Would we qualify for an fha loan?
I'm only 20, husband is 23, credit score is about 650, we have NO late payments or bad marks, we are just young. We're just tired of wasting money renting when buying a house will be half the price of renting for us. My husband makes $40,000 a year. We have NO debt and no car payments/school loans/etc. We are curious if we qualify for an fha loan and if we would be able to get a loan for around $70,000. I know nobody can say for sure but we don't want to throw our phone # out there if we don't even have a chance of getting a loan.
There is no "you need to go get an education" my husband is a reservist in the military AND a police officer. And yeah renting IS wasting our money. I'm also a certified welder but I'm a stay at home mom right now because we can afford it just fine! Don't talk down to me just because you are older.
- BobLv 67 years agoBest Answer
You probably will qualify for an FHA loan provided you can come up with the 3.5% down payment required for FHA financing. A 650 score is good enough to qualify and a monthly payment for that price would be in the $500 range which is well within guidelines for your income.
Your down payment can come from your own funds, a gift from a relative, or from down payment assistance programs. Missouri, like most states has a program for first time buyers that meet median income limits (you do) that offers a 0% interest second mortgage for up to 3% of your loan amount to assist with down payment and/or closing costs. No payments are required and the loan is forgiven if you reside in the home for five years. Details about the program including a list of lenders is available at the link below.Source(s): Licensed Loan Officer in Ohio
- Ms. ELv 57 years ago
If you don't have the down payment for an FHA loan, and can't get the first time homebuyer 2nd mtg Bob mentioned, there is another way to save up the downpayment.
I have a couple of friends who did this recently. Your husband can change his paycheck tax withholding to "exempt". Then, save the extra take-home money until you have the down payment. Then, change the withholding back.
Basically, you will be borrowing the down payment from the IRS. When taxes are due, you can make arrangements to pay what you owe in installments. It works out to be a really cheap loan, and the IRS is easy to deal with. This won't show on your credit report as any debt owed, as long as you don't default on your payments, which won't become due until after you file taxes next April.
- RobLv 77 years ago
sorry to see young folks think - renting is wasting money.
both of you need to get a full education.
keep renting small cheap safe while saving $$$.
both of u need to read and study
house buying kit for dummies, E Tysen.
total money make over, Dave Ramsey.
will save u decades and 10,000s$ in hard
expensive life lessons by learning from
others dumb mistakes, Not your own.
as for 70,000$ house, in most of USA that is
a "tear down" or in the wrong part of town.
most banks do not want loans that little.
as for "rent' vs 'house payments' u didn't
figure in the dozen other costs that will
run u 75 -100% more.
do your learning b4 u get burned.Source(s): builder, landlord 40 yrs experience foreclosure buyer
- Go with the flowLv 77 years ago
- 2 years worth of solid employment
- Down payment + costs. Over 7% of the purchase price.
- Good credit.
If you have any credit cards make sure you pay them in full each month
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- Anonymous7 years ago
No To Young