Chances of being approved for mortgage?
My credit score is 667 and my husband’s is 687 and we make approximately $25,000/year. (I’m a full time student but am graduating in 2010). We looking to buy a house in foreclosure in Indiana for approximately $40,000-$60,000. What are the chances we’d be approved for a mortgage based on our Fico scores and income?
Due to our low income, if approved for a mortgage, we would qualify for down payment assistance and an interest free loan up to 20% of the home cost, as well as the tax credit on next year’s taxes so we’re hoping we have a shot at getting approved.
By the way, we have found several houses in this price range that we’re interested in.
My husband has a $1000 student loan and he only has to pay $50/month but we do pay more most of the time.
I have a $2500 credit card balance and we pay around $125/month to pay it down even though the minimum is $75.
In Indiana, down payment assistance IS available for low income homebuyers.
Your scores are good, but as you indicated the loan is not based solely on your FICO. Different types of loans have different requirements, Conventional, FHA, VA etc. They will look at who you owe, how much you owe, how much you pay out each month. Taking your income, minus your current monthly pay out and 30% of what’s left over is considered affordable average standard (what you can afford to pay on a mortgage) Take in consideration, home insurance and taxes when figuring the bills you will pay out with a mortgage. Your FICA and risk factor based on these figures will also help the bank or financial institution set your interest rate as well. Good Luck!
Source(s):
Semi/Retired from the banking and finance industry
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