Purchase or New Construction Qualification

[mochi]

1. Credit: All pulled from this site-

EX - 612
EQ -654
TU -644

AAoA ~3 yr
3 revolving cards - all with $300 limit and all paid in full each month except 1 - left >10% utl.
Authorized user on card that reports to TU $4,000 on a $20,000 balance (will be paid down to $2k shortly)

Baddies:
Paid in full car loan with several 30's and one 60, will fall off this fall/winter
Judgement for ~$5k, paid down to $1900 currently and will be paid off with tax return next month.  Judgement is in the state of Utah so it will be removed once PIF

2. Income.  Gross $70k, will recieve a promotion when relocating so that number could go up to $100k

3.Source of income.  Hourly wages, some overtime and >$1k bonus

4. Monthly debt payments.  Only CC balances (~$75 min./month) once judgement is paid ($200/month toward judgement now)

5. Employment Full time W2 employee.  Been at current company 1y8m, was at the previous company 3yrs(electrician) and the company before for 8 yrs (grocery management).  New date of hire for relocation would be April, giving only a few months. 

6. Assets/Reserves.  $15k in Savings, ~$12k 401k.

7. Location.  Billings MT - would like to live outside city limits (not sure if that matters)

8. Property.  Single family - would prefer 1-2 acres.

9. Value.  Looking up to $250-275k

10. Occupancy.  Primary residence

11. Transaction Type.  purchase or new construction

Is there a big difference in qualifying between a purchase loan and a new construction?  We would like to purchase late summer/early fall but we're just starting to repair our credit and not sure if this is even possible.

[ezdriver]

A purchase loan is used to purchase a house that is either a resale or new construction. There is no difference in qualifying requirements.

[seantsi90]

I was in the same boat as you. We were preapproved through underwriters and had been looking for our first house, long story short we couldn't find the perfect house. Ended up meeting up with a different realtor and signed for a landbuilding contract with our contractor and l.o. but here is the kicker, we cant close ofcourse until the building inspector signs off on it and an appraisal is done. Since the bank ran our credit scores and ever document was turned in and the project will take 6 months to complete our scores are only good for 90 days they will have to rerun all 3 reports again. So just a few more hoops to jump into. Not to mention the contract agreements for payments to the contractor. Usually a 10% chunk at every inspection ....foundation, framing, wiring etc . Sorry for the long winded reply

[ShanetheMortgageMan]

Debt to income ratio looks fine for the $275k price point, your scores & credit appear to be fine too.  If the judgment is your only public record then once it's removed from your credit report you should see a nice bump in your scores.