Question Details

bryantk7, Home Buyer in Southfield, MI

Looking to buy a home in the next 3-4 months. My score is 683, husband is 634. Would we be approved?

Asked by bryantk7, Southfield, MI Sun Jan 29, 2012

Our DTI is approx 33%. Income is about 54K. We don't have much to put down.

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Answers

3
Yes, I would go with an FHA mortgage. Minimum score is 620. Conventional might be higher rates and more strict guidelines
1 vote Thank Flag Link Sun Jan 29, 2012
bryantk,
FHA requires 3.5% down, but it can be gift funds from a relative. USDA offers 0 down, but there are restrictions as to where the property may be, it's targeted to rural areas. The rates are all pretty competitive, in the low 4% range. You'll have to meet with a local lender to be qualified and quoted the rates for the program you choose.
You say your DTI is around 33%, how did you calculate this? A lender will only use your credit obligations, like credit cards, car loans and the new mortgage. If this is how you did it, you may not have much to work with as most lenders will cap out at 45% combined. You may find that if you pay down or off some debt you'll both improve the credit scores and your buying capacity. Talk to a local lender to get a more complete picture of what may be possible. Best of luck.
0 votes Thank Flag Link Sun Jan 29, 2012
What type of loan could we qualify for? What about the interest rate?
0 votes Thank Flag Link Sun Jan 29, 2012
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