What hurdles can we expect when our loan goes to underwriting??

[Anonymous]

We are going with an FHA loan

-Our middle score is 641

-Income is $7380 per month gross

-Debt including mortgage is $2996

-DTI ratio 40.6%

-Job history myself 4 years at the same job

-Job history husband 11 months at the same job 10 years in the same industry (construction) a period of 4 months unemployment in early 08.  We have a letter from his current employer that there is steady work and no expected layoffs.

-2 collections on credit report: one for $114 from 2003 and one for $673 from 2005 

- Late payments on a car loan that was co-signed by me for an ex-boyfriend.  Last late in 8/2006.  I took over the loan payments in 9/2006 to avoid repo and made perfect payment until payoff.

-We have the downpayment plus $3000 in reserves.

We have been approved by the automated underwriter, but I am stressing out that our offer will get accepted, we will put down our earnest money and we could lose it if the loan is denied by FHA.  

Does anyone see a problem with this loan going through underwriting? 

[WannaHouse]

From what you have posted, it looks pretty good. Make sure you stay well within your $$ amount they approve you for and do not incur any more debt.

Good Luck!!

[Anonymous]

It looks good as long as nothing unexpected jumps up credit wise.  If you are running any balances on credit cards try to get them under 9% utilization to give you another little FICO bump for some more breathing room on that.  640 will work but is one unexpected derog from missing the 620 mark.  Otherwise you should be fine.

[happy0510]

Hi,

Congratulations.  Can you give details on the loan amt, etc.  I'm in California too.

[Anonymous]

Our loan amount is $127,000, but we are also paying $427 per month in HOA fees.  So it brings our total payment to $1338.

Our debt is high.  We have 2 $400 car payments, a $260 Harley payment, $60 student loan payment and about $550 in credit card payments.

If we didn't have so much debt we could probably go a lot higher and that is why our ratio is at 40.6% for debt to income.  Luckily we have found some really nice condos in our price range.

[Anonymous]

I am wondering if your husbands employement could cause a problem?  How does FHA look at periods of unemployment?

[Anonymous]

I am not sure how they will view the unemployment.  He is in construction,so that is pretty much the nature of the industry.  But it worries me.

Maybe and expert can give me some insight?

[Anonymous]

They will proabably accept his employment with that much time in the industry and what is bascily a year on current job.  But, they might want to average teh last 2 years income which will hurt as he was unemployed last year.  that may hit your DTI pretty hard.