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marianitza62 · Joined: 24 May 2009 Posts: 3 2.43 Dollars($)

My husband got laid off 13 months ago but is now back at a new job making more than he did previoiusly. His credit score is about 670 and no outstanding debt. I on the other hand have a credit score of about 520 and I am paying off all of my small debt withn tthe next 2 months but unable to completly pay off my car loan at present but I have kept it current and will have it paid off in 2 years. Our combined income is about $90k/year. My question is, assuming I can get my credit scores up within the next 6 months and we have the 5% for our down payment and can cover our own closing costs, would we be able to qualify for an FHA loan using my husbands credit scores even if he is new on the job? His job is in the same field he has been working in for over 25 years. I'm wondering if my scores and his job loss for that short period of time are going to keep us from qualifying.We were hoping to be able to buy before the end of the year to take advantage of the 2009 First Time Home Buyers Tax Refund.

Thanks for your help!

jenkin7 · Posted: Sun May 24, 2009 10:01 pm Post subject:

Hi marianitza,

To qualify for an FHA loan, you will need a credit score of 620 and you should also have no negative items on your credit report. If you stay current on your car payments and pay off your other debts, you do have a chance to qualify for a loan. FHA also requires you to have a stable employment history for at least the last 2 years. But as your husband is now employed and have an employment history of working in the same industry for the past 25 years, I believe his temporary period of job loss will not affect his eligibility to qualify for an FHA loan.

marianitza62 · Joined: 24 May 2009 Posts: 3 2.43 Dollars($)

Thanx for the quick response, jenkin7! I appreciate it!

robertsmith2005 · Joined: 22 May 2009 Posts: 338 -0.48 Dollars($)

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elnoralittle · Posted: Mon May 25, 2009 10:10 am Post subject:

I agree with Jenkin
you are on the right track. Main thing is getting that score to a 620 for you.

with a reasonable explanation, the gap of employment shouldn't effect your application

executivemortgageadvisor · Posted: Mon May 25, 2009 3:32 pm Post subject: FHA Advice

Elanora is correct regarding the letter of explanation for job time loss (Gap in Employment), FHA requires a 2 year work history whether it be from temporary agency or if you were self employed. Your husband has the 2 years of required employment you will simply need to explain away the gap. As far as your down payment 3.5% is required for FHA no if's and's or but's, you must have 3.5 down from you or gifted. You have ample time to get your score up but be careful what you pay down or off! Medical bills will hurt if paid off in one fail swoop. Your credit debt needs to be paid down to approximately 30% of the balance. If you are working with a lender that can do Rapid Rescore use that and you can update the items at the bureau level later. Worst case scenario you want be on the loan but can be added to title. Search this site for an Originator in your area that is experienced in FHA lending, that is all I do no VA/Conventional or USDA. Check my profile for contact information I am in 28 States it maybe yours. Good Luck and God Bless

Robert B. Summers

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