First time buyer - advice needed

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Hi everyone! I've been browsing this forum for a few days and decided to make a post. My boyfriend and I are currently looking to purchase our first home together and we need any advice that we can get.

Let me first start off by supplying some information:
- A month and a half ago our credit score was pulled by a loan officer. Mine came back as 610, my boyfriends came back in the 520's. Now, he was over the limit of his credit cards and had a couple of late payments. We have since paid off one credit card, another one is paid off below 50% of the limit, and the others are paid off under the limit. I have also taken over his payements, so everything is now being paid on time.
- I only make $12,000 a year and have been working at my current job for 1 year in April (though I have been in the same field for 5 years). I am due for a raise next month as well.
- My boyfriend made $16,000 last year, but took a new job working in insurance in December. He makes anywhere from $2,000-$4,000+ a month working on commission.
- If possible, we want to do 100% financing. But if that is not possible and downpayment assistance is not possible, my family would be willing to help with a 3-5% downpayment.
- We have already found a house that we like... it's currently listed at $80,000.

Do you guys think that we could qualify for a loan? I've really been looking into FHA loans, but I'm afraid that since the one mortgage broker we talked to told us to come back in a year, that we are out of luck. We have an appt. with another lender on Tues. Is there anything I can do to help us out and have a better chance at getting pre-approved?

Jeanette · Posted: Sun Mar 30, 2008 6:18 pm Post subject:

Hello Nfilkins and Welcome to Mortgage Fit Forum,

FHA loans are not score driven however, lenders look at the score because it tells a story. Under FHA guideslines you cannot have any outstanding judgements, nor collection items. Your payment history has to be flawless for 12 consecutive months. Meaning, no late payments for 12 consecutive months. YOur Debt to Income Ratio should be under 50%. Based on those guidelines, and if you pass them, you should have no problem qualifying for an FHA loan. At 97% ltv you should bring 3% to the table.

Good luck on your search.

Jeanette Smith
Mortgage Planner
Union Mortgage Group
cell---757-338-1889
office-757-306-3300

chrisburns · Posted: Mon Mar 31, 2008 11:07 am Post subject:

I've compiled a pretty good basic look at what FHA guidelines are in terms everyone can understand. IF your questions about FHA aren't answere here: "http://www.fivestarsmortgage.com/fha-guideline-overview"

Post them here and someone will be able to address them for you.

Link deactivated as per the forum rules

Jessica

Hi Nfilkins,

You could have qualified for an FHA loan but the couple of late payments that you've made are perhaps making it difficult for you to qualify. You won't get 100% financing as 80/20 loans are hardly available now. That's because of the sub-prime market crisis.

I don't think you'll have problems in getting down payment assistance. And if you get it, better put down at least 10-15% for a loan with favorable terms and conditions.

You're expecting a raise income – that's good news indeed Smile

hopefully it will help you qualify for a better loan. Did you ask the broker as to why he denied the loan/ based upon the reasons you can still look out for FHA approved lenders? And you can also go for free consultation on the right loan from our community lenders. There are here to help you with useful suggestions and financial advice, so don't hesitate to talk to them.

Regards,

Jessica.

gmakerley · Posted: Mon Apr 07, 2008 12:13 pm Post subject:

what hasn't been addressed here is the tentative status of your boyfriend's income. frankly, the commissions income is not stable at this time, particularly inasmuch as he has only been so employed for the last few months. there are very few lenders who will consider his average of commissions for this brief a period to be stable enough to support a mortgage.

frankly, i would suggest, as your first lender did, that you save your money, stabilize your income and maintain/improve your credit standing for several more months at a minimum; and even better, wait the year it was suggested you wait.

you may be able to afford a mortgage on a property valued at $80K, but what if sales drop in the insurance industry? don't forget that there are other expenses involved as well; so having a few dollars in pocket is well worth your trouble.

for the most part, 100% financing is a thing of the past. most mortgage insurance companies are eliminating those products; and lenders are not apt to grant loans for which there is no guarantee available. your best bet is to accumulate the 3% that fha requires, as well as any additional funds you can get; wait until your income status is more stable and try then.

jeffselan · Posted: Mon Apr 14, 2008 7:28 am Post subject: Wait.

Most banks want to see at least two years on commision income for the purpose of getting an average.

Get some time between you and your boyfriends late payment history if you are looking FHA.

One thing to consider, check around to see what kind of bond programs are available in your state. you might qualify for special programs for low income.

jbarto65 · Joined: 04 Nov 2007 Posts: 627 0.00 Dollars($)

Wow you have gotten some really good advice here, please keep the forum updated on what you chose to do. goodluck in your decision. Very Happy

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