FHA/USDA;Does this sound about right?; And what about First time home buyers assistance?

[Anonymous]

Hi all I have been working on my credit for a while now and have also been working with a credit repair company and mortgage company. Last week the mortgage company updated my profile (pulled my scores) and said I had finally been approved. They said my middle score was 635 and they just needed a 620. I requested a copy of my scores because I would like them to be higher when I am ready to purchase. Okay so here it goes I think they said my interest rate was 5.37 I think that is too high and in my opinion I think I should wait at least until my score is higher and I can get and lower interest rate. The mortgage guy said even if my score got higher my interest rate woudn't get lower in fact he said it would go higher. Which is crazy to me from what I have read on here. Also he said I was approved for FHA 3.5% down which is awesome yay!. But he gave me these numbers does this sound accurate? He said 89K home would be $8,400 down including closing costs and $800 mortgage with insurance and taxes I guess. Or $120K $9,200 Down including closing with $1005 mortgage with insurance and taxes. Also I tried qualifying for USDA Direct last year and was denied becuase of my horrible credit report of course. Since then of course I have had things settled and or removed. Is it possible that I can be approved? Of course I would wait for the magical middle number "640" and up before I apply. However now that I know FHA would approve does this mean I would be approved for FHA Direct?

This is my situation:

"635" Mid mortgage score

CKTrans 619/Equi 648/ experian.com 667

50K yearly salary plus OT and Bonus $53-55K

$664 car payment

credit cards %10 usage

Adstro Recovery (speedy cash) $728 closed charge off

First national bank $612 closed charge off 

Medical bill $358 collections removed from 2 bureaus except experian

thank you all for your responses!

[me12345]

What rate do you think you shoud have had?

[Anonymous]

i'm not sure about what I should have because I honestly don't know enough. From what I have read on here I see many ppl seem to say 4% interest is good. However I am going for FHA so I don't know if that matters or not. 

[me12345]

High 4's would be about right for a "Par Rate"..... If they are charging you a Discount fee OR an Origination fee then that rate is way too high, If they are giving you a "Lender credit" it could be about right.

Thanks,

[Anonymous]

I'm not sure, they didn't mention any of that. At what point would that be mentioned? Should I be asking? 

[me12345]

3.5% down on an FHA purchase of $89,000.00 would only be $3,115.00, what is the other $5,285.00 for?

Sounds like a lot of fees for the rate and loan amount.

I would get a "Breakdown" of all the fees...Ask them for a "Loan Estimate"

Thanks,

[Anonymous]

thank you I will do that. I honestly thought it was a little high too but like I said I have no idea of what to expect.

[me12345]

However, you cant go by what you see on these boards about rates....

Rates have moved up almost a full point from just 6 months ago...and there are so many different loan programs out there that have different rates, and then factor in Property Types, Down payment amounts, Credit Scores, and the fact that rates change every day.....literally no 2 deals are alike.

Thanks,