Very low income student looking for cheap first home with FHA loan. Do I stand a chance??

[Anonymous]

My mid score is 611. I have credit cards which are at 72% usage, however I just (today) paid some towards them  which will bring utilization down to 27% I am very low income. I gross about $1800 a month from one job and $550 a month from another job. I only get paid from 2nd job while schools in session. (10 mos)

I have $78,000 in student loans that are deferred until six months after I graduate. My car note is $300. Ater those cards are paid off I'll have $66 a month in credit card debt.  II have $450 set to come out in 3 days to pay for a medical collection after which the collection agency has agreed to remove these items. After this I will have two remaining collection accounts. One for $173 and one for $1000. Will these need to be paid? 

I have $6000 in savings. Have 1 year of on time rent payments. No late credit card payments. I'm concerned about tiny income and debts. Next is credit score. Hoping to see a good increase with the payment of those credit cards and the removal of the two collection accounts. Would any lender be able to work with such a bleak set of circumstances? Am I stuck renting??

[Anonymous]

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@Anonymous wrote:

My mid score is 611. I have credit cards which are at 72% usage, however I just (today) paid some towards them  which will bring utilization down to 27% I am very low income. I gross about $1800 a month from one job and $550 a month from another job. I only get paid from 2nd job while schools in session. (10 mos)

I have $78,000 in student loans that are deferred until six months after I graduate. My car note is $300. Ater those cards are paid off I'll have $66 a month in credit card debt.  II have $450 set to come out in 3 days to pay for a medical collection after which the collection agency has agreed to remove these items. After this I will have two remaining collection accounts. One for $173 and one for $1000. Will these need to be paid? 

I have $6000 in savings. Have 1 year of on time rent payments. No late credit card payments. I'm concerned about tiny income and debts. Next is credit score. Hoping to see a good increase with the payment of those credit cards and the removal of the two collection accounts. Would any lender be able to work with such a bleak set of circumstances? Am I stuck renting??

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You need atleast 620 score to get approved for decent rates.  But your $78,000 student loan debt is a deal breaker. You won't get approved with your current income.   You are stuck renting for now.   

[Anonymous]

You will typically need two year work history with two jobs to be able to use both sources of income. If you have that, your max housing payment could be around $800 (principal, interest, tax, insurance, mortgage insurance) to keep your total backend debt ratio below 50%. With that being said, you would need to go FHA, prove your student loans are deferred for at least 12 months after closing, AND get an FHA case number (be in contract) before 9/14.

Seems like it will be hard to meet all of that criteria. Is a co-borrower an option?