Mortgage Loans

[delybe]

My credit score is 650, will I get approved for a FHA Mortgage loan?

[tooleman694]

Depends on what kind of bad stuff you have recently on your report and if your income and DTI works.

[delybe]

No collections and 29% credit card utilization with income of $100K and house purchase of $160K

[Mike_B03]

Is that your middle score out of the three bureaus or your highest one? When applying for a mortgage, they pull all three scores and use the middle score. The score needs to be above a 640, which yours is, so you should be ok there. The question is, as already mentioned, what other things are on your credit and what is your income/debt ratio. If you have had foreclosures/short sales/bankruptcies recently, that could be a road block, but it depends on how recent they were.

[delybe]

I have no collections.  I do have balances on the credit cards at about half the limit.  I am not sure of all 3 of my scores.  That score just shows up on creditkarma.com

[delybe]

I just figured my DTI will be 32% with the new house payment.

[Mike_B03]

Don't go by Credit Karma. Get your scores from MyFico.com.

My Credit Karma score is 633, while the TransUnion credit score pulled on my mortgage application was 557. Luckily my Equifax was 672 and Experian 642.

As for your debt to income, did you calculate all monthly debts that you owe...credit cards, auto loans, student loans (even if deferred), store cards? If 32% is your true DTI (including the new house payment, insurance, HOA fee, property taxes, and all other monthly debts) then that is very good, you need to generally be at 43% or lower though some lender will go above that by a generous amount.

[tooleman694]

100k a year income and a 160k home, yeah your DTI should be very low.