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Reading the boards quite a bit, I thought it was time to take the plunge to see if I could get some advice. The wife and I are thinking we may be ready to look for a house. After a few hours of research I think our best bet may be FHA.
If possible I’d like for one of the many experts on this board to give me a confidence boost about the likelihood of approval or possibly ideas on how to get to where we need to be to get a home.
The specifics:
We will probably have about 5-7k to put down without dipping into 401k.
We’re thinking homes in the 140-145k price range would be about right for our family.
State: IA, the eastern portion of the state. non-rural..If you can believe any part of Iowa isn't rural
Joint BK in filed April of 06 discharged in June 06
Lots and lots of baddies pre-BK.
Since BK
ME
Income: 55k,at current employer 2 years in Jan 09…same industry 15+ years
Scores as of last week: TU: 671, EQ: 679, EX: 669
No lates
1 paid collection, assigned to collections Nov 06, paid Feb 07
4 CC accounts
Total Balance of 600
Total Credit Limit of 11,500
Min payments for CCs-40 total
2 at a 0balance, 2 reporting balances
1 Auto loan
217/month new loan in March
THE BOSS aka the wife
Income: 50k,at current employer 8 years…same industry 10 years
Scores as of last week: TU: 643, EQ: 636, EX: 647
No lates
1 paid collection, assigned to collections Nov 06, paid Feb 07
1 paid collection from 2006, (have disputed because it should have been included BK)
4 CC accounts
Total Balanceof 1,300
Total Credit Limit of 5,100
Min payments for CCs-40 total
1 at a 0 balance, 2 reporting balances
1 Auto loan
235/month new loan in June
And if anyone has managed to read through this and still would like to respond, kudos to you...probably more detail than anyone would like to have about a fellow poster.
You've provided a perfect amount of info, remember the more info you share means the advice you get back will be that much more accurate.
Overall you guys seem to be pretty well qualified. Your debt to income ratio is very low, you appear to have reserves available in a 401k, and even though there is a negative mark after the BK since you have other compensating factors the liklihood of getting an automated approval would be excellent.
You've provided a perfect amount of info, remember the more info you share means the advice you get back will be that much more accurate.
Overall you guys seem to be pretty well qualified. Your debt to income ratio is very low, you appear to have reserves available in a 401k, and even though there is a negative mark after the BK since you have other compensating factors the liklihood of getting an automated approval would be excellent.
Thanks and a what may be a silly follow up question.
Is there a website I can go to try to get an automated approval or do I have to find a lendor first?
We don't have a home in mind as yet. If possible I wanted to pre-qualify, can you do that with FHA?
When I try to google FHA loans I get so many sites that make me a little leery, so I have a great appreciation for the advice I get here.
You can not do that yourself
FHA does allow you to get an automated approval before shopping - I wouldnt suggest doing it any other way
The web is a big mystery - when shopping you need to know if you are dealing with a lender or a lead generator
The second is a site where you will put your info and they will sell it
The problem with this is many times those people will sell it and you can see how quickly your info can spread.
You know the whole when banks compete - well sure but not when they do it through that website
Ask for referrals from friends or family or find someone you can trust that can do loans in your state
Brian
We talked to a real estate agent who used to work for me a few years ago, she gave us a referral for an FHA approved lender. I'm happy to say that we passed through automated approval without a hitch.
Thanks to all of you that contribute to this board! If it weren't for all of you I don't think I'd have ever known about FHA or felt confident enough in our finances to think about applying for it.
On to house hunting for us. It's interesting last year we had talked to a broker who said he could get us approved but the interest rates were sky high. Having an FHA rate is allowing us to look at homes that there was no way we could have afforded last year.
Thanks again to all, the help I've received here is invaluable.
I might add one comment here. Your scores are pretty good, but you would both see at least a small-medium jump in your FICO score if you only let one credit crd report a balance. Ideally you want fewer than half of your credit cards reporting. As you both have 4 credit cards that means one 1 can report (each) to be less than half. The easiest way to do this is to pay one card of before the statement reporting date. Of course you would also see a jump in score if you could get your credit card balances below 7% utilization or so (if possible of course).
Good luck with your home purchase!!
@Anonymous wrote:I'm happy to say that we passed through automated approval without a hitch.
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Thanks again to all, the help I've received here is invaluable.
You are welcome and congrats on the approval!