What are the chances we would qualify for a FHA Loan?

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My husband and I are trying to clean up our credit as it is not very good. I have been browsing houses online and found one that I have absolutely fell in love with from what I have seen. It is listed for 69,000 we do not have good credit, when I pulled a credit report on us I got a score of like 592 for each of us. When I spoke with a Mortgage company he told me we did not have credit, after he pulled a credit report on us. We do not have any credit cards, just a dept. of ed loan from my husband back in 1998 and then some med bills and a few other things. No car payments as we own our car. We have less than a combined total of 5000 in debt.We are meeting with a real estate agent Weds night who said he may be able to help us find programs either for our debt or to help us get a house, I do not remember which he said. I have read a little bit about the FHA Loans and am not sure about them. My husband does not make much money he makes 400 a week before taxes.So approx 19,200 a year I know it’s not much. I do not work as we have 2 children ages 2 and 5 months. I have been trying to sell avon but it isn’t working so far. Can anyone give me any info on the FHA loan or what the chances of us getting one are? I have applied for a secured credit card through our bank and we were both denied.

  1. Reply
    Common Sense
    February 19, 2011 at 7:37 pm

    592 is too low and your income is too low to qualify anyway. If you were denied for a secured credit card your credit must be far worse than 592. Recheck it.

  2. Reply
    February 19, 2011 at 7:48 pm

    It can’t hurt just to talk, but I don’t think you are going to qualify…

    If your FICO score is below 620 and your income is below $ 20,000 per year and you don’t have at least $ 1,800 cash for a down payment, you are not going to qualify for a $ 65,000 house.

    At this moment in time it is extremely difficult to get a loan (any loan) with a FICO score below 600. There is a general credit freeze on all new loans to those with poor credit.

  3. Reply
    kelly w
    February 19, 2011 at 8:32 pm

    Honestly it sounds like you guys should wait on a house. What if something happened and you needed to pay for repairs? I know what your going through we were in the SAME boat. I stay home with our two kids and my fiance works. I had no credit and he had bad credit. We just kept renting (still are). I put some utility bills in my name and then went to a credit union and opened a savings account. Eventually I built it up enough that I got a credit card through the credit union and I have pretty good credit now.

    My fiance also joined the credit union, he was able to go ahead and get a checking account through them and eventually after paying off a few medical bills, and with time some of the worse stuff fell off his credit. We were able to get a car using our credit union to finance it and got a hell of a % rate. That helped him because once the bad stuff was gone he just didn’t have any revolving credit.

    Now we’ve put an offer on a house and were waiting on the bank. It just takes time. See what the agent has to say and just do little by little then you can look at more expensive houses and you wont have to settle. Good luck!!

  4. Reply
    February 19, 2011 at 9:06 pm

    You cannot afford a $ 69,000 income. I speak from experience. I make pretty close to what your husband does each year, but I only have 1 child. In addition, my credit was in the high 700’s. I bought my first home last year and have a $ 64,000 mortgage. My mortgage payment is $ 586.66/month (with principle/interest, pmi, taxes, and insurance). If you were approved (which you won’t be with that income for a 4-person household and that low of a credit score), could you afford $ 600-$ 650/month in a mortgage payment? You’ll still have to pay for utilities and all of the other necessary household items. That’s going to be about 90% of your husband’s monthly pay just going to mortgage and utilities… you can’t afford that. Keep renting for awhile. Keep working on improving your credit score and wait until he’s making more income, or you’re working again as well.
    I know it can be frustrating to rent when you want a home, but it’s more frustrating if you lose your home to foreclosure because you can’t afford payments. Good luck to you.

  5. Reply
    God is Good
    February 19, 2011 at 9:46 pm

    I am Mrs Amy John,currently living in texas,USA.I am a widow at the moment with three kids and i was stuck in a financial situation by may 2009 and i needed to refinance and pay my bills.I tried seeking loans from various loan firms both private and corporate but never with success,and most banks declined my credit.But as God would have it,i was introduced to a man of God a private loan lender by name Mr Endurance Dawn who gave me a loan of $ 28,000USD and today am a business owner and my kids are doing well at the moment.So dear,if you must contact any firm with reference to securing a loan with low interest rate of 3% and better repayment plans and schedule,please contactMr Endurance Dawn.He doesn’t know that am doing this but am so happy now and i decided to let people know more about him and also i want God to bless him more.You can contact him through his email at endurancelendingfirm@gmail.com

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