Prospects of an FHA loan

[Caliche]

A little about my credit situation.  I have two low limit cc's with a $0 balance.   An open installment loan (Travel Trailer purchase) from my local bank with a balance of $13,400 no lates associated with this loan.  A cc charge off' from 2006(I paid the balance in full for the benefit of a potential manual review.)  A cc that was closed in 2009 with a 120 day late(settled for less than full balance.  Currently the only debt I have is for the open installment loan($13,400).  I have no collections or public records.

I am single and make $70,000/yr. and have had my current job for 3 years and 8 months.  Myfico scores have increased about 40 points each in the last two months due tips I have received here.  Fico Eq 664, Fico Tu 652 and these scores are based on 51% utilization on my revolving accts which has since been payed down to $0 but report has not been updated. I know 9% is optimal.  Not sure how to calculate DTI but I've stated my salary and my only debt.  I have $8,000 in savings and $8,000 in my 401k.  What are my prospects of being accepted for an FHA loan?  I'm also trying to determine what amount if any that I could potentially be funded...ballpark because I know there are many factors to determine that number.  Thanks for any input.  Also no late payments in the last 2 years.

[Anonymous]

Depending upon the payment on the travel trailer, as it is your only debt, you would probably be in good shape DTI wise and credit wise to get approved for an FHA loan. The amount you would qualify for would be limited by a few things, FHA loan limits for your county, the amount for taxes and insurance on the home also.

IMO the more important question would be what payment are you comfortable making each month? I feel in this economy, that is of the utmost importance.

Overall though, you appear to be in good shape.

[JM-AM]

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@Caliche wrote:

A little about my credit situation.  I have two low limit cc's with a $0 balance.   An open installment loan (Travel Trailer purchase) from my local bank with a balance of $13,400 no lates associated with this loan.  A cc charge off' from 2006(I paid the balance in full for the benefit of a potential manual review.)  A cc that was closed in 2009 with a 120 day late(settled for less than full balance.  Currently the only debt I have is for the open installment loan($13,400).  I have no collections or public records.

I am single and make $70,000/yr. and have had my current job for 3 years and 8 months.  Myfico scores have increased about 40 points each in the last two months due tips I have received here.  Fico Eq 664, Fico Tu 652 and these scores are based on 51% utilization on my revolving accts which has since been payed down to $0 but report has not been updated. I know 9% is optimal.  Not sure how to calculate DTI but I've stated my salary and my only debt.  I have $8,000 in savings and $8,000 in my 401k.  What are my prospects of being accepted for an FHA loan?  I'm also trying to determine what amount if any that I could potentially be funded...ballpark because I know there are many factors to determine that number.  Thanks for any input.  Also no late payments in the last 2 years.

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In my opinion I believe with that being your only debt you would qualify for 140K-170k depending on other factors insurance, taxes, plus a few small other things, and the qualifying limit in the area purchasing.  Good Luck 

[Caliche]

Thanks for all the feedback.  Now I will start to educate myself on the art of offers.  Hopefully there are some motivated sellers in the Salt Lake area although this market doesn't appear to be as depressed as some others.  My sis and bro in law put their  house on the market in North Carolina just to see if they could get something close to what they were asking...she mentioned yesterday no one even made an offer so they took it off the market.  Things have changed.