Do i qualify for conventional loan?

[stefnian0426]

Hi all!

Do you think i would qualify for a conventional loan? 

First time home buyer, single family, primary residence. New Jersey

experian score-690 aug/2014)

TU- 646 (checked 2 months back)

3 credit cards-

1. bank of america. 3 late payments. paid in full/closed. from sept 2012

2. victoria secret- 750$- current bill $50- opened june/2014

3. cap one secured card- $400. current bill $50- opened april/2014

Inquires-

Bank of america- oct/2012

bank of america- june/2013

capital one- april/2014

$0 collections, judgements ect.

I have been at my job for over 5 years. I do get 1099. $43k per year. 

Alter. credit- Phone bill since 2012, car insurance since 2012, motorcycle insurance since 2013, rent rec. since 2009.

Looking to purchase a family members house for $150k. Was hoping to get 160-170k so we can take a down payment out of that.

The septic is in working condition but needs replacing which is why i prefer conventional as fha may be to much of a hassle.

Was hoping to wait until january 2015 however i would hate to have someone else come in and buy it.

What do you think my approval odds are?

[StartingOver10]

Since you are a 1099 type self-employed person, what will be the determining factor is the income you report to uncle sam after your business expenses. What have you been reporting for 2012 and 2013? The lender will average that income over the last two years (usually).

[stefnian0426]

My employer doesn't take out taxes which is why it is 1099. However i work for him everyday. I use his vehicle, gas ect. so i end up not writing off anything.

I do claim my 2 step kids and my son if that makes a difference which brings down the price of what i owe at the end of the year (2013  i owed a little over 500)

[ShanetheMortgageMan]

Your debt to income ratio shouldn't be an issue on the amount you are looking to finance.

Credit scores are kind of all over the place, it'd be interesting to see what scores come up with when yours is checked by the mortgage lender.  Looks like your past credit history should be fine though.  I'd make it a goal to have a 680 middle score in order to qualify for decent rates with conventional.

[stefnian0426]

I am hoping to get all scores up to 700. 

Planning on purchasing a home from a family member come january. 

The septic needs to be brought up to code which is why i was hoping for a conventional loan to avoid the hassle of FHA requirements, but also considering it because of low down payment.

If i have saving between 1000-2000, would that be a hurting factor with a 150k loan?

Hoping to put closing costs in loan.