Would we Qualify????

[Anonymous]

Hello, i was wondering if anyone can give us some advice, etc.

1. My credit is great, around 750 last time i chaecked, my husbands is not so great, around 635,  He has two collections that we would like to settle soon and 3 charge off cards, two of which have been sold to collections. Before we plan on applying, i would really like to pay those all off. Those collections/charge offs are from 2008/09, so about 3 years old.

2. Our income is 13k for me, worked there for two years, and 40k for my husband, however, he is self employed, atleast two years same field, so actually income for him after deductions is around 32k, so i guess total HH income is around 45k? 

3. We have no current debts, no cc debt, or car payments.

4. We wil be going FHA with 3.5 down etc, and will have about 3 months reserves.

5. Locations would be in western washington, so the houses are pricey here, so that is actually one of my concerns here, if our income would qualify for a house around 200-220k?  if not, how much would we need to make?  This would be a single family house.

If anyone could help me out with advice on what to do that would be awesome! We plan on applying in a years or longer, but i want to make sure we are totally ready, and will actually qualify for the amount we would need.

[Anonymous]

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@Anonymous wrote:

Hello, i was wondering if anyone can give us some advice, etc.

1. My credit is great, around 750 last time i chaecked, my husbands is not so great, around 635,  He has two collections that we would like to settle soon and 3 charge off cards, two of which have been sold to collections. Before we plan on applying, i would really like to pay those all off. Those collections/charge offs are from 2008/09, so about 3 years old.

2. Our income is 13k for me, worked there for two years, and 40k for my husband, however, he is self employed, atleast two years same field, so actually income for him after deductions is around 32k, so i guess total HH income is around 45k? 

3. We have no current debts, no cc debt, or car payments.

4. We wil be going FHA with 3.5 down etc, and will have about 3 months reserves.

5. Locations would be in western washington, so the houses are pricey here, so that is actually one of my concerns here, if our income would qualify for a house around 200-220k?  if not, how much would we need to make?  This would be a single family house.

If anyone could help me out with advice on what to do that would be awesome! We plan on applying in a years or longer, but i want to make sure we are totally ready, and will actually qualify for the amount we would need.

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There are numerous calculators online that would give you an idea on how much you qualify for. 

Play around with them and see how much you qualify for.

[goodygoody]

A few things - I think if you pay off DH's collections, your credit will probably be ok for FHA. 

I wonder if you would qualify for USDA with the payment subsidy?  Then you could buy more house in your area.  But the home has to be in a qualifying area, so...  Buit if you think you might want a house in a qualifying area (not a development, city, or suburb, basically), you may want to look into that. 

I hope you'll post again if you are approved - my family is pretty much in the exact same boat as you (though no credit baddies, luckily), and I'm always curious what kind of loan we could get with our income.  Some of the calculators give me amounts like $90,000, and I feel like we'll never be able to get a decent house in our area for that, so wondering if we should just forget it and rent forever unless we can do the USDA subsidy...