Weighing between buying a house or moving into a nicer apartment

[last4ever]

Background, the negative:

2005 - dismissed ch 7 bankruptcy, house foreclosure, several collection accounts totaling aprox $1500.

2007 - Car repossessed, still owe aprox $3k

Since 2007, the positive:

4 credit cards, $0 balance (pay off each month)

No new loans, paid off all collection accounts

graduated with a BA in economics, starting a Masters program this fall

Secure stable Job (Since Jan), gross annual income is $62,000

Getting ready to marry my girlfriend of 2 years, once married combined gross annual income will be $120k+

Current fico scores:

TU - 620

EF - 586

EX - ?

We are currently living in a one bedroom apartment paying $1150 rent.  We both want to get a dog, and our current building doesn't allow pets.  Our options are to move to a more expensive apartment where rent would be $2000+, or possibly buy a house.  My question is what makes the most sense.  We have about $20k saved which can be used for a downpayment, but I'm just not sure if I could qualify for an FHA loan?

Thanks for your comments!

[Booner72]

I'm nearly certain your middle score will have to get up to 620.  I've read here that Wells Fargo will go lower, but haven't ready any posts where a person actually closed  a home with a score lower than 620.  You're close!

[Boldilocks]

With those rent prices, are you in NY by any chance?

If so, paid collections and judgements come off your report in 5 years instead of 7.  Using your savings to pay of the car that you had repossessed would get it off your report and bump your score.  I might be wrong, it's been a while since I was in credit rebuilding mode - but if I am someone will correct me!  :-)

[sassymomof2]

I know that paying the repo won't get it off your report. It would most likely be updated to paid repo which doesn't really help your score. #1 hopefully this bump will enable the pros to see your post to give you additional feedback & #2 go over to the rebuilding boards to get some help boosting your score. Many lenders use TU 04 not 98 which is what you get here. EQ is dead on. If you want to apply with you gf, you need to know her credit situation and scores too.