topic What are my odds in Mortgage Loans

What are my odds

Anonymous — Wed, 03 Jun 2015 00:53:16 GMT

OK here it goes

Income $84k; W2'd; 2 years
Score 626, 626, 606; I have 2 paid collections; 3 late CC pmts 3/14, 7/14, and 8/14; on time and paid in full since
I owe $80k in studen loans; $8k car loan
I pay $400/mo student loan; $325/mo car loan
I have ~$12k in reserves
I want to buy a $220K single family house as my primary residence in Erie County, NY

Can I get a mortgage? Thanks in advance!

Re: What are my odds

Anonymous — Wed, 03 Jun 2015 06:16:43 GMT

Does anyone know if I can get approved?

Re: What are my odds

Anonymous — Wed, 03 Jun 2015 06:29:20 GMT

You're paying 400 a month on your 80k student loan & 325 on your 8k car loan? You could squeak by. What about closing costs?

Re: What are my odds

Anonymous — Wed, 03 Jun 2015 15:25:16 GMT

@Anonymous wrote:
You're paying 400 a month on your 80k student loan & 325 on your 8k car loan? You could squeak by. What about closing costs?

That is my question too. When you say $12k in reserves, do you mean $12k total? You could cover the downpayment and some of the closing costs/pre-paid items, but you'd likely have to take lender credits (higher interest rate) to cover everything.

Also, do you have any high CC balances that you could pay down to get an immediate jump to ~640? Some lenders require 640 for FHA, but not all.

Re: What are my odds

Anonymous — Wed, 03 Jun 2015 17:47:29 GMT

My high credit balances were paid to get me where I am. Unfortunately there is not much more I can do at the moment. All my collections are paid, all my CC's are paid. And yes, the $12k is everything I have at the moment. I am saving every month but I think I'm going to have to take on the higher rates to get this done.

My sense of urgency is two-fold. My daughter starts kindergarten this fall and we would like to buy a house in her district so she can grow up in the same school. The other thing is the obvious risk of interest rates going up in the near future.

So would you recommend I take a shot and apply or should I wait to try and get my score up? I have 8 months of on-time pmts on my CC's and 2 years of on-time pmts on my auto loan. I have 1 CO and 2 paid collections. [fingers crossed]

Re: What are my odds

Anonymous — Wed, 03 Jun 2015 17:48:23 GMT

BTW, the CO is paid as well.

Re: What are my odds

Anonymous — Wed, 03 Jun 2015 17:52:24 GMT

I think FHA is definitely worth a shot, just have to check with the lender to make sure they'll do FHA at 620 (many will). Other than potentially your credit score, I don't see any other major issues.

You could always send a good will letter to try and get those collections removed, but if you find a lender that will do FHA at 620 there may not be much of a need.

Re: What are my odds

Anonymous — Wed, 03 Jun 2015 17:56:16 GMT

Yes $400 for student loans and $325 for auto. So $725 total per month. My gross monthly income is $6954 so my DTI is ~10.5%. If I'm not mistaken that should leave 30.5% for mortgage, taxes, etc. under FHA, or $2120. This should more than cover it I would think. The question I guess is can I get approved based on my credit.

Re: What are my odds

Anonymous — Wed, 03 Jun 2015 17:57:45 GMT

Thanks dpeezy! I appreciate your input!

Re: What are my odds

Anonymous — Wed, 03 Jun 2015 18:00:39 GMT

No problem! Make sure to keep us posted!

Re: What are my odds

StartingOver10 — Wed, 03 Jun 2015 18:51:14 GMT

You have a couple of different places to get closing funds - the seller is a good resource (in some markets) and the lender

First try the seller because then you don't have to take the hit for the higher interest rate that a lender has to charge you in order to contribute.

Some markets are so hot right now that the seller won't consider a contribution toward buyers closing costs. Talk with your Realtor

Re: What are my odds

Anonymous — Wed, 03 Jun 2015 19:08:20 GMT

@StartingOver10 wrote:
You have a couple of different places to get closing funds - the seller is a good resource (in some markets) and the lender

First try the seller because then you don't have to take the hit for the higher interest rate that a lender has to charge you in order to contribute.

Some markets are so hot right now that the seller won't consider a contribution toward buyers closing costs. Talk with your Realtor

Great advice! Recently, I have gotten into a bad habit of not even suggesting seller credits because they are so unheard of in the bay area right now !