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Established Member
Posts: 12
Registered: ‎04-01-2011
0

Could I qualify for a mortgage?

I'm guessing the answer is no, but I have to check...  I just found out today that my landlord will not renew my lease on Sept 30, which means I need to move.  I'm probably going to rent again, but I'm exploring all options.

 

My equifax score today is 642, I don't know the other scores.  I have no judgments.

I make about $42,000 a year from my job for the last 2 years now.  I've been at my current job for over a year.  I also get $650/month in child support, and have for 7 years.

My only loans now are student loans, totalling about $200/month.

I'm in Arizona.

 

Big negative:  I don't believe I have money for a down payment.  I've heard that in this economy, the qualifications have become more strict and that may be enough of a reason I couldn't get a loan.

 

Thanks.

Current: 519
Regular Contributor
Posts: 172
Registered: ‎07-06-2011
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Re: Could I qualify for a mortgage?

I was pre-approved with a 642 mid score and everything went to underwriting today (or tomorrow I guess).  I have no money down but am getting a USDA loan which has income guidelines and the home must be in a rural area (you can check maps online to see if it qualifies).  Our seller is paying closing costs and we were quoted with needing to bring $42 to closing.

 

However, I have been at my job for 4 years and they said they like to see 2 years with your current job.  I do have a few things against me such as collections and a bankruptcy although the LO seems to think all will be ok.

 

Good luck with your decision!


Starting Score: EQ: 540 TU: 606 EX: 605 (all from lender on 7/26/11)
Current Score: EQ: 601 TU: 648 EX: 642 (from lender on 8/4/11)
Closed on our home on 8/31/11!!!!
Goal Score: 620-650 to start

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Established Contributor
Posts: 736
Registered: ‎08-25-2008
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Re: Could I qualify for a mortgage?

depending on where in AZ you are - you may find a home that qualifies for USDA loan.. they don't require downpayment and could even financie some of the closing costs if the apprisal comes back higher than the requested loan amount.

 

Best of luck.

New Member
Posts: 8
Registered: ‎08-09-2011
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Re: Could I qualify for a mortgage?

Depends on what route you take.

 

FHA is probably your best bet. You will need some sort of down payment tho. You also must have a mid score of 640 for most lenders. Some require a 620. Wells Fargo has a FHA for 600+ ... so you may need your other scores. Thats what was given to me by a few lenders. 

 

Do you have any active trade lines? Bad Debts? 

New Contributor
Posts: 72
Registered: ‎06-02-2011
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Re: Could I qualify for a mortgage?

What website can I use to see the USDA rural area maps?


Starting Score: 09/14 EQ 596 TU 587 EX 588
Current Score: 11/14 EQ 670
TU 602 (CK VantageScore 688)
EX 656

Goal Score: 700


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New Visitor
Posts: 6
Registered: ‎08-10-2011
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Re: Could I qualify for a mortgage?

Regular Contributor
Posts: 188
Registered: ‎05-26-2010
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Re: Could I qualify for a mortgage?

I think USDA would be a good option for you if you are looking for 100% financing. You should be fine (depending on your other two scores) credit wise and income wise.

 

Good luck and let us know how it goes!

Established Member
Posts: 12
Registered: ‎04-01-2011
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Re: Could I qualify for a mortgage?

Thanks for the information, and the USDA website.  I considered the FHA loan for all of a day, but on this short notice I am not prepared for even a 3.5% down payment.  I've got move-out costs, and there are always other "hidden" expenses.  According to the USDA map, but it looks like the area I'm in now may be an eligible "rural" area.  I'm on the outskirts of town, and if I go even a few minutes further out from the city I'm definately in a rural area. 

 

If I'm thinking about this in the right way, I should be able to keep my kids in the same school district (through open enrollment they could stay in the same school), and also buy a house that is 100% financed, only minutes from where I am now.  Ideally I would like to stay in the same neighborhood, but this could still be a potentially good situation.

 

I talked to a real estate agent yesterday, he was talking about FHA loans with 3.5% down, but I'm going to run the USDA loan idea by him and see if it would really work that way.  Or find a different agent who may be more experienced with this.

Current: 519
Senior Contributor
Posts: 3,889
Registered: ‎05-24-2011
0

Re: Could I qualify for a mortgage?

You should check with your state to see if they have funds available for first time homebuyers that assists with closing costs.  Our state is out of money but will be getting some after Labor Day.  We don't qualify anyway because I make too much money (boy I wish that were the case).

 

It is sometimes hard to find the information but it is available out there to find - if there's money available you should check into this.  If you get a seller willing to pay all of your closing costs, then you only need the down payment if FHA.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Established Member
Posts: 12
Registered: ‎04-01-2011
0

Re: Could I qualify for a mortgage?

I just talked to the real estate agent and it appears the actual neighborhood I'm in now is eligible for USDA loans, and he has worked with this loan before.  A couple of houses on my street were built within the last 10 years but are under $150,000.  I'm going to fill out the paperwork because it looks promising.  I do find it a bit weird to think I'm "rural" in the middle of a relatively new neighborhood where houses are built close together (not like 3 acre properties), but as long as it counts.

Current: 519
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