Question on Qualifying for a Mortgage

[kevinlw1974]

OK, so I am wanting to buy a house soon for the first time. here are my details.

According to this site the scores that are most commonly used for Mortgages are:

688

702

674

I have 5 credit cards and I do not carry any balance on those.

I have one judgement from 5 years ago that was paid off.

I currently have one collection that is $211 that i am going to try and get a pay for deletion.

I have no other debt and 30k in a 401k and about 1500 in a growing emergency fund.

I make 60k a year.

The house I am wanting to buy is worth about 170k but I can get a decent deal because I know the owner. I'm actually renting it from him right now.

What are my chances with an FHA? I also qualify for a VA loan as well. What would be the best route?

[Anonymous]

---

@kevinlw1974 wrote:

OK, so I am wanting to buy a house soon for the first time. here are my details.

According to this site the scores that are most commonly used for Mortgages are:

688

702

674

I have 5 credit cards and I do not carry any balance on those.

I have one judgement from 5 years ago that was paid off.

I currently have one collection that is $211 that i am going to try and get a pay for deletion.

I have no other debt and 30k in a 401k and about 1500 in a growing emergency fund.

I make 60k a year.

The house I am wanting to buy is worth about 170k but I can get a decent deal because I know the owner. I'm actually renting it from him right now.

What are my chances with an FHA? I also qualify for a VA loan as well. What would be the best route?

---

VA if you can. Rates will be similar to FHA but you can go zero down and also not have to pay mortgage insurance.

[kevinlw1974]

---

@Anonymous wrote:

---

---

VA if you can. Rates will be similar to FHA but you can go zero down and also not have to pay mortgage insurance.

---

I know you can't says yes definitely, but do you think I have a shot at qualifying?

[Anonymous]

---

@kevinlw1974 wrote:

---

@Anonymous wrote:

---

---

VA if you can. Rates will be similar to FHA but you can go zero down and also not have to pay mortgage insurance.

---

I know you can't says yes definitely, but do you think I have a shot at qualifying?

---

Yes, as long as you don't have a boatload of debt.

[2b2rich]

---

@Anonymous wrote:

---

@kevinlw1974 wrote:

---

@Anonymous wrote:

---

---

VA if you can. Rates will be similar to FHA but you can go zero down and also not have to pay mortgage insurance.

---

I know you can't says yes definitely, but do you think I have a shot at qualifying?

---

Yes, as long as you don't have a boatload of debt.

---

define 'boatload'..

[Anonymous]

You don't want to go through the FHA route in this economy because the interest rates will only get higher and you won't have a change to refinance. I would reccomend that you take 10k out of your 401k and apply for a conventional loan with PMI (it can be done with 5% down). Since you said that you can get a good deal from your current owner, your appraisal would probably come out higher than the sales price, so you'd have to pay PMI for only a few months. Don't go for major banks when searching for a mortgage, go for the smaller guys because they are faster and more easier to work with. I'd be quick if I were you because the FED MAY RAISE RATES THIS WEEK.