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fha Loan for low income

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Anonymous
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fha Loan for low income

I am only going to make like 16-18k this year, and made the same low amount in 2011, (2010 and 2009 i made 30k salary a year)  with the job change i am hourly, but full time with benefits, but its only $10 an hour,  is it going to be possible for me to get a fha home loan on like a starter home 40-50k range? i figure even though i dont make money anymore if its full time, consistant and the homes cost is low it wouldnt look as bad.  I have excellent cash reserves, i am working on my credit(its not good atm, but i have been building it perfectly for 6 months now) I have no student/auto loans or other debt.   Do banks only consider how much your debt to income ratios, down payment and cash reserves are for fha as far as money goes, or are they going to sneer at me in general because im below the poverty line?

Message 1 of 5
4 REPLIES 4
IOBA
Senior Contributor

Re: fha Loan for low income

IMO, you should be ok.  They will look at cash down (how much can you put down - the more the better), the DTI (no more than 25-30% in general and this includes mortgage, taxes, and insurance), cash reserves, credit, assets, and the chances of continued employment.  

 

Play around with the mortgage calculators on the website,   Plug in your numbers.  The calculators can tell you how much you can afford.

 

If you give us a better idea of what you are looking at, we might be able to provide better information.

 

* how much of a down payment

* credit score

* where are you looking to purchase

* what kind of home?  (mobile, stick built, condo?)

* HOA fees?

* condo fees?

* about what will property taxes be?

* are you likely to be employed for the next 2 yrs or 5 yrs?

* how long in your current field?

* how long in your current job?

 

 

Message 2 of 5
Anonymous
Not applicable

Re: fha Loan for low income

i have a 'thin file' still waiting for fico score to generate (should generate this month i just didnt have any tradelines open, but this would make it 7 months now i had my cc's open/i took them out solely to build my credit for a home loan)

 

I know you typically dont need much of a down payment for a FHA loan, but i can put up to 15k down if i had to

 

st george utah

 

mobile home with fixed foundation, no hoa fees/condo fees ect(eww)  

 

property taxes=  .89% (but since it would be my primary residence i am only liable for 55% of the property's value

 

very likely too be employed (i have always been a top performer and ofc never been written up a single time at any job i've had/ i've always gotten promoted, i just had to step down from a decent salaried position 2 yrs ago because my wife (i was never home it was 75+ hrs a week)

 

i have 3 yrs+ experience in my current field 2yrs current job

 

and when they consider my DTI do they go by income before taxes or after?  id think after taxes but im not sure.

 

and i guess my main concern was that they would just sneer at my paltry income in general and want to avoid a loan with me, but if they look purely at the numbers im not as concerned.

Message 3 of 5
StartingOver10
Moderator Emerita

Re: fha Loan for low income

FHA considers your income before taxes, that is how the ratios are figured.

 

Do you have any other debt?

Message 4 of 5
Anonymous
Not applicable

Re: fha Loan for low income

no i have no monthly debt, i just pay rent (no student loans, maxed cc's, or car loans, etc) i own my vehicle and all other possesions.  Unless items in collections are considered debt, I had the internet company send me to collections years ago, and some medical bills.

Message 5 of 5
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