Will my fiance and I be approved for an FHA loan?

Here's our situation.

Me: graduated college May 2009, had four jobs (though with very little time between) from July 2009 to now - my present job I've been at two weeks, but it's the first full-time/permanent job I've had since college. I will not be moving from this job (though I know a lender won't care about my word). I am salaried at $25,000/yr. Average to Good credit, but only a little, around 720. Just had to buy a car this weekend since mine flooded, payments at $200/mo. for 5 years. Student loans for 12 yrs at $250/mo. Have credit cards, only use them for regular purchases and pay them off every month.

Him: Same full-time job for almost 5 years, but he doesn't make a lot of money (avg. $8.50/hr.). Credit similar to mine, not a lot of it, but probably 730. He has no debt - no loans, car's paid off, never uses his credit card. He IS, however, seeking a new job, as he hates the one he's at and wants to relocate closer to where I work/where we will probably live.

We have about $6000 at this exact moment to spare on all down payment & closing costs.

What are our chances of getting approved for an FHA loan? Looking for houses around $80-$85k. I know the downers are my work history, JUST NOW buying a car, and his low income at his job even after being there 5 years. Will it really hurt if he does start a new job during the application process?


sunshine, I am not inclined to take your answer as expert. I already know we COULD afford the payments and that FHA loans only require 3.5% down (and $6k is certainly more than 3.5% of $85k). I just don't know if we could actually get approved based on everything else.

2 Answers

  • 10 years ago

    Let me start by answering the job question. On an FHA loan, the time in industry, or like type job that most lenders are looking for is 2 years, same type of job. In your case, you have less than the 2 years work history, so I would draw a corelation between what you studied in college and your current job. If you can do that, both of you should be fine.

    As far as him wanting to change jobs mid. loan, I certainly wouldnt recommend it, but if the funding can wait until at least the 1st pay check is received and so long as its a job / industry that he has 2 or more years experience in, you should still be fine.

    The down payment of 3.5% of an 85K purchase would be 2975.00 and you can and should negotiate that the seller pay up to 6% of the purchase price toward your closing costs. This should be fairly easy to negotiate considering the current market conditions. That would mean that your keeping the other 3000.00 in your bank account for reserves, which lenders love to see.

    Your credit score is good enough, I would recommend doing this before the market starts a come back in your area and your priced out.

    Good luck and call me when you need the loan, I'll have you approved in 1 hour!!!

    Source(s): 16 years as a Mortgage Banker / Direct Lender - HUD approved.
  • ?
    Lv 7
    10 years ago

    Your work history is lacking, your 6k is not enough for down payment and closing costs,

    Your income is inadequate and you have too much debt.

    Just check a mortgage calculator online

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