FHA Score Requirement
Posted 31 July 2012 - 10:03 AM
Posted 31 July 2012 - 11:58 AM
Posted 31 July 2012 - 08:48 PM
Posted 31 July 2012 - 11:59 PM
Each bank can set their own number on the scores - it will vary most want a 640 some will take 620 few will take less
We just got approval today and my lender said 620
Posted 01 August 2012 - 11:02 AM
Posted 01 August 2012 - 11:46 AM
We aren't quite ready yet. DH has scores in the high 700s-low 800s. Mine are in my siggy. They recently dropped due to a new collection which doesn't belong to me, and I am working to get removed (it really does happen!). Also, have some items that are paid, which are currently reporting unpaid. I am waiting for those to update. Our combined DTI is probably in the 15-20%. My DTI is under 10%. I am in a repayment/installment program with the IRS, which probably throws me out of being able qualify in the lower tier.
Thank you everyone for your input!
Secondary question: Do IRA contributions count toward DTI?
Posted 01 August 2012 - 02:19 PM
Posted 01 August 2012 - 03:01 PM
if you have been on the payment arrangement with the IRS for 12 months, it might not put you out of the running, of course this varies from lender to lender, but some that i have worked with can do it with 12 months on time cancelled checks to the IRS, or a letter from them saying you have paid on time for 12 months. the payment towards that would then have to count in your DTI as well. as long as your front end ratio is under 30 (total monthly payments/total monthly income) then you are probably ok for a low end program. then you would just have to be careful about the back end ratio, which will be the main determining factor in how much house you can afford, the back end should be less than 45 for low programs, sometimes as low as 43 (total monthly payments + proposed monthly mortgage payment/total monthly income)
Exciting to know that even though I am not ready, I finally feel like I've made progress!
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