Qualifying for a FHA mortgage

[Anonymous]

I have been lurking here for the past month. Following the advice I've found here, I have increased my EQ score from 597-647 and my husbands had gone from 579-641!! I had no idea that I could repair my credit like this!! My GW letters haven't gotten me too far, the only positive responses I've received were from B of A and my credit union. So... My question today is about qualifying for a FHA loan... We currently own a home and are looking to purchase a large home (a short sale) closer to where my son will attend school next year. We plan to rent our current home. We have had late mortgage payments in the past, none since 1/2010. We had a non-government modification of our mortgage in 2009; no change in principal just a change to a fixed rate for 5 years from and adjustable rate. I have also had some lates on my student loan last year due to my thinking my loan was in forbearance. The last SL late was 11/10. Our DTI ratio for the new motgage will be 12% and our back end with both mortgages will be 40%. Do we have a chance to qualify??

[DallasLoanGuy]

With you being able to cover BOTH mortgages I would say that you have a chance.

Automated underwriting will want to see something good.... like long time with same job or some liquid assets..... but I wouldn't be afraid to apply with this scenario.

If you do NOT qualify.... a good loan officer would be able to 'massage' your file a little and tell you what you need to work on to be approved at a future date.

Please tell me that your credit cards aren't maxed out.