Do I have a chance of getting approved for a FHA loan with not too high of an interest rate?

[weathergirl77]

I want to buy a condo that is in the $60,000-75,000 range.  My income is $27,000 a year, I filed bankruptcy in 2003, My current FICO scores are 699 and 711 for Trans and Equifax but they did not offer Experian in the FICO kit I used and wonder if they now Experian because they are not with FICO anymore.  I have no car loan but $4,000 in credit card debt.  I can put down 3% for a downpayment but hoping I can get help with closing cost.  I am semi disabled and want to buy a condo with low HOA and I know the area I want to live in that has lower taxes. I have 9 years of not being late on my rental history and have never been late on all utilitiy payments and credit card payments except when the lawyer told me to stop payments on the credit card payments while filing bankruptcy but I think those are off my credit report so just the bankruptcy is on there.

I have been renting a townhouse for the past 7 years and have been paying all utilities so I am used to it.  I would be looking for a condo to be on one floor because I can't walk up and down stairs anymore.  I guess I have two questions:

1. Do I have a good chance of getting a mortgage approved ?

2. My lease is up May 31 next year so when should I get prequalified and start looking if I want to close mid April or beginning of May?

Thank you all who took the time to read this and reply!

[Anonymous]

FHA is going tobe your best bet.  3.5 minimum percentagte down.

It is going to depend alot on HOA fees and real estate taxes.

27K is 2250 per month in income.  I will assume 150 pre month CC payment (might be high, not sure)

So standard DTI ratios are 31/43% (housing.all debt) which equates to = 700 for housing and 967 for all debt.

Assuming you get a 30 year fixed FHA loan (5.25%) and get sellers to pay closing you would be looking at:

400 mortgage principle and interest

40 Mortgage indurance

40 home owners insurance

120 property taxes

100 HOA

total 700.00

So, if all the fees fall in line you could very well qualify.  But, HOA's are tricky.  I have seen some at 3-400 pre month on a fairly inexpensive condo.  Also, often older condos have higher fees because they require more maintenance and often haven't been funded well throughout the years and are playing catch up. 

You also have to make sure the condo community is an FHA approved condo community I believe.

If the taxes and HOA's are similiar (not too much more), you stand a decent chance.  The only thing I am not sure about is if there are any minimum income levels for mortgage companies.  For example, most major car lenders will not accept your application if you make less than 1800 per month.

[weathergirl77]

Thank you very much for your reply!  Actually the HOA are $125/mo in the area I want and I now pay rent of $735 with and pay all utilities with a $30/mo water and sewer bill.  The taxes are a lot lower in the area I want to buy as well and are about $1,800-$2,300/yr for a $70,000-75,000 condo.  So I would have to make sure the community is FHA approved.  I am very good with money and the reason I filed bankruptcy in 2003 is because I was in a serious car accident and was in a wheelchair for 3 years and now have a perm condition from the accident and I hate I had to do it but there is nothing I can do about it.  I just want to move to a condo in a nice area that I can afford.