What do you think?

[BaraRara1979]

1. Credit. scores are all lender pulled...642(EQ), 671(TU), 668(EX)  I have one non medical collection for 1,666.  Two medical collections for $97 and $21.  There is an old Circuit City card that was charged off..which I paid through a CA with 12 90 days late!   The last late for that was in Feb 09.  I  have another card that was charged off and has 4 90 days late..last one being in Mar 08.  I have 3 different Nelnet accounts...all are 5 90 days late..last one in june 07...  Then there's my old car loan with HSBC.  I have 20 30 days late on that one!!!  The last late was in Nov 08.  Very nervous about all these late payment accounts!
2. Income.  I am a server so my income on paper is HORRIBLE!!!  Monthly income is only about 1,300
3. Source of income.  Wages plus tips
4. Monthly debt payments.  Car payment of 161.90, student loans of 51.63, min payment on credit card of 15.00
5. Employment I have been at the same employer for close to 5 years now.
6. Assets/Reserves.  I have a very small amount of reserves put aside.  I am receiving assistance through my county for downpayment and closing costs. 
7. Location. Buffalo, NY
8. Property.  Single family
9. Value.  Found a very nice home for 49,000!!!
10. Occupancy.  Primary residence
11. Transaction Type.  my first home purchase

I am extremely nervous about this whole process!!  I will be officially applying for the mortgage within the next couple days.  Are all those late payments going to hold me back from obtaining the mortgage?? 

[ShanetheMortgageMan]

I think the credit history will be fine, the only thing that the lender may care about is the non-medical collection for $1,666, everything else is considered old.  Did you go over what the payment would be on this home with your loan officer?  If the taxes are $500/year and insurance is $600/year, then you'd be OK with the numbers you provided... but if taxes are $1k/year and insurance is $900/year then your debt ratio would be over 50% and most down payment assistance programs usually require it be around 43-45%.  Your loan officer should be aware of all the details on being able to qualify for the down payment assitance though.  Is it SONYMA?

[BaraRara1979]

Thanks for the reply!!!

I am unsure of the actual taxes..think they are just a little over 1000 a year.  I haven't looked into insurance just yet.  LO estimated mortgage payment to be around 480 or so.  I am receiving a grant from my county for 14,000 for downpayment and closing costs.  After living in the home for 5 years, it is forgiven.  I have to use their preferred lender which is M&T bank...

[ShanetheMortgageMan]

You are welcome.  That would put your debt to income ratio at 54%, which can still qualify for FHA financing with your scores, so perhaps that is what the 1st mortgage loan program would be.  Be sure to have your last 2 years of federal tax returns, W-2's & paystubs when you are discussing your income.