IF approved how much loan will we get?

[Tay09]

Here's another how much will I get post...sorry!

I've been battling for a few weeks on whether to apply for a mortgage. Our scores are TU 677/653 and EQ 645/683 so I'm not even sure we will be approved.

Anyway, our monthly debt is $1470 which only includes things on our credit report such as student loans, car payments and credit cards. Our yearly gross combined is $95K, we would do a USDA guaranteed loan, our income is within the limit for where we want to live in NY. I am looking to purchase a home for no more than 250K.

We need to relocate before the end of the year since my husband changed jobs and the commute is costly. So we need to make a decision soon but I'm nervous we won't get approved and would have added unnecessary inquiries on our reports.

[MovingForward_2012]

$250K is reasonable with your income and associated debt. You make about the same as I do but you have twice as much debt as I do. I purchased a home for $100K more than you. So I think if you stick with a max of $250K, I foresee no issues. Your scores are good and as long as you have at least two years of employment history, you should be fine going FHA. You typically need a min of 680 for conventional and a 640 for FHA. But just keep in mind that what I said depends upon property taxes, PMI, interest rate, HOA, and homeowner's ins all lining up within the max DTI back end ratio. Personally, I would get a jump start now as the new FHA rules starting April 1st will raise PMI from 1.25% to 1.35% and this will cut into your back end ratio. Additionally, beginning June 3rd, PMI will be required for the life of the loan versus to 78% LTV.