Will we qualify?

[Anonymous]

Greetings. I have browsed this forum for awhile and am finally wading it.. There is a wealth of knowledge here! 

I went today and applied for a Pre-Approval FHA loan as a first time home buyer. My wife and I are looking to buy a house around 140K. 

Here are our specs. If you need more let me know.

My Info.

Salary: 60K + 23K bonus this year.

Debt: School loans 7.5K, CC $1075 with 3150 limit. (3 cards total if that matters) Truck payment 438 

Job: 1 year.  

Savings : 28K

Plus Score 677

Wife's info

Salary: 31,200 

Debt: School Loans 10K CC 4500 with 10K limit (one card)

Job: 2 Years 

FICO score 700

We plan to put the 3.5% down and keep money in savings.  

Do you see any red flags? The LO said we should hear back by Monday. Am I just a nervous first timer??

Thanks all that apply! 

[Anonymous]

What are your student loan payments? What are your credit card payments?

[Anonymous]

Totals for both: Student loans 247

CC: 175 (This is if we just pay the min, although we never just pay that amount). I use my cards for work expense and pay off large amounts all month long. Normally I make 3 payments a month per card. 

[Anonymous]

Are you self-employed? What were you doing prior to your current job? They typically look for a minimum of 2 years in the same field. They'll also consider education as years of work history if you are working a job in the same field as your degree.

[Anonymous]

Not self employed, and have been in the same industry for 3 years. I have been with this company for a year and 2 years with the previous one. 

Thanks! 

[Anonymous]

Other than not being in your job for 2 years, I don't see any red flags. You can afford the house. When I did the calcualtion, it allowed over 2,000 for PITI payment. My mortgage is 155,000 and my PITI payment is 1150.

[Anonymous]

Thanks for the info. 

Is the job issue a deal breaker?

I will let you know what I hear on Monday.  

[Anonymous]

Depends on what you were doing before this job. Working in the same field? In school?

I don't think it is a deal breaker. They tend to look at files like a balance. When you are strong in some areas, they offset the occassional weakness in other areas. I just settled and I had not been at my job for 2 years due to a move but had been working in the field for 15 years and I had cash. Cash can cure a lot of problems.

[Anonymous]

You mentioned earlier you had been in the same field for 3 yrs, so i think you'll be just fine

[Anonymous]

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J-Bird wrote: 

My Info.

Salary: 60K + 23K bonus this year.

Debt: School loans 7.5K, CC $1075 with 3150 limit. (3 cards total if that matters) Truck payment 438 

Job: 1 year.  

Savings : 28K

Plus Score 677

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PLUS score? What's your FICO score?

PLUS scores are FAKOs (meaning, they're worthless and lenders *rarely* ever use them). You need the real deal and you can only get that here.

Also, you need both Equifax AND Transunion scores for you both (since you can't buy your Experian FICO score anymore). The lender will take the lowest of the yours and your wife's midscores and use THAT to decide whether or not you qualify. It might be that she will qualify and you might not (FAKOs can often be 100 points higher than the real FICO scores).

I'd really check that out. That could change the amount of house you should be looking for.

Unless you meant to say "FICO" instead of "PLUS?"