Posted on: 16th Sep, 2009 12:20 pm
I make about 56k a year, i have a credit score of 680 and have no debt, ive worked at my job for over 10 years. Im looking to purchase a house with a price of 110k.
Hi Tcordova, With a fico score of 680 you can qualify for an FHA loan which requires 3.5% down payment minimum. They will also check work history which youve got already with 10 years, No debt always looks good. They will also check your recent bank statements and recent pay stubs. But the numbers you have provided look to be in your favor in getting a loan. There are other factors that they will check to get a loan.
Your housing debt ratio will be about 25% or less and FHA allows 29% by their guidelines and automated underwriting will probably let you go much higher.
House debt plus other monthly debt on the credit report can go up to 41% and you have no other debt, so, your total debt ratio is 25% or less.
That is a lot of mortgage talk to simply say that as long as you have money for the down payment and closing costs, you are way overqualified to do what you want to do.
House debt plus other monthly debt on the credit report can go up to 41% and you have no other debt, so, your total debt ratio is 25% or less.
That is a lot of mortgage talk to simply say that as long as you have money for the down payment and closing costs, you are way overqualified to do what you want to do.
I dont know why you guys are trying to jam FHA down his/her throat when he never discussed his down payment options. If there is the ability to put at least 20% down, then FHA may not be the best option.
