Home Buying in Canton>Question Details

shanejobrien, Home Buyer in Canton, MI

I have a 620 and make $55,000/yr, wife has 720 cs and makes $0. Can we get an FHA loan?

Asked by shanejobrien, Canton, MI Tue Feb 19, 2013

Been paying rents of $950 together for 6yrs, and figured it is more cost effective to buy. ie; $150,000 mortgage with 3.5% down = $800/mo mortage.

This question was asked from this property: http://www.trulia.com/property/3063256095-3975-Hopefield-Ct-…

Help the community by answering this question:


You may qualify for FHA with 650 score. Aside from the credit score, some lenders will also look at stable and steady income. Look for lenders who have trusted records of approved/closed loans.

Dana Lindberg
CFS Mortgage - http://www.cfs203k.com
0 votes Thank Flag Link Sun Sep 15, 2013
This home is not for you... I was just there.. We could get you a home.. and based on your husbands credit score he can do FHA.. your credit score should be helpful. regardless of your income.. I also know based on what you are saying. You should qualify for the mishta program which is wonderful.. its a grant that's given to new home owners up to $7500 contributed to your closing costs.. I'm not sugar coating anything but I will direct you to all your options.. But It will be a team effort and If i know you truly want this.. Then I will get it done if there's any possibility.
Give me a call 313-702-9332.. Lets chat and and get acquainted a bit .. and I will send you to the right lender... and we will begin from there
Im Kathy Christo .. If your interested give me a call.. if nothing else you will get some things answered
0 votes Thank Flag Link Tue Feb 26, 2013
I have a great mortgage broker. Call me and I'll give you her information, she also does FHA-203K and they have a new program with a $3,000.00 buyers credit for closing cost.
0 votes Thank Flag Link Tue Feb 26, 2013
Shane (nice name by the way), your calculations on the monthly mortgage payment are going to be a little bit off.

Assuming a 3.25% interest rate (4.247% APR), the principal & interest portion of the payment is going to be: $640.98/mo (that's a $144,750 loan amount + FHA's 1.75% upfront mortgage insurance premium = $147,283 loan amount)
Homeowners insurance estimated at $900/year, or $75/mo.
Property taxes (per the listing) are $4,181/year or $348.42/mo
FHA's mortgage insurance (at the current 1.25% calculation) would be $150.78/mo.
Total payment would end up being $1,215.18/mo.

Depending on what your other debt payments are (car, credit cards, student loans, etc.) your $55k/year of income may or may not be enough. For example (just making these numbers up) if you had a $400/mo car payment, $200/mo in credit cards, and $150/mo in student loans, and that was it... then you should be looking alright as far as the income is concerned. If you have much more payments than that, the debt to income ratio starts getting a little bit high, but still can qualify if we are able to get an automated underwriting approval.

Your credit score of 620 is fine for FHA financing with a lot of lenders, some are requiring a 640 score though. But it's not just about your credit score, it's also what is on your credit that is making your score 620 (vs., say, a 720 like your wife has). Generally for FHA financing you'll need 12 months of clean credit (24-36 months if you had a Ch 7 BK or foreclosure). If you have a copy of your credit report I'd be happy to review it to see if there is anything that would be preventing you from qualifying. Your wife's excellent credit doesn't offset your bad credit, but it can definitely help as a 'compensating factor' when the underwriter is reviewing everything.

Shane Milne | Lending in all 50 states | NMLS #81195
shane@thebesthomeloans | 949-273-4161 direct
0 votes Thank Flag Link Tue Feb 19, 2013
your credit scores are good enough for an fha loan. your income and debt ratios could be an issue.
please call me at 586 663-3433 at your convenience.
best regards
Penny Bradley
Associate Broker
RE/MAX in the Hills

direct 586 663-3433
0 votes Thank Flag Link Tue Feb 19, 2013

your credit scores are good enough to get an fha loan. Other factors are your income ratio and debt ratio. please contact me at 586 663-3433 to discuss this
best regards
Penny Bradley
Associate Broker
RE/MAX in the Hills

direct 586 663-3433
0 votes Thank Flag Link Tue Feb 19, 2013
You should not have a problem. The best thing to so is call a mortgage company and see if you can get approved.

Jon A. Ruud
0 votes Thank Flag Link Tue Feb 19, 2013
Sounds promising for you to get a loan. I have a great mortgage broker. Call me and I'll give you his contact information. I also have a small local bank who is making loans to people who cannot get a mortgage through traditional lenders. Call me at 248-930-0198.

Kathy Persha, Realtor
Nextage Advanced Realty
0 votes Thank Flag Link Tue Feb 19, 2013
While I am not a lender, a lender I work with CAN do your loan if you're putting some money down.
Generally, a 640 score is required for FHA, but they can go as low as a 580 with money down under certain circumstances.

Also, being that you're a 1st time buyer, you may additionally qualify for the $3000 MSHDA grant program as well to help with the purchase.

Let me know if you want some help in getting in touch with the right people to get the process started.
0 votes Thank Flag Link Tue Feb 19, 2013
FHA loan requirement have a pretty strict debt to income requirements. The total mortgage payment (principal and interest, escrow deposits for taxes, hazard insurance, mortgage insurance premium, homeowners' dues, etc.) cannot amount to more than 31% of your income. With an annual income of $55k, you are qualified up to a $1,420 per month payment.

Your total debt (all mortgage costs above plus any other debt payments such as car loans, personal loans, student loans, credit cards, etc. cannot exceed 43% of your income.

Below is the link to FHA's loan requirements:
0 votes Thank Flag Link Tue Feb 19, 2013
It's a possibility that u may pull a mortgage. You just need to get that credit score I believe to a 650. This isn't much . I have a lender who can help u.. unfortunately with ur wife not having an income. Kinda makes it more difficult.. I can help direct u. And nothing is impossible. This is obtainable. Call me let's chat
312/702/9332 Kathy
0 votes Thank Flag Link Tue Feb 19, 2013
FYI: We would be both 1st time home buyers, and worried that being denied a mortgage would really hurt our credit.
0 votes Thank Flag Link Tue Feb 19, 2013
If you apply for a mortgage and get denied it will not have a negative affect on your credit. You might take a point or two hit for an initial credit pull, but that is all. More than likely the lender will not be able to use your wife's score because she shows no income. Like everyone is saying here, usually 640 is the magic number for an FHA mortgage with 3.5% down payment. The right lender will help you make that 20 point jump to get to that magical 640 score. I have several great lenders that have done the exact thing for several of my other clients and I would be happy to provide their names as well as some past and present client references to you. As a first time home buyer you should also qualify for the $3000 MSHDA grant that can be directly applied to your out of pocket purchase expenses. Make sure you work with a lender that will get you set up with this great program no matter what you do.
Boyd Rudy
855-BOYD-RUDY toll free
Flag Tue Feb 19, 2013
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