Some ?'s for the experts...

[nmorton79]

This is for ShaneTheMortgageMan, DallasLoanGuy, or anyone else who may have some expertise.......

I know that you've heard some of these ?'s a million times already, but my 5 month old is not being very nice to me tonight, so I don't have alot of time to comb the threads for the answers like I would like to.

So here I go.....

1) I saw on a infomercial (the Monthly Mortgage Report) that FHA "never relies on a persons FICO score to qualify for a loan".  If that was really the case, then why do they want a 580 score?.  This infomercial also stated that FHA Secure will also help 1st time buyers.  Is that true(that you know of)?

2) How long a histiory of bank statements and how much in reserves do they require? What counts as reserves besides checking and savings?

3) If I have a judgement, can I be in repayment, or does it have to be paid in full before I apply for a loan?

4) I am staying home for the baby's 1st year.  Can I get on the loan if only my husband is bringing in income?

5) One last ?...does anyone know alot about the different HUD programs? If so, my husband is a Corrections Officer in Raleigh, NC, and we currently live in a revitalization area and would like to stay there, so would he qualify for the Good Neighbor Next Door Program?

My sincerest thanx to anyone taking the time to read and answer my ?'s.  Any advice is greatly appreciated....

[DallasLoanGuy]

FHA takes FICO into consideration.... but it also grades the credit itself. This info, along with DTI, savings, ect go into what is the Total Scorecard that approves you or refers you to a manual underwrite.

Lenders, not FHA, require certain scores. Below 580 gets a hefty adjustment to the rate. 580-620 gets a minor adjustment.

You will be asked for 2 months reserves statements. This is for seasoning. If they see a large deposit within the last 2 months then those dollars aren't seasoned and must be sourced. If from an acceptable source they can still be used. Acceptable sources would be family gift ot regular earnings or even selling an asset.

Reserves can be checking, savings, money market, stocks, bonds, retirement(if liquid). Basically any money in the bank or a security instrument that can be liquidated in emergency. Most 401Ks work but some retirement accounts do not since you cannot get to the money unless you die or leave your job.

You can absolutely get a loan with one income.

Talk to your realtor about Good Neighbor Next Door. Only certain HUD owned homes qualify

[nmorton79]

Thank you very much!!!