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FHA for low income possible

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Anonymous
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FHA for low income possible

Hi all I've been searching high and low for someone who could be maybe in my shoes but have been unsuccessful so far so sorry if this is a little LONG. My conclusions thus far are I might need to do USDA or maybe NACA. PLEASE help thanks in advance 😁

A little background im a single parent of 3 kids living in Louisiana and am a customer service manager at Wal-Mart. I've been at Walmart for over 3 yrs and have kept a steady check at 2100 gross a month. I have been doing heavy repair on my credit that I demolished by not paying my student loan debt and doing wayyy to many inquires for cards. I have 4 collections that will all be paid to $0 next month. Last year my FICO score was a depressing 415 and I had to put down a big down payment to get a car which got the ball rolling. 7 months of on time payments boosted my score to 550s where it just stayed until u applied for a 2 secured cards(thanks to the forums or I would've never known about rhem😚) a Fingerhut account and now an installment loan with Conn's. These have boosted my score to what is now ex 590 tu 618 eq 608. I have to drop my uti to the 9% I spiked it during Christmas and didn't pay down in time reporting now 50%. I'm in the rehabilitation process for my defaulted loans I have 3 more payments until I'm done and will pay off the loan when I'm finished just need to get the baddies off and loan in good standing. I own my trailer and don't pay rent the only obligations I have are my car which is $415 a month (thinking about refinancing I'm paying 22%apr right now😔) and my cards that are $35.

I really want to do a home and land package through FHA with a manufactured home for $120,000 just don't think I will have enough income to get qualified. I have $6000 saved for the down payment.My current DTI is 21% and hopefully with refinancing I will get a better Apr rate and it will significantly lower my payments.

What would be my best options 🤔
Message 1 of 3
2 REPLIES 2
StartingOver10
Moderator Emerita

Re: FHA for low income possible


@Anonymous wrote:
Hi all I've been searching high and low for someone who could be maybe in my shoes but have been unsuccessful so far so sorry if this is a little LONG. My conclusions thus far are I might need to do USDA or maybe NACA. PLEASE help thanks in advance 😁

A little background im a single parent of 3 kids living in Louisiana and am a customer service manager at Wal-Mart. I've been at Walmart for over 3 yrs and have kept a steady check at 2100 gross a month. I have been doing heavy repair on my credit that I demolished by not paying my student loan debt and doing wayyy to many inquires for cards. I have 4 collections that will all be paid to $0 next month. Last year my FICO score was a depressing 415 and I had to put down a big down payment to get a car which got the ball rolling. 7 months of on time payments boosted my score to 550s where it just stayed until u applied for a 2 secured cards(thanks to the forums or I would've never known about rhem😚) a Fingerhut account and now an installment loan with Conn's. These have boosted my score to what is now ex 590 tu 618 eq 608. I have to drop my uti to the 9% I spiked it during Christmas and didn't pay down in time reporting now 50%. I'm in the rehabilitation process for my defaulted loans I have 3 more payments until I'm done and will pay off the loan when I'm finished just need to get the baddies off and loan in good standing. I own my trailer and don't pay rent the only obligations I have are my car which is $415 a month (thinking about refinancing I'm paying 22%apr right now😔) and my cards that are $35.

I really want to do a home and land package through FHA with a manufactured home for $120,000 just don't think I will have enough income to get qualified. I have $6000 saved for the down payment.My current DTI is 21% and hopefully with refinancing I will get a better Apr rate and it will significantly lower my payments.

What would be my best options 🤔

It depends on what your housing expense would be including property taxes, homeowners insurance, and HOA (if applicable).  Do you have any idea of what those items would cost?  

 

If your income is $2100 gross per month then your housing payment needs to be under $965.79 per month.  I don't think that is possible with the purchase you plan at $120k.  Based on what you stated, you can get an FHA mortgage, just not at $120k. However, I am not a loan officer. I am a Realtor. I do know that lenders will provide an FHA mortgage with your scores - not all lenders, but many will go down to a mid-score of 580.  I am also assuming that you are using your FICO mortgage scores and not your FICO 8's, right?

 

Don't be afraid to talk with a loan officer. Do find out what their minimum requirements are score-wise before you make an application.  Each lender can have tougher requirements than FHA so you want to make sure the lender you are using has the ability to approve with your current scores. Don't go to a big box bank. They have much tighter criteria IME.

 

 

Message 2 of 3
Anonymous
Not applicable

Re: FHA for low income possible

You may be able to get under 965.00 with s loan as our loan is 167000 and is 1034.00 a month. Lots of variables such as taxes and insurance which play a big part of the cost of a loan as they are ongoing expenses and since they are annual divided by 12. HOA is the same annual and divided by 12 so can eat big time into your DTI. As for the income allowing for the amount you would like, I am not sure about that. USDA direct has subsidies to help with lower income.
Message 3 of 3
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