Likelihood of getting approved for FHA

[Anonymous]

Good evening from Florida!

I am 28 and because rent prices are booming in Orlando I am trying to get approved for FHA

What are the chances of me getting approved?

I make $38,000 per year

My current scores are TU 680 EQ 643

Credit cards:

Capital One  $300 used / $750 limit 

American Express $1300 / 1900 limit (doesnt yet reflect on my score yet)

Car payment- Capital One $353

Student Loans $3,750 payment of $50 per month

All accounts in good standing, 100% on time payment history

I APPRECIATE ANY HELP, THANK YOU!

[azguy13]

How much are you looking to borrow? 

You should pay down those CCs because you are sitting at 60% utilization which is dragging your scores down. 

[Anonymous]

I know thats what I'm scared of but I need to move out by the end of January from current place and I don't want to rent if I can so I don't get stuck with a lease.

I am looking to borrow 100-120k if possible but I have found nice 1 bds for 90k as well

[azguy13]

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@Anonymous wrote:

I know thats what I'm scared of but I need to move out by the end of January from current place and I don't want to rent if I can so I don't get stuck with a lease.

I am looking to borrow 100-120k if possible but I have found nice 1 bds for 90k as well

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If you aren't able to pay down $1,600 in credit cards then you may want to hold off on purchasing a house. Home ownership can be quite expensive and you will still need a down payment on the home. 

You should also have some money saved away in case you have a home emergency such as a plumbing issue, electrical issue, new appliance, roof, or any of the numerous issues homeowners face. I would highly suggest you take out a new lease, pay down debt, and save money for a down payment/savings. 

[Anonymous]

Thank you for your advice! I actually do have money for the downpayment, 5,000. but I cant touch it unless its for the downpayment... 

[Anonymous]

I would suggest setting up a NFCU membership.

[azguy13]

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@Anonymous wrote:

Thank you for your advice! I actually do have money for the downpayment, 5,000. but I cant touch it unless its for the downpayment... 

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Excellent. I apologize if my last post came off as presumptive. I just re-read it and it sounded that way to me. Anyways, it sounds like you are good to go with the down payment then so if you can, bring that utilization down. Really the best thing to do is to talk to a loan officer and just work with them. They will be able to tell you everything you need to do to set yourself up for success. 

Tydawg seems to think that the answer to everything is to join NFCU   I think he just copy/paste it on every thread, haha. 

But to be fair, it would not be a bad idea. It is just not the only answer. Let us know if you talk to a loan officer and what they suggest. Honestly, I have seen people in lesser situations be approved so who knows. You just need to make sure your DTI (debt to income ratio) is within their comfort zone. But again, that will be answered quickly by an officer.