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In the last 12 months have you ever been 30 days late on your mortgage or rent?
Do you have some active seasoned revolving or instmnt accounts?
If your monthly payments and your proposed mortgage with taxes insurance included equals 50% or less of your current gross monthly income and you are a W2 employee with a steady 2 yr. work history, you should be ok.
You will have to put down 3,500.00 3.50% FHA lends 96.50% with 1.00 MIP added to that amount.
Your annual MI which is paid monthly, will be 0.90
So your P&I will be about $520.00 your monthly MI will be around $75.00 per month and estimated taxes and insurance at $300.00 (maybe less)- your total estimated payment = around $895.00. Add this to your other credit card payments and car payments that appear on your credit report. Lets say your total monthly obligations for revolving and auto loans personal loans ect.. is about $500.00 per month (min payments on revolving) that = $1,395.00 Now lets say your gross income is $2,800.00 per month- $2,800.00 x 0.50=$1,400.00 if you make at least $2,800, you should be fine with this scenario based on worst case rates- I am using yesterday's pricing because rates are not published yet, today.
You can use gift funds for some or all of the down payment but you will need a standard gift letter with proof of funds having been withdrawn from the donor's account and deposited to your account-you will need to show bank statements for both transactions.
Hope this helps
Florida Mortgage Coach