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Is there a chance to get approved ?

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Established Member

Is there a chance to get approved ?

Here is the situation:

Employed for 9 years with same compagny

Salary (mine : 94000) (spouse 62000) total income : 156K

My mortgage scores: 654 - 664 - 671

Credit card payments : $490/month

Car loan : $542/month

I have late payments last reported 12 months ago for 1 credit card (120 days !!!) 

I never had an isue in the last 12 months, and I just started saving in the last 2 months ( ~ $3500/month ) available cash for DP and closing ~ 16K 

I have been renting a house with no late payments in the last 5 years

Is there a chance to get approved with the negatives I have ?? 

We are planning to go for a house of ~ 300K as first time home buyers

 

Thanks

8 REPLIES 8
Valued Contributor

Re: Is there a chance to get approved ?

I see much more difficult files get approved for FHA all the time. You have plenty of income and your assets are right where they need to be based on the purchase price you are looking at. Apply with confidence.

Mortgage Loan Officer licensed in CA & AZ


Message 2 of 9
Established Member

Re: Is there a chance to get approved ?

thanks dpeezy for your response.

What about conventionnal ? or ARM ? I would like to stay away from FHA if possible.

We are thinking to apply with a local credit union !

Message 3 of 9
Valued Contributor

Re: Is there a chance to get approved ?

I would stay away from an ARM unless you are 150% sure you will be selling the property before the ARM resets. Why do you want to stay away from FHA? Your total payment will be much lower (~$200/mo) with FHA compared to conventional at the 600-679 credit bracket.

Mortgage Loan Officer licensed in CA & AZ


Message 4 of 9
Established Member

Re: Is there a chance to get approved ?

What about the PMI ?

Message 5 of 9
Valued Contributor

Re: Is there a chance to get approved ?

Unless you are putting 20% down, you are going to be paying mortgage insurance with a conventional loan too. FHA MIP would be 0.85% of the loan amount per year, and at 5% down conventional in the 660-679 bracket PMI would be 1.42% of loan amount per year (almost double FHA). Eventually, the conventional PMI will fall off but you will be over $20,000 in the hole compared to FHA at that point.

Mortgage Loan Officer licensed in CA & AZ


Message 6 of 9
Valued Contributor

Re: Is there a chance to get approved ?


@youbby wrote:

Here is the situation:

Employed for 9 years with same compagny

Salary (mine : 94000) (spouse 62000) total income : 156K

My mortgage scores: 654 - 664 - 671

Credit card payments : $490/month

Car loan : $542/month

I have late payments last reported 12 months ago for 1 credit card (120 days !!!) 

I never had an isue in the last 12 months, and I just started saving in the last 2 months ( ~ $3500/month ) available cash for DP and closing ~ 16K 

I have been renting a house with no late payments in the last 5 years

Is there a chance to get approved with the negatives I have ?? 

We are planning to go for a house of ~ 300K as first time home buyers

 

Thanks


Hi Youbby,

 

It's really difficult to say whether or not you'll get approved with any real degree of certainty due to the 120 day late payment on your credit card in the last 12 months. It will come down to whether or not you get "approved" through the AUS (automated underwriting system).

 

Given your current scores, FHA would be the way to go BUT if you had a lender that would help you on getting your scores up over the next 30 days, a conventional loan might become a more attractive option.

 

At the end of the day it will boil down to which program you actually qualify for given that 120 day late payment on your credit card.

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 7 of 9
Established Member

Re: Is there a chance to get approved ?

My wife's scores are in the 690's and her credit report is clean. I know her income is not high enough to get 300K loan alone, but I was thinking based on my scores, our low DTI, and our 150K+ income ... we should have a good chance even with the 12 months old late payment, may be I'm wrong !! 

Message 8 of 9
Valued Member

Re: Is there a chance to get approved ?

Hi youbby,
Ability to pay (income) and willingness to pay (credit score) are two separate metrics, they have no influence over the other and cannot 'makeup' for each other. Since your wife's credit score is higher, your scores will be the only ones that matter. If you are serious about purchasing, I would get preapprovals for both FHA and conventional loans and compare the rates. Think about your long term plans and look at the long term costs as some have pointed out earlier. Take your time and enjoy the process =).
Message 9 of 9
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