Having worked with many young couples liked yourselves who have bought a home in the Wesley Chapel area, We are very knowledgeable about what it takes to get it done. Every deal is different nowadays since the banking rules and regs have changed so much in the last year. What I suggest is to find a very reputable mortgage broker, who will work with you, even if the going gets tough. I would interview about 3. Banks cannot offer you any other programs other than what they have. All banks have differing versions of their "overlay", which puts a buffer between the banks minimum requirements and what the actual requirements are from FHA or USDA, etc.
Let us know if we can help.
If I were you, I'd sign up for a secured credit card and build up your score by paying consistently and on time, spending only 25% of the available credit on the card a month. Pay ALL your bills on time and ONLY pay up on debt you've incurred in the last 1-3 years and pay them at a monthly pace on time, consistently as opposed to paying it all off at once (that doesn't help your credit either) anything older than 4years..leave it be..it comes off in 7 years and might make your credit WORSE if you pay it! (I know....What?!)
I found a site that's TOTALLY free and you can get your score, it evaluates any debt you have and they send you email updates on changes on your reports. It's called Credit Karma. It's an amazing way to really stay on top of your credit situation. Patience, Consistency and Timeliness is key to getting your score up there.
I'm currently trying to find owner financed homes or rent to own, so that I can get into a house now and work on building my credit so that in a year or so I can try the lenders again. Maybe you should consider those options, the only tough part about that is they usually ask for a heavy down payment (10%) and they are HARD to find! Good luck. I hope all of this helps you out and you get the house you've been wanting!!
Credit score FHA, and USDA middle score 620 or above.
Credit score VA (veterans only) 580 with automated underwriting accept finding
Credit score Conventional 80% LTV 660
Credit score Conventional above 80% LTV 680 95% LTV 720
Income: Same job field for 2 years or recent graduation from school with degree in related job field.
Fall into income to debt ratio of published guidlines of loan product (see below)
Fha 31/43, USDA 31/43, VA 41/41 and residual income calculation, conventional 28/36 (note compensating factors such as savings, larger down payment, high credit scores allows ratios to go as high as 50/50 on all products except USDA.) (USDA allows up to a 45 with an energy efficient home).
Collateral (the house): Must appraise for the sales price. Most be in habitable condition and have no safety concerns. Must have a roof life of 3 years or greater. On all loan products...even conventional. If the house does not meet minimum standards a FHA 203ks renovation loan would be the answer to that problem. (min 5k in repairs to 35k maximum)
Published FHA credit scores allow as low as a 520 score with a large down payment. But try and find a lender that actually will do it is another thing. Above is today's reality.
Based on your credit score you are very close. Work with a lender who will review the credit report and make suggestions that may improve your score.
Many reports have errors and can be fixed very easily witht he right help.
I work with Mary Rhodes of the Mortgage Firm. 352-383-3046.
She has been working with USDA type loans over 25 Years.
you will need to talk with a very good mortgage broker. If you did not get your credit score from a mortgage broker, the credit score you quote could be incorrect. Let me know if we can give you the names of a few very good mortgage brokers.
I would recommend contacting a couple banks/lenders and asking them. They will ask you a few questions to find out how much you are making, what your current expenses are and check your credit and they will be able to give you advice about different loans you may be eligible for. Please feel free to contact me if you would like some names of lenders I have worked with in the past for first time home buyers.