Will I be FHS approved?

[Anonymous]

I am a school teacher and make 55,000. Paid off car recently and only have one other outstanding debt payment of 168/month so front end and back end ratios will be fine. My credit scores are all above 700, No blemishes on my credit reports at all in the last 10 years or so  

except   1.)  for a very old - like maybe 10 years old- not paid account that was bought recently posted a negative about a year ago (I had a very bad medical issue that ruined my credit in the early 90's and I had tons of unpaid accounts that all scrolled off but this guy sold and the buyer is trying to collect)

and 2.) a judgement posted about a year ago or so from that same medical issue posted  above - the judgement itself is an unpaid school loan that was due during that time of about $4,000 I have cash reserves of about 20.000 

I think I read somewhere  that FHA will require the judgement be paid no matter what and from when it orignated but if I write a letter tkinking the other negative to very old debt, it will not have to be paid. True?

Also, does FHA require the owner to live in the property? Long story but I want to buy  small house for my mom to live in. She would pay market rate rent but at her age and income wont qualify for a mortgage. I will probably marry in the next two years and move in to my SO's house.

[DallasLoanGuy]

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teachscience wrote:

I am a school teacher and make 55,000. Paid off car recently and only have one other outstanding debt payment of 168/month so front end and back end ratios will be fine. My credit scores are all above 700, No blemishes on my credit reports at all in the last 10 years or so  

except   1.)  for a very old - like maybe 10 years old- not paid account that was bought recently posted a negative about a year ago (I had a very bad medical issue that ruined my credit in the early 90's and I had tons of unpaid accounts that all scrolled off but this guy sold and the buyer is trying to collect) dont worry about that

and 2.) a judgement posted about a year ago or so from that same medical issue posted  above - the judgement itself is an unpaid school loan that was due during that time of about $4,000 I have cash reserves of about 20.000  yes, it will have to be paid. unless otherwise satisfied.

I think I read somewhere  that FHA will require the judgement be paid no matter what and from when it orignated but if I write a letter tkinking the other negative to very old debt, it will not have to be paid. True? must be paid

Also, does FHA require the owner to live in the property? Long story but I want to buy  small house for my mom to live in. She would pay market rate rent but at her age and income wont qualify for a mortgage. I will probably marry in the next two years and move in to my SO's house.

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are you going to live there initially? for how long?

[Anonymous]

I will answer the last question ONLY-

Yes- FHA will require this to be owner occupied-

[DallasLoanGuy]

FHA says: "You must take possession within 60 days of closing and occupy the property for at least 1 year to be eligible."

paraphrased

[ShanetheMortgageMan]

The OP could also buy the home as a non-owner occupant co-borrower with her mom also on the loan, and qualify for FHA terms that way.

[Anonymous]

What guidelines does the coborrower have to meet in terms of credit, etc?

[ShanetheMortgageMan]

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teacherhere wrote:

What guidelines does the coborrower have to meet in terms of credit, etc?

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Same as the borrower.

[Anonymous]

Understanding that the co borrow would have to have the same good credit as the borrowor..would their income have to be enough able to carry the mortage seperately or if the borrowors income is sufficient to carry the mortgage by itself, the co borrow would be ok with a lower income? Could their incomes's be combined to be able to get a slightly larger mortgage?

[ShanetheMortgageMan]

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teacherhere wrote:

Understanding that the co borrow would have to have the same good credit as the borrowor..would their income have to be enough able to carry the mortage seperately or if the borrowors income is sufficient to carry the mortgage by itself, the co borrow would be ok with a lower income? Could their incomes's be combined to be able to get a slightly larger mortgage?

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With FHA the combined income from all applicants (as well as all debts) are put together to qualify.  So if you are referring to the non-occupant co-borrower situation I briefly mentioned above, the occupant borrowers income & debts are considered and the non-occupant co-borrowers income & debts are considered (if they are renting or have a mortgage that would be included in the non-occupant co-borrowers debt payments).  The non-occupant co-borrowers income does not have to fully support the mortgage payment alone, unless the occupant borrower has no income.  Their incomes can be combined to qualify for a larger mortgage than just what the occupant borrower could qualify for.