Home Buying in 76123>Question Details

Alvin05, Home Buyer in 76123

Will I qualify for an FHA loan?

Asked by Alvin05, 76123 Sat Jun 16, 2012

My wife and I have FICO scores right at 640 with bumps and bruises from a while back. We had a foreclosure in 2007. We only have about $2000 in cash. We each make at least 38,000 per year. We both have a car payment. I have 2 credit cards, and she has 1. I also have 2 installment loans from a retailer. All are paid on time. I think the main issue is the cash for down payment, closing costs, earnest money, etc. Should I even attempt to purchase a home yet (looking for one under $120,000)?

Help the community by answering this question:


You would be required to have 3.5% or more as a down payment and closing costs. Recommend confer with a mortgage broker who will review your loan app.

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
Multimillion Dollar Sales Producer

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1 vote Thank Flag Link Sat Jun 16, 2012
As the others have said. Really outside of our realm. Contact a lender and they can tell you what you can qualify for and programs that might assist you. Let me know if you need any lenders recommended.

Brian Rickard
1 vote Thank Flag Link Sat Jun 16, 2012
Hi Alvin,

Your first step is to discuss your option with a local and competent loan officer and mortgage broker.
They are the experts on this arena/field.

1 vote Thank Flag Link Sat Jun 16, 2012
I would be interested in what your history is after the foreclosure, and what the circumstances of the foreclosure were.

If the household income is near $80K you may not be eligible for a USDA loan because of the income cap, even if there are kids in the family.

I would wonder about your debt ratio, if you make a good income but only have $2000 in savings. You'll need about $3500 to fund your escrow account.

I don't want to sound harsh, but you've had a foreclosure, and as soon as possible want to buy a home, with no money saved. Take a look at your budget and see if more can be saved, or pay debt.

If you can get the escrows saved (~$3500) it would go long way for me to help with the rest. Check out my company's website at http://www.NACA.com

John Lyng
Mortgage Counselor-NMLS #280951
NACA-Neighborhood Assistance Corporation of America
972-283-1171 x1363
0 votes Thank Flag Link Sun Aug 5, 2012
Thank you for taking the time to go in such personal detail and believe me I hear and understand your concerns. The mortgage company I use will except credit scores starting at 620 and higher. Without going so far into detail I noted two things that you should be careful with. You can ask for up to 6% seller contributions off of total list price this will help you with you closing costs tremedously. However, FHA requires you to pay 3.5% down in order to finance. Your foreclosure in 2007 will be a huge bruise. Be careful you don't fall into the trap of having your credit run numerous times with multiple mortgage companies attempting to find one that will qualify you. I understand your need to buy your next estate and I applaud you for taking care of business just be careful not to run your credit down further in the mean time. If your looking for a few referrences I could aim you in the direction of an excellent Senior Loan Officer that will handle your case with great care and tell you exactly what needs to be done. If you require further information contact me directly.

Keller Williams Realty
3xUS Army Veteran/ Real Estate Consultant
Joseph Fernandez
cell: (817)975-7258
off: (817)635-1157
website: http://www.blissful-estates.com

ps. Once you contact me just tell me you need to speak with my Senior Loan Officer I'll get your squared away... Thank you
0 votes Thank Flag Link Thu Jun 21, 2012
I saw that the zip code you are looking in is in far south Fort Worth. Since you say that you have limited funds available to pay for down payment and closing, would you consider moving a little further south into Crowley? I mention this because in Crowley you could apply for USDA Financing which requires no down payment and has qualifications that are similar to FHA. If trhis is something that interests you please contact me and I will be happy to answer any questions that you may have.

John Straub
Keller Williams Realty
0 votes Thank Flag Link Mon Jun 18, 2012
There is still much to be known about your scenario before a good loan officer could prequalify you. We will use the lowest mid-score for credit guidelines. So "right at" isn't enough detail. Then your minimum payments on the credit cards are used in the total debt ratio. But the down payment would be the main issue, if the other items are OK. FHA allows for gifts from family or close friends. You might have IRA or 203k funds to access. You might need to save a little more, but the seller can pay up to 6% of the sales price for your closing costs and prepaid items. You might also check to see if the areas you like are USDA eligible. That program allows for 100% financing, and total seller payment to closing costs and prepaids.

Good luck!

Barbara Coker
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas for 30 Years!
Web Reference: http://www.thecokerteam.com
0 votes Thank Flag Link Sun Jun 17, 2012
Good rule of thumb I use :
Gross Monthly income X 41%. Take that answer and do not let your recurring monthly debt exceed it. Recurring debt is car pmt, new house pmt, credit cards and Any monthly installments you make. Down pmt minimum FHA is 3.5%. Subprime mtgs exceeded these ratios and look what happened. I am a realtor and for further evaluation you should contact a loan officer. I know some great ones. 33 yrs experience as a realtor 817.980.1047
0 votes Thank Flag Link Sat Jun 16, 2012
Dear Alvin,

There are many real estate agents in the field who do not learn much about financing, and therefore, they can offer no real opinon to address your question. There is no doubt in my mind that you can buy a house! We just need to work out the details...

You will find that my clients like my service, and once I have your email address, I can forward you some of their comments about their experience under my wing. I can guide you through the whole process of buying a house, and with my 32 years of experience, I have certainly done it many times before!

We need to have a consultation to go over the details of your situation. We will work out a plan that will lead to you getting a home in the near future. There is no fee for this service, and even though I will represent you as the buyer in the transaction, my commission is paid buy the seller. I will specifically outline for you how much cash is needed out of pocket, and I will make certain there are no surprises for you. We will go together to the closing table, and I will ascertain in advance that everything is in order. You will know up front what it is going to cost you.

So give me a call, or send an email, and we'll get started. I'm available on Weekends, too.

Best regards,

Rick DeVoss

---ULTRA Real Estate Services



0 votes Thank Flag Link Sat Jun 16, 2012
Well I think everyone agrees you need to talk to lender. Call or email me and I will hook you up with a great lender.

Kim Sullivan 817-797-4707
Shawn Jackson 817-521-0125
The Michael Group
0 votes Thank Flag Link Sat Jun 16, 2012
The only thing about your profile that concerns me is the cash.
You need 3.5% down.
Now, that can some as a gift from a relative/employer/ ect

I would be happy to take your call and talk about your situation and loan prospects.
Let me know if I can answer any follow up questions.

Tom Burris
Mortgage Banker
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
0 votes Thank Flag Link Sat Jun 16, 2012
Hello Alivin05,

The best way to find out is to talk to a lender. They will go over every detail with you and let you know what you qualify for. If you are interested in talking to a couple of lenders let me know and I will be happy to give you their information.

All the best,

Cheryl Wages
Coldwell Banker Residential Brokerage
0 votes Thank Flag Link Sat Jun 16, 2012
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