trying to get approved for fha loan

[Anonymous]

i will put as much information as i have if im missing anything let me know trying to see if me and my wife can be approved for a small fha loan in the next 6-8 months tell me what you guys think

my middle score 663 wifes middle score 701 

self employed 3 years same field income 40k a year avg 

will try to get a loan for 70-90k

i have about 7 inquiries on each credit bureau my wife has about 3 on each

savings + checking 10k

my cards

simply b 0/200

jd williams 0/200

capital one 100/700

kohls 0/300

credit one 0/450

wifes cards

king size direct 0/500

overstock 100/1050

capital one 100/500

discover IT 200/2000

both of our credit is new avg age about 6 months for both of us

i have 2 negatives 2 charge off gas utility accounts (scana energy) totaling $790 that are 5 years old i tried to do a pay to delete with them they arent budging they say if i pay they will update to paid in full no late payments on any of my accounts

my wife has 0 negatives or late payments

[H-B]

You should fine applying under FHA.

[Anonymous]

i went through the FHA process over the last few months.  my middle score was 642. 20K in bank. 25K car loan. avg agi 37K. tons of inquiries.  36 months no baddies, and qualified for 150K.   you look to be in fine shape.

Good Luck

[Anonymous]

thanks for the replies

[Anonymous]

Was your middle score based off of FICO 8 model or the mortgage FICO models?

[MauiMan85297]

It's not that cut and dry, with self employed it's all about Schedule C on your tax returns, if you write off a lot of expenses and your income is now under a certain amount your DTI can be extremely high.  It's not the same as a W2 employee.

[Anonymous]

actually according to myfico my middle mortgage fico is 657 

[Anonymous]

and im still not 100% sure how dti works but we have very little debt i dont have any car notes or student loans we own everything outright and very little credit card debt

[JVille]

As another poster noted if you are Self Employed and a Schedule C filer the Lender will average the BOTTOM LINE of Sch C for the last two years (2016 & 2017 Federal Tax Returns).
When you go to see a lender for a PreQual be sure and take your 2016 & 2017 Returns with you.
As a Lender I loved Schedule C filers, they either qualified or they didn’t based on those 2 yrs of tax returns. No amount of explaining needed, just a credit report and those returns and I had what I needed!

[Anonymous]

thanks for all the input