The best way to determine what you'll need to qualify for a loan in the near future is to talk with a qualified mortgage broker or lender in your area. The broker or lender will look at your overall debt, your income, your length of employment, past tax returns, assets and savings (bank accounts, savings, stocks, etc.) and your FICO score to help you plan to reduce your debt and increase your FICO score and stash money away to cover closing costs and a downpayment. Right now, the bad news is that FICO mid-score (the middle score between your highest FICO score and the lowest) must be at least 620 to qualify for FHA loan, and you must have at least 3.5 percent of the purchase price available for a downpayment plus about 10% more to cover closing costs. At $70,000, that would mean having savings of almost $10,000 to comfortably afford a new home.
Talk with a broker today, so that you can plan to purchase a home in the future.
Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA
Co-Host "Naked Real Estate" on http://www.blogtalkradio.com