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Will I get approved for an fha loan? Or should we not even try

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Will I get approved for an fha loan? Or should we not even try

My husband and I were planning on putting our home up for sale in April. A couple got wind of this and went ahead and made us an offer however we have not accepted it just yet their just so happens to be a house for sale right now that we also love.
Problem, money has been tight lately (were pregnant with twins and currently driving our kids to a neighboring county to school everyday which cost us $600+ in gas extra and that's also where my husbands employed we did this so they wouldn't need to change schools when we do move)
Over christmas I basically maxed out our credit cards but had planned to have all these paid down by feb. I've paid atleast $100+ on each since December
We have 5 credit cards between the both of us with no limit more then $1000 so it's not a significant amount of credit card debt about $3000 total.
We'd planned on using our tax return about $13,000
And money we make off our home sale $10,000 for the down payment and closing on a new home. We have no money in reserves other then that maybe $500 max in checking but nothing else.
our ending balance on accounts monthly are $1500+ on our statements but if you look weekly their really is never that much unused. Anther thing I'm worried about is our bank offers a cash advance deal where if you have x amount a month direct deposited weekly you can take out an advance and repay the next week for a small few we did this in the amount of $500 the month of November and December to pay our house payment (again Christmas and money was right)

We are wanting to apply for an FHA loan in the amount of $190,000 with the 3.5% down.
Our middle credit scores are 680 and 644.
Our credit history is clean with no late payments at all other then 3 late payments 2 1/2 years ago on my husband truck payment and they were not late it was miscommunication and bank told us they'd agree to dispute but then didn't and it really hurt his credit scores!
Gross yearly Income is $102,000 from my husbands job he has had same job for 6 years with steady income all about that amount.

Our monthly debt is -
Credit card fifth third
bal $800 limit $1000 $35 min pay.
Credit card walmart
bal.$700 Limit $800 $35 min pay.
Credit card walmart
Bal. $600 limit $700 $35 min pay
Credit card homedepo
Balance$400 limit $500 $35 min
Credit card capital one
Bal. $400 limit $500 $35 min

Truck payment $162.00
Van payment $440.00
Ranger(4-wheeler loan)$232.00

We can't pull from my husbands 401k because we are currently paying back a loan we took out on it.

I have already spoke with the bank and did get pre approved for the amount were wanting but told them I planned on having credit cards all paid down before we applied for the loan and they agreed that would help significantly.
However I'm still very concerned about even tho we've been pre-approved they won't give is the loan after seeing we have no reserves and put balance on checking and savings is low and that the cash advances will hurt us. I'm asking what are the chances we will actually get approved for the loan? Will those things really hurt us that bad? Or do you think we'd be ok?

Message 1 of 3
2 REPLIES 2
Established Contributor

Re: Will I get approved for an fha loan? Or should we not even try

Do a search here on debt ratios, and learn how that works.  Take advantage of the various calculators to get a idea of the new house payment.

 

Once knowledgeable use the numbers supplied in your post and see where ya are.  You're learn what good ratios are, but off hand it looks like you're ok.

 

Good steady income, decent but could be better CS,  good ratios, and a few letters of explaination on the lates, and I think you have a shot

Message 2 of 3
Valued Contributor

Re: Will I get approved for an fha loan? Or should we not even try

See other post. Your DTI is probably good but you need to improve your scores. I "think " I have read they use the lowest mid scores of the 2. Your interest rates will be higher with the lower mid scores so you need to optimize as much as possible.

Maybe try to get a good will deletion for the lates (again) , this will have a significant impact on your scores.

Good luck!
If anyone needs me I will be In The Garden. Goal Score: 760 for all in 2015.
Current FICO Scores EX: 715 EQ: 756 TU: 762
Last APP April 21, 2015.
Victim of The great AMEX HP heist of Dec 1st, 2nd and 3rd of 2014.
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