Will I get pre-approved?

[Etno]

My husband and I joined Navy Federal about 6 months ago. We have our checking and savings accounts there as well as his direct deposit. I am a full-time student and he works full-time at the same company for the last 2+years, salary $49,000. We are in our mid-20's. His scores are around 625-650, mine are at 650. We don't have a lot of tradelines (I have one credit card, he has 2) but I am hesitant about applying for more so close to applying for a mortgage. I have no lates, he has 2 lates from last summer on a student loan that was supposted to be in deferment but they won't budge on removing them. No other lates, no debts (5% reporting on the credit cards and I can pay those down to 0 at anytime), no car payment. Student loans are in deferment. We both have a few old collection accounts that were settled years ago and I have had no luck having them removed - those are the only bad things on our reports except a paid judgment of mine that's set to fall off late next year.

We would like to purchase a home this summer, and I have been looking at some properties on the Homepath site. Navy Federal is an approved lender for them, has anyone had a mortgage with NFCU for a Homepath property? What's the minimum credit score and downpayment for NFCU in general? We are looking at getting approved for about $140-150,000.

Thank you everyone for your input!

[JM-AM]

I do not see much from what you say that would not qualify you. Scores may be borderline, but there are a few lenders approving with a 620 mid score. You would prefer to be  around 640 mid score. They will use the lower mid score between you and your husband.

As far as your missed payments there are also a few lenders that will approve 1 missed payment 30 days late with in 6-12 months, once again depends on lender.

You dont mention if you are working and can help with income. While 50k yearly salary may get you approved for 140k-150k, this may be spreading yourself thin. If you are working and have a small salary even (p/t job), then you should be okay.

I can not speak for Navy Federal, but in my opinion I would talk with a LO in your local branch, and I would also speak with a few other lenders. Reason being each lender has their own requirements and while you may or may not qualify with a peticular lender, it is just being a smart home buyer to compare fees, rates, etc etc...

Good Luck

[tooleman694]

50k a year buying a 150k can be done, but I agree it is spreading yourself thin with a high frontend ratio.

I wouldn't do a high frontend ratio unless my income was double 50k.

But if you have a good budget you can keep to and you think your income will increase. Spreading yourself thin can be a rewarding risk.

[Etno]

Thanks for all the great responses so far! I have a small income on the side, approximately $600 a month but it's variable and I haven't had it long enough to use it to qualify for the loan. With our low debts and this extra income I am confident the payments will be fine. In our area this price range is a basic entry-level home, but to rent where we are renting (or anywhere decent that takes pets) is around $1,000/mo., so I do feel like it is worth it to buy at this time. I'm hoping the lates won't be a problem, I will keep trying to get them removed. I have heard that Navy Federal is more forgiving so I hope the old charge offs and lates are fine.

What kinds of downpayments and scores is FHA requiring now?

[JM-AM]

Down payment minimum of 3.5% For FHA.

Most lenders today are requiring 640 mid credit score For FHA loan.

There a few lenders approving 620 mid credit scores for FHA loans.

[MovingForward_2012]

An FHA requires 3.5% down but search for programs through the housing authority in your state. We are going to buy through a CHFA homebuyers plus program where we are able to roll 3% down plus closing costs into a second mortgage so we only have to come up with 0.5% for the first mortgage which is an FHA loan. You have to meet income limits (less than $103K for 3+ persons), and have to take a homebuyers class which is free. It is a great program and through it, we are able to get more house so look around for something similar in your state. FHA loans require 580-640 mid fico, typically. We have to go through the builder's lender and they require a 660.