Will I likely get approved for an FHA loan?

Asked by Lisa, Chicago, IL Mon Feb 6, 2012

I have a 640 credit score and $10,000 for a down payment. I'm looking at condos in the 40-50 thousand dollar range. I've had perfect credit for the past 13 months before that I had some late payments. I also have a couple accounts in collection that are really old. The thing that worries me is I only make $18,000 a year. Do you think I would get approved or should I wait a while.

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Deborah Smith’s answer
Deborah Smith, Agent, Oak Forest, IL
Wed Oct 24, 2012
Start by gathering your paperwork W-2s,and bank statements and recent credit reports and interview loan officers. May sure you inquire about their first time buyers programs that are offered to fit your needs in obtaining a loan. If you need help I have a list of loan officers that can help you and offer programs for the first time buyer. Debbie Bergthold-Smith Classic Real Estate
0 votes
KK Yan, Agent, Streamwood, IL
Mon Feb 6, 2012
The numbers look good to me. Get a mortgage broker to find out. They will give you more advice to your situation. Couple things though. Lenders and brokers may pull ur credit report. Make sure it won't affect your score. Also, if u concern payment. Pay attention to property tax, HOA, and other monthly fee associated with the property.
Web Reference:  http://Kkyan.com
1 vote
Brock Lee, , New York, NY
Tue Feb 4, 2014
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0 votes
joy.r.sinegar, , Chicago, IL
Sat Jan 18, 2014
The only way it could be determined what you qualify for is if a loan officer is allowed to run and merge credit, verify income off of tax returns or W-2s for the last 2 years. Lastly, then need to take into account the cost of property taxes and monthly assessments to factor your total monthly payments. Call me if you're interested. 815-474-4683
0 votes
Mary Laurent, Mortgage Broker Or Lender, Chicago, IL
Mon Sep 30, 2013
Hello Lisa,

Your best option is to work with a local bank to review your situation and pre-qualify you - you are smart to know upfront your options for a mortgage before you start looking!

Good luck,

Mary Kay Laurent
Associate Vice President of Mortgage Lending
marykay.laurent@guaranteedrate.com

http://www.guaranteedrate.com/MaryKayLaurent

o: 773.516.6859 - m: 312.403.4150 - f: 773.328.1740
0 votes
Christopher…, Agent, Tarrytown, NY
Wed Oct 24, 2012
Hi, Your loan officer should be working the numbers for you at the time of pre approval. I definitely recommend contacting them and if you don't have one yet, call one. The banks have criteria that can change weekly so only they would be able to help you properly.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
William Raveis Legends Realty Group
914.406.9023
0 votes
Maria Cipoll…, Agent, Coral Springs, FL
Wed Oct 24, 2012
Before you start looking for your dream home is very important that you start research for a mortgage broker that can explore all your financing option, mortgage broker have access to many banks, private lenders and many different mortgage programs.

Best of Luck,

Maria Cipollone
Century 21 Tenace

http://www.Flahomespecialist.com
0 votes
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Thu Sep 27, 2012
Good morning Lisa,

Best course of action is to meet with a Local Mortgage Banker. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for. If you are not qualified today and you have to wait, your Mortgage Banker can help you craft an "Action Plan" to prepare for the responsibility of homeownership and a mortgage.

Trevor Curran
NMLS #40140
0 votes
Deborah Smith, Agent, Oak Forest, IL
Thu Sep 6, 2012
Shop around and speak to a few lenders if you contact me I can offer some very good lenders to help
you to secure a mortgage. Keep in mind many condos out there are not FHA approved. You really
need a realtor to weed out the ones that are approved. Debbie Broker Orland Park.
0 votes
Matt Laricy, Agent, Chicago, IL
Mon Feb 6, 2012
Really the best way to find out is to call up a few lenders and see what they have to say.
0 votes
Dick Post, Agent, ORLAND PARK, IL
Mon Feb 6, 2012
Lisa, your best bet is to speak with a qualified lender, to see what your credit score will qualify you for. If you'd like, I can refer to to a top-notch mortgage broker who can help you work your way through the approval process. Just give me a call, (708) 233-3500.
Web Reference:  http://www.RMPost.com
0 votes
Suzanne Hami…, Agent, Orland Park, IL
Mon Feb 6, 2012
Lisa

Talk to a lender. Your credit score is doable and your down payment is good. It costs nothing to talk to them. I can recommend Jim Walsh at Prospect Mortgage jim.walsh@prospectmtg.com. He is downtown and does condo loans. Your debt to income ratio is what could be tight for you based on your income. The fast and easy rule is to take your gross multiply by .42 and then subtract any monthly payments you make to student loans, car loans, or minimum credit cards. Then you can see what is left and how much of a monthly payment you can do. That is a 42% debt to income ratio for affordability. You may be able to do higher than that, especially with your down payment. You will want to keep some for closing costs, but you can go conventional with that down and get a better debt to income ratio. Talk to a lender and then talk to a Realtor to help you.
0 votes
Joe Schiller, Agent, Chicago, IL
Mon Feb 6, 2012
the price of the condo may be an issue- too small, the score is good, and what are you waiting for..to be approved.. there is no obligation to being approved..just move forward with a mortgae broker..but realize there is no money in your deal so I would go to your bank- they owe you help
Web Reference:  http://www.joeschiller.net
0 votes
Barbara Bark…, Agent, Chicago, IL
Mon Feb 6, 2012
It sounds pretty promising. May want to look towards Humboldt Park, Albany Park or West Ridge to get a decent place within your price range.
0 votes
Olthoff Shar…, Agent, Chicago, IL
Mon Feb 6, 2012
Hello, Credit Score in West Town, the previous answer is correct. You should speak with your bank, credit union and/or a Mortgage Banker/Broker. All or one of them will give you a better idea of what you may be able to afford. You should also know that FHA loans are not necessarly driven by credit-score or debt ratio. If you are interested in considering the purchase of a new home in the near future please feel free to contact me. (Sharon Olthoff Broker Associate )I have access to several lenders and I would love to assist you in your search. 773-213-9746
Have An Awesome Day!!!!
0 votes
Sam Sharp, Mortgage Broker Or Lender, Chicago, IL
Mon Feb 6, 2012
The short answer is Yes - I think you are a great candidate
Please contact me to discuss
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
773 290 0455
0 votes
Bill J Delig…, Agent, Naperville, IL
Mon Feb 6, 2012
Yes, it's possible that you would be approved. More information though is needed to prequalify you. Feel free to contact me if you need any assiatance.

Bill J Deligiannis
First Centennial Mortgage
630-788-5288
bdeligiannis@gofcm.com
Web Reference:  http://www.BJDLOANS.com
0 votes
Davis R. Cha…, Agent, Milford, PA
Mon Feb 6, 2012
I would definitely talk to a mortage person....even if you can't get approved right now they will be able to give you some advice as to what to do to bring up your score!
0 votes
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