Mortgage Approvals in Current Economy

[hawkeye33]

Anyone want to weigh in on chances of getting approval for a mortgage with a 631 score in the current economic landscape?

Purchase price = $130,000

Down               = $8,000

Currently have auto loan at $360/mo. and student loan at $114/mo. Zero balances on all credit cards.

[Anonymous]

We need more info?

What is your proveable income and job history?

What are the expected taxes on the property?

Any derogs in the last 24 months

Any major derogs in last 36 months?

The FICO and down payment are fine as long as you are going FHA

[hawkeye33]

Sorry, yes, lates through April 2008, and 2 collections in 2007. Payment history completely clean since May 2008. Provable income is $6000/month gross. Current employer for 10 months after voluntary change in February 2008. Previous employer was 5.5 years.

Thanks!

[hawkeye33]

Oh yeah, taxes would be $1600 annually. Assuming $80 - $90 per month PMI because of the low down payment.

[Anonymous]

The DTI looks fine and 631 midscore will be OK.

Lates in past 12 months are hard to overcome. If you have a bunch of reserves or a higher down payment that might be OK.  Was the a hardship that might give you extenuating circumstances such as job loss/serious illness/divorce?

They are really picky about 12 months clean.  If it was one late maybe not a big deal, but if it was repetetive or a history goign back for awhile that ended in may, you are probably looking at ahving to wait until those age out at least 12 months.  Also, expect to have to write alot of letters of explanation for any lates.

[hawkeye33]

Thanks for the help. Unfortunately, lates have occurred over the past several year due to all of the items you mention except the illness (thankfully). There was a divorce that set me back. Loss of job also, unemployed for about 3 months. Lates over past two years have been during and subsequent to a cohabitation situation with what I can only describe as...well...a crazy person. I suppose I could write a fair amount about the impact of that (difficulty getting rent and utility payments from them).

There's a small claims case against this person for $5000, for which I was nice and mediated down to a $2400 agreement. They defaulted on this, and I have a judgement against them. So that's at least documeted evidence of a legitimate reason for the recent lates.

If I have to wait, so be it. I'm just anxious to get into something non-rental. Thanks much for your help!