Prequalification - FHA mortgage - Possible?

[Anonymous]

I'm going to follow "Shane the Mortgage Man's" post about what info to provide....

1. I am having some FICO issues, posted initial questions on that board and was referred here.  Here is detailed info on the credit situation: http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Urgent-Help-Needed-Another-Utilization-Qu... (I keep trying to fix this link but it bombs for me - please see board for Understanding FICO Scoring, post "Urgent Help Needed - Another Utilization Question")
2. Gross income:  Tax return 2010 - 106,000 Current income slightly higher.  I receive some minimal child support but can drop out of picture sometimes, don't know if I need to declare it, about $2820/yr
3. Source of Income:  employed full time, same employer almost 9 years, in industry 18 years.
4. Monthly debt payments:  after paydown listed in link from #1, expect auto loan + 2 cc's to equal about $1100.
5. Assets/reserves:  will have about $15,000.  LO has said that closing costs in today's market can often be paid by seller or if I can get qualified, can pay .25 to .5 add'l in interest.  After reading #1 link you may see why I'm willing to do that
6. Location:  WA, King County
7. Property:  Single family home, detached
8. Value:  $290k - $350K.  Believe it or not, in this school district these values are incredibly low.  If it wasn't for downturn in market, I couldn't even consider affording a mortgage.  No, a condo purchase will not work because then I have recreated current living situation
9. Primary residence
10. Purchase
11. Additional info:  Bank statements (not the lender) show overdrafts, 1 NSF from Jan 2010.
12. Additional info:  Lender is also lender on auto loan, in year 5 of 6 with spotless payment record.  Credit Union.

I have such an urgency to exit my current living arrangements.  I am completely stressed out over this, and I do not say that lightly.  Life is stressful for me in general due to being single parent of 2 intense children (one autistic, one teenager) and working full time.  Add death of parents, estate closings, angry neighbors, stir.  KABOOM!

Any insights that can be offered are greatly appreciated.  

Kindest regards to you smart folks that know how this works.  I consider myself to be smart, but this has made me feel like the village idiot.

 edited to try to fix url 

[ShanetheMortgageMan]

Your debt to income ratio looks fine, it's just that what appears to be the 2 recent late payments (30 and then a 60?) and the score being in the 540-580 range or whatever it's at exactly.  640 is still where a majority of FHA lenders are, but we're starting to see a lot of lenders go down to 600 or even 580 for FHA loans lately.  FHA requires anyone who has less than a 580 score to put 10% down.