If you credit score is in the mid 600's, meaning 650 not 605, and you can qualify based on income, assets, and debt ratio, you should not have a problem getting an FHA loan. If you have a good job history, no gaps in employment, that's a plus, but the big thing is what I call the CIA of mortgages, Credit, Income and Assets.

I believe that they may take into consideration job stability, but you would be better off talking to a mortgage broker.

Chris - Your welcome. In terms of ratios, there are two ratios that are used to determine affordability. One is the Housing Expense Ratio (includes all mortgage, principal & interest, property taxes, homeowners insurance and if applicable PMI (private mortgage insurance).The other is Total Expense Ratio (includes all housing expenses plus the monthly payments of any other obligations ie; student loans, revolving charge cards, child support, etc.) If you would like me to refer you to a lender who would help you determine where you stand in terms of getting approved, let me know. There is no obligation to do so. I can also mail you a HomeBuyers workbook that will further explain and help you to track your progress and prepare you for applying for a mortgage loan. if you would like a copy of the workbook, to protect your privacy; you can email me your mailing address at: ccortes@remax.net and I'll get a copy out to you.
Cynthia Cortes
Realtor/Partner
Remax Properties, Ltd.
210 Penns Trail, Suite 100
Newtown, PA 18940
Office: 215-968-7494
Cell: 215-801-9315

Hi Chris
They do take that into consideration but there are certain variables such as union workers for example. They tend to change jobs more often. In this case they take your tax returns into consideration. If your looking in the bucks county area let me know. I lived there and know an amazing agent who can help you!

Hope that helps!!

Century21 Premier Realty
Carolyn M Faden
617 Auburn Ave
Suite 300
Swedesboro, NJ 08085
856-467-1999 Office
609-202-8886 Cell

Thanks for your input Cynthia,

I changed jobs last October as a result of finishing school, but I'm working for the most secure employer there is. Any idea how that will affect me? As far as the ratio's, from my calculations I believe I should have fairly low ratios since the only debt I currently have are student loans and my car payment. My wife has only a car payment. I am trying to be as prepared as possible before I speak with a mortgage broker so as not to waste anyone's time.

Hi Chris - A secure job will certainly help as you will provide your lender with at least 2 years of reported income (W-2's) that has been filed to the IRS. You should also have a satisfactory history of paying your loans and charge accounts on time. You must qualify for the loan in terms of your income as it relates to out standing monthly obligations. Your lender will calculate the percentage of gross monthly income required for monthly mortgage payments (housing expense ratio) and the percentage of gross monthly income required for the payment of all debts (total expense ratio). These calculations are called "underwriting ratios" and help to determine the amount of loan you will qualifty for. Sounds like you are doing the right thing by working to repair your credit score as this will influence the interest rate you will qualify for on your loan. Best of luck. Feel free to contact me direct with any other questions you may have. Have a great day!
Cynthia Cortes
Realtor/Partner
Licensed in PA & NJ
Remax Properties, Ltd.
210 Penns Trail, Suite 100
Office: 215-968-7494
Direct: 215-801-9315