do we qualify

[Anonymous]

1. Credit  682, 678, 675  - 1 paid judgement from 5/07 showing paid 1/08, 1 charge-off  3/2004 showing paid 5/06, 1 from March 2006 showing debt sold. Paid the collection agency but this is not showing on report.  4 car loans dating back to 2002 - present one 6 months old -all paid as agreed no lates. 2 credit cardsfrom credit unions. 1 with $2000 limit , $300 on it. One with $10,000 limit, $8500 balance. 1 paid in full no lates personal loan.   Wifes scores are slight higher. 690 mid number. 1 paid in full never late personal loan, 4 credit cards about 70% utilization 
2. combined $109,500.00 - employment - salary basis
3. Monthly payments presently $558.00 car and approximately $600.00 credit cards
4. Employment= both full time, 2nd job, etc.- Me - 8 months at presnet jobe, 6 and a half years previous. no breaks. industry almost 20 years no breaks. WIfe 6 months present job. Was unemployed almost a year prior. Before that 9 months with year and half unemployment previous. Prior ot that steady employment. Recession hit her industry hard.
5. Assets/Reserves.  - $26,000 savings / $36,000 401K. 
6. Location.  essex cty , NJ.
7. Property.a single family house. Good condition
8. Value.  $300,000 - sell price $280,000
9. Occupancy.  Primary residence.
10. Transaction Type. - looking at FHA Loan as do not want to use 401K and all of our savings

[tooleman694]

If I were in your shoes I would be looking at conventional and not FHA.

[Anonymous]

You are almost identical to my husband and I and we're closing on Wednesday.  Our home was a little higher priced than yours, we're FHA at 3.375.

Good luck!

[Elcid89]

I'd say that your chances of approval are decent, but you really need to get that 70% utilization figure down to something more realistic.

[webhopper]

Why are you carrying credit card debt while sitting on 26k in savings? Are you doing some sort of 0% interest thing?

Anyways... pay the credit cards down to less than 9% utilization on 1 card... all other cards should be zero when you apply. Take a look at doing a conventional morrtgage as it will be cheaper in the long run...

You guys can also take a look at consolidating all of the credit card debt into one personal loan through a local credit union.

[webhopper]

Getting those credit cards under control should bump your scores high enough for a conventional mortgage...

[webhopper]

Conventional mortgages can be made with 3% down payment

[Anonymous]

Folks are correct, our utilization was only at 6% - take some savings and pay down your debt and you'll be golden!