First of all, thanks to this site, I've gotten my Equifax FICO score from 550 to 631 and TransUnion up to 640 within 2 months!
So, we have been in touch with a local mortgage company and had already given her all my information and today told her to pull the trigger on the credit report. She emailed later with a pre-approval letter. We had told her the house we were going to build would be $295,000 maximum. The FHA loan limit in my area is $280,500. I'm thinking that we would have to come up with $15,000 for the downpayment to get down to the $280,500 FHA loan limit and that we would be well over the 3.5% minimum down payment FHA requires. In her letter she put that the selling price was $295,000, our downpayment would be $24,318 and the loan would be $270,682. I'm confused! I thought the maximum LOAN could be $280,500. Looks like she took 3.5% from the max $280,500, subtracted it from the $280,500 and made our loan become $270,682. That would make our downpayment $24,318 which we can't pay. Somebody please tell me she's wrong and that we can borrow the max amount and not 3.5% less than that? Btw, my DTI is only about 12% so I know thats not the issue. Thanks in advance!
