Will I get pre approved FHA Mortgage? How much?

[Anonymous]

Looking for some help from people with experience.

FICO SCORES

Equifax 651

TransUnion 638

Experian 645

I have an income off $55,000. Been at job for 2.5 years.

pay $175 Student loans/ month

$500 Car payment

$125 CC payments

Capital one ..Judgement $1100 - Paid in full / Satisfied from 3/2013

2 CC charge off's ... Macys $330 , Cap 1 $1100 (above) both paid in full

$12,500 down payment.. Should I have a problem getting pre approved and for how much ?

Thank you , and appreciate any response

[Creditobsessed12]

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@Anonymous wrote:

Looking for some help from people with experience.

FICO SCORES

Equifax 651

TransUnion 638

Experian 645

I have an income off $55,000. Been at job for 2.5 years.

pay $175 Student loans/ month

$500 Car payment

$125 CC payments

Capital one ..Judgement $1100 - Paid in full / Satisfied from 3/2013

2 CC charge off's ... Macys $330 , Cap 1 $1100 (above) both paid in full

$12,500 down payment.. Should I have a problem getting pre approved and for how much ?

Thank you , and appreciate any response

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You didn't state where you are located and how much you are looking to finance but from what I see your DTI may be an issue but it depends on the price of the house. 

Take a look at this:

http://ficoforums.myfico.com/t5/Mortgage-Loans/Do-I-qualify-for-a-mortgage-Info-that-is-needed/td-p/381846

[Anonymous]

Located in Quincy Ma, 02169. Looking to finance around $250-275,000.

[Creditobsessed12]

I am no way near as experienced as others here but based on my experience I would say no because your DTI ratio is too high. 

You have a better chance if you maybe get a co-signer or get rid of the car loan debt. 

Even if you were approved, more than half of your salary would be used to pay your monthly expenses.  Why would you want this?

[Anonymous]

Can you refinance your car loan for a lower monthly note? And even pay off cc debt? Your dti would be high if your property taxes are expensive.

[Anonymous]

My fiancé is self employed but her credit score is low so not worth putting on the application, thus my bills being half my salary is not a concern, more being able to get the biggest loan. I appreciate the feedback! Thanks

[StartingOver10]

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@Anonymous wrote:
My fiancé is self employed but her credit score is low so not worth putting on the application, thus my bills being half my salary is not a concern, more being able to get the biggest loan. I appreciate the feedback! Thanks

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Its a concern to the lender.

DTI is one of the top factors affecting how much you can borrow as the lender can only use the borrowers income on the loan for determining the amount for which you qualify. Debt to Income (DTI) consists of two parts: (1)  housing ratio (this is the new payment on the new house including principal, interest, mortgage insurance if applicable, HOA if applicable, property taxes, and homeowners insurance) and (2) total debt ratio (also called the 'back end' ratio): which includes #1 plus your cc and installment loans.

FHA loans have higher maximum ratios allowed by FHA (56.99% for total back end ratio).

Conventional loans are much lower (45% for back end).

There are other types of loans, but you usually end up with a higher interest rate and a lower LTV in exchange for more generous guidelines. I am thinking here of a bank statement type loan.

Are you a first time homebuyer? There are programs available for first time homebuyers that may be helpful to you.

[Anonymous]

I am a first time home buyer , 27 years old. I completed a first time home buyers class and received a certificate that would qualify me for some first time home buyer loan programs ,which would eliminate PMI but doesnt mention the back end ratio's... I'd imagine they would be closer to those of a conventional loan. Also they require a 660 credit score, which im not far off of but as I said before im just worried about borrowing the most amount of money poissible based on my DTI.  Again thank you for your responses , any and all information will help me out as I am going to get pre approved next week , I just wanted to have an idea before hand on what my likelyhood of getting a $250k loan would be.

[StartingOver10]

I forgot to ask you - are the FICO scores you show FICO 08 scores or the mortgage scores?  If they are 08 scores, then pull your actual mortgage scores on the 3B report. They are the same FICO scores that lenders use. That way you can discuss with the lender your DTI info without a HP if your scores are less than the min required. Pulling the report here is a SP consumer report and not a HP lender inq.  Something to keep in mind when you are potentially at a borderline score.

[Anonymous]

They are FICO 08 Scores, ok thank you for the advice. I will keep you posted to what happens during pre approval.

Thanks again