Opinions on getting approved

[Anonymous]

So to start with the details, my EQ as of last month was a 642. I currently gross 50k a year and have had my job for 3 years. I have no rent/mortgage at this time, rent is part of employer compensation. Also no car payment.  Listed below are all acc's or money owed.

CC opened 12/10 $375 balance with $500 limit.

CC opened 5/11   $314 balance with $500 limit

CC collection 1/06 $0 balance  paid in full.

Student loan 1/02 $736 balance never late, $50 payments monthly.

Student loan 2/02 $0 balance account was sold and payments have been made on time since, but shows neg mark on FICO.

Medical 9/08 $636 balance, in process of setting up payment plan.

Wells Fargo Auto $0 balance, REPO that I paid off in full.

Back owed child support of 9k that is payroll deducted. 

 What I am looking at buying is a property, half acre with a 4 year old mobile home that was appraised at 96k 5 years ago, 1 year before new home went on property. The land owner is asking 35k, would the fact that the property is appraised for so much more than the selling price help in getting approved??

Also, the 2 CC's will be paid off this month, so I will be looking at buying the property in January to give the paid off balances time to improve my FICO. I would appreciate any feedback or advice with this situation. Thank you!!

[Scope27]

Dont assume previous appraised values due to the crash of the market.  My coworker bought his house at 160k three years ago and its worth 120k now.    It also depends on what loan product you are going with and how much you are paying down.  When I put an offer on a house, in my contract I stated I have to be satisfied with the house appraisal in case it appraises for less then my offer can go down.  Plus my loan will only cover up to the appraised value that is why I had to put that in my contract.    Best scenerio is to pay your total cc utilization to <9%.  Is your medical debt in collections?  If not set-up a plan to get it paid before it does.

[Booner72]

Hi - How long ago was the REPO?

How long have you been making ontime payments for child support?  Is child support reporting?  Are the payments you have been making the full amount due plus arrears?  Apparently FICO doesn't score child support, but I know from firsthand experience that the bank will want to have receipts/proof of the on-time payments (I'd guess at least for 12 months, esp. since there is back-due amounts).

Sometimes mobile homes are harder to get financing on, depending on their age, etc, esp w/ FHA loans.

[Anonymous]

Child support has been paid on time since the order was put in place, which has been 3 years now. Before that I paid with checks and have bank statements to back it up. The reason for the amount of back owed support is that for 8 years I just paid an agreed amount, when an actual order went into place the court said I hadn't been paying the right amount so I was hit with arrears. I understand that the market is not that good right now, but even if the property is dropped to say, 60k, wouldn't the bank still see it as a low risk loan?? If I was to not make the payments, they would still have a property valued more than what I barrowed. Or does it not work like that??

Thanks for the help, I've never bought land so this is new to me.

[Booner72]

Hi - Nah, it doesn't work like that.  You have to be qualified whether it's for a 50K house or a 500K house.  (The house we wanted was sold in 2007 for 253K and we were offering 105.  That house didnt work out - but the point is, the lender didn't care - The banks concerns about the price is when it comes to making sure it works for your DTI and to make sure it appraises).

if you don't think you're there yet, just keep saving, get your credit cards paid OFF, (Leave one reporting tiny balance) and SAVE UP.  Time goes by pretty quick, and houses aren't going anywhere.

EDITED:  To add something