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FHA Approval Likelihood?

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jerrydurden
Established Member

FHA Approval Likelihood?

Hello,

 

I am wondering about the likelihood that I will or won't be approved for an FHA loan.

 

  1. Credit.  735+ all. No negative anything on credit report. Average length open is a bit over 4 years on all credit cards now.
  2. Income.  Currently 40,500/year, in 2-4 months going up to 43,500/year.
  3. Source of income.  Employment. Important note: I also make OT of approximately 4000/year, however see Employment notes below.
  4. Monthly debt payments.  Car payment of $301 (new loan as of December), student loan payment of $146.
  5. Employment. Working for the state now in my college degree field. Started 10/1/2010. Graduated from college in May of 2009. LOVE my new job, but the previous jobs didn't fit so well after college which is why I've only been at my new job 4 months now.
  6. Assets/Reserves. I have a few thousand in savings now. If I need it, I can get the 3.5% and closing costs from a family member. Of important note is that I qualify for a bond down payment assistance payment at closing through my city if I use one of their FHA lenders. I think I would opt for this and only be out of pocket closing costs (or nothing if sellers could include all of them in loan?)
  7. Location.  Louisiana, East Baton Rouge Parish
  8. Property.  Single family home
  9. Value.  Hoping to qualify between $100-140k
  10. Occupancy.  Primary residence
  11. Transaction Type.  first-time 30-year fha mortgage

 

So... anything else you need to know? What are my chances? 

 

Thank you!

Nate


Starting Score: 474 7/2007
Current Score: 688 6/2013
Goal Score: 800


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Message 1 of 3
2 REPLIES 2
BrianB_The_Loan_Professor
Valued Contributor

Re: FHA Approval Likelihood?

You should have no problem qualifying for up to 140k - probably more

Your debt ratios are fine

They would not count the OT because of the short time on the job

The banks need to see 2 years history for commissions and overtime before it can be counted

You do not need it though

You have $447 in monthly debt and at 140k you are only looking at around 1k a month payment for everything maybe 1100

that puts you less than 50%

You have stellar credit which should allow for a slightly higher debt ratio

As long as you have the 2 year same line of work

The 3.5% for the down payment

Can get the seller to cover the closing costs or get enough cash to cover them as well as the down payment

you should be fine to get a loan and thats using the current income.

Good Luck

Brian

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Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly
Message 2 of 3
jerrydurden
Established Member

Re: FHA Approval Likelihood?

Great! Thanks Brian.

 

Of course, the main part I'm worrying about is the job history.

 

Regarding monthly payments, I have another payment I make for a medical credit card of $140 a month and it will be paid off in October '11, however the reported minimum payment is only about $40 a month... I am paying it off at $140 a month to keep the 0% intro rate they gave me. Would that be considered, then, in my DTI? And if so, would it change anything?

 

Another question: 

 

I will have someone living with me who, no matter where I live, is willing to sign a 2 year lease ahead of time (very good friend). He will pay half the monthly payment. Is there a way to incorporate this into the loan information? Does this even matter?

 

Thank you again for your help,
Nate


Starting Score: 474 7/2007
Current Score: 688 6/2013
Goal Score: 800


Take the myFICO Fitness Challenge
Message 3 of 3
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