Do we qualify for a mortgage?

[terilou2]

Credit.  Me: EQ 693, TU 725, EX ???; Spouse: EQ: 600, TU 641, EX ???
Baddies: For me, 1 or 2 unpaid collections still showing from 2005 set to fall off by April or so. No late payments or anything negative since 2005. For spouse, 2 or 3 30-60 day lates from 2007. Some student loans showing 120+ days late in 2008 and again in 2010. 1 30 day late from March 2011 from an AU account of his mother’s that he didn’t even know about. She set it up to help him out back when he was in high school. Account is closed now.
Income.  Combined gross income of $141k (after a recent raise)
Source of income.  We’re both salaried employees. He does some consulting on the side ($2-3k per year) and I have a direct sales business that brings in another 4-5k a year so far, but none of that income is counted in the gross income above, just to keep things “safe.”
Monthly debt payments.  Student Loans, Auto Loans, and Credit Cards combine to $1730/mo
Employment W-2’d, full time for bothof us. I’ve been in my current job for 5.5 years, he’s been at his for 3.5 years.
Assets/Reserves.  I have $14k in a 401k, he has about 4k in an IRA. We have about 5k in savings now, but could probably borrow from family if needed.
Location.  Looking in Chicago.
Property.  A single family home or townhome would be a dream, but may be more likely looking at condos in our price range.
Value.  Not sure what we could qualify for. We’d be comfortable budget-wise with total payments of up to $2,300 or so. Not sure if the bank would be comfortable, but we paid that in rent at lower incomes for both of us and we were comfortable.
Occupancy.  Primary residence
Transaction Type.  Purchase

[JM-AM]

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@terilou2 wrote:

Credit.  Me: EQ 693, TU 725, EX ???; Spouse: EQ: 600, TU 641, EX ???
Baddies: For me, 1 or 2 unpaid collections still showing from 2005 set to fall off by April or so. No late payments or anything negative since 2005. For spouse, 2 or 3 30-60 day lates from 2007. Some student loans showing 120+ days late in 2008 and again in 2010. 1 30 day late from March 2011 from an AU account of his mother’s that he didn’t even know about. She set it up to help him out back when he was in high school. Account is closed now.
Income.  Combined gross income of $141k (after a recent raise)
Source of income.  We’re both salaried employees. He does some consulting on the side ($2-3k per year) and I have a direct sales business that brings in another 4-5k a year so far, but none of that income is counted in the gross income above, just to keep things “safe.”
Monthly debt payments.  Student Loans, Auto Loans, and Credit Cards combine to $1730/mo
Employment W-2’d, full time for bothof us. I’ve been in my current job for 5.5 years, he’s been at his for 3.5 years.
Assets/Reserves.  I have $14k in a 401k, he has about 4k in an IRA. We have about 5k in savings now, but could probably borrow from family if needed.
Location.  Looking in Chicago.
Property.  A single family home or townhome would be a dream, but may be more likely looking at condos in our price range.
Value.  Not sure what we could qualify for. We’d be comfortable budget-wise with total payments of up to $2,300 or so. Not sure if the bank would be comfortable, but we paid that in rent at lower incomes for both of us and we were comfortable.
Occupancy.  Primary residence
Transaction Type.  Purchase

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If you apply for an FHA loan you have a chance to qualify. No more late payments on anything! 

Even though the collections will be removed soon if applied now the lending institution and or bank may want you to pay the collections.

You may be borrowing from family if necessary but as far as mortgage is concerned they would have to gift it to you and sign off that it is a gift and does not have to be repaid. But since in reality you were just borrowing it make sure you hold up to your agreement and pay it back.