems to think there is a way to go (but don't they all say that....).  Just keeping my fingers cross that we can get something accomplished sooner rather than later.  Either way, I know we'll have a way to go in the Spring.

[elleng81]

---

@bdpbeiia wrote:

Hi Ellen, I'm also in the repayment program with one of my fed student loans. How much of a bump did you see when the loan was reinstated? Thanks!

---

Hi there. I saw about a 40pt increast on Ex and EQ. DoE didn't show up on my TU report. My new loans are now reporting (Great Lakes is the new servicer) on all three reports and I saw about a 12 pt increase with that new tradeline and history from 2009.