Do I qualifiy for a loan and one or two newbie questions.

[Anonymous]

1. Credit.  707 EQ -  I'm confused as to whether one of the negatives should still be on there because the EQ report has this DOLA as Sept 2007 for this and I'm almost positive that it was charged off back in 03 meaning it should have fallen off by now.  Discover was over the limit by $1200 and closed in 03, paid off in 11.  The first premier was 90 delinquent in Jan 05, 30 days in April and July of 05.  Nothing else since.

2. Wfnnb/Exp		8/2001	$0	Pays account as agreed		Details
   Fst Premie		4/2003	$47	Pays account as agreed		Details
   Discovr Cd		8/2002	$0	Pays account as agreed		Details

3. Income.  My gross is ~72K, Significant Other's ~80K 
4. Source of income.  I've got a steady full time job for 3 years.
5. Monthly debt payments.  All of these credit accounts have been paid off so my only payment will be $438 in student loans.  SO only has a $500 car payment.
6. Employment (for those who are employed).  Full time job for 3 years, in my field for 3 years after graduating with a masters degree.
7. Assets/Reserves.  ~23K
8. Location.  Harris County, TX
9. Property.  Single Family Home
10. Value.  350-400 K
11. Occupancy.  Primary residence
12. Transaction Type.  Purchase

The loan will be a joint with me and my significant other.  He has perfect credit so I'm only worried about mine and what is actually shown on the reports that lenders pull.  Any advice for this newbie is welcomed.  Please please please.  :-)

[ShanetheMortgageMan]

Your debt to income ratio looks fine, however at those loan amounts you'll need to be looking at conventional financing since FHA caps out at $271k and it doesn't look like you have the down payment to bridge that loan amount/sales price gap.  With conventional financing and 5% down, you should be fine, but that would be using nearly all of your down payment if you purchase a $400k sales price - a little bit less at a $350k sales price.  Conventional financing also will allow you to purchase with a 3% down payment, bust most mortgage insurance companies are looking for a 720 score.  They even have combo 1st/2nd mortgages in TX still, I believe up to 95%, but I am not sure of those credit requirements (I suspect also a 720 or even 740 score would be needed) but that is still 5% down.  The charge-offs/collections won't be an issue as they all appear to be over 2 years old and very small balances (if at all).

[Anonymous]

I know you mentioned that the charge offs/collections were more than two years ago.  Am I still going to have to explain this during underwriting then?

[ShanetheMortgageMan]

You will likely have to explain all negatives on your credit.