FHA loan

[charlie77]

What is the name of your state? Illinois

whats the requirements to be approved for an FHA loan and what is the cost of the house you can get, is there a limit. im a first time homebuyer with bad credit but im paying off all the debt i have in my credit report i just got around 1500 left to pay off to have my report debt free. my balances were delinquent which im almost done paying off except for the 1500.00 i still have left. i havent been banckrupt or anything like that just bad credit and my wife has better credit then me but not great. what are the chances of being approved for the fha loan.

[LindaP777]

Do you have any down payment at all?

[HomeGuru]

Originally Posted by charlie77

What is the name of your state? Illinois

whats the requirements to be approved for an FHA loan and what is the cost of the house you can get, is there a limit. im a first time homebuyer with bad credit but im paying off all the debt i have in my credit report i just got around 1500 left to pay off to have my report debt free. my balances were delinquent which im almost done paying off except for the 1500.00 i still have left. i havent been banckrupt or anything like that just bad credit and my wife has better credit then me but not great. what are the chances of being approved for the fha loan.

**A: contact a mortgage broker that specializes in FHA loans.

[HUD-1]

You may also want to speak with a HUD approved, non-profit housing counselor. They can help you assess your credit. [url]www.hud.gov[/url] (click on "Information for" Homebuyers) or you can call 1-800-569-4287

Income guidelines for FHA approval are 31% (PITI/Gross Monthly Income) and 43% (all debt/gmi)

[charlie77]

yes we got a down payment, we just wanna be sure we can get approved for it. and i will have no debt once i pay off all my balances in collection

[VeronicaLodge]

you realize that even though you pay off the debts that are in collection, that wont clean up your credit rating, right? they will still show as being paid late, etc. and will affect your ability to get loans and such.

[charlie77]

ya i know it wont help right away but did notice my score went up a bit now that the balance im my report has gone down. so being debt free and making descent money wont help with an fha loan?

[FrustratedMommy]

When I looked into this they generally want to see at least 6 months of new, good payment history. Get a secured credit card, buy a weeks worth of gas, pay off all but $5.00. Do that for 2 months then in month 3 pay the full balance. It doesn't have to be a high limit. They just want to see that you can pay bills on time.

[charlie77]

well i do have cd loan from a bank which i have to pay monthly and that suppose to help u out with your credit, but i was late 30 days once and thats cause i totally forgot about it. but other then that its always being paid and i just got 3 more months on that.

[TheGeekess]

Originally Posted by FrustratedMommy

When I looked into this they generally want to see at least 6 months of new, good payment history. Get a secured credit card, buy a weeks worth of gas, pay off all but $5.00. Do that for 2 months then in month 3 pay the full balance. It doesn't have to be a high limit. They just want to see that you can pay bills on time.

Don't do this!!

Make a 'zero-balance' budget (every dollar spent on paper, including savings). Pay your rent on time. Save all other monies, except what you need to live. Make sure you have an emergency fund. Cut up the credit cards. Get rid of them. Paying the rent/utilities on time will help establish your 'creditworthiness'.

[charlie77]

well rent is always paid on time, i just wanna be sure i can get approved for the fha loan. im already working with someone thats helping me out with that and i told him what are our chances but he's not really sure and since my credit is bad, not real bad but not fair either, i wanna know my chances. Since its not based on credit from what he said what are the other requirement that can guarantee me getting approved. How can other people who arent citizens or illegal immigrants able to get a house so simple but us citizens cant, that sucks. nothing against illegals or nobody like that i just want it as simple as them.

[LindaP777]

Originally Posted by charlie77

How can other people who arent citizens or illegal immigrants able to get a house so simple but us citizens cant.

They have good credit and a large down payment, that's how. First time home buyers can easily buy a home if you have good credit. Both of my children have bought homes within the last year and a half. Good credit is undervalued and understated in this country.
Charlie, you seem to want to blame others, when you have run it off into the ditch. You have no one to blame but yourself. Good luck.

[Andy0192]

Originally Posted by LindaP777

Good credit is undervalued and understated in this country.
Charlie, you seem to want to blame others, when you have run it off into the ditch.

Yeah - everyone seems to have the idea that bad credit can easily be 'fixed' because of all the advertisements they see all the time. Think of credit as being as important as your reputation. Once its tarnished, its kind of hard to get it back.

Take your time, save some money, get your financial reputation back on track, the market doesn't look like its firming up anytime soon, so you should have time to get some good deals.

[FrustratedMommy]

Originally Posted by TheGeekess

Don't do this!!

Make a 'zero-balance' budget (every dollar spent on paper, including savings). Pay your rent on time. Save all other monies, except what you need to live. Make sure you have an emergency fund. Cut up the credit cards. Get rid of them. Paying the rent/utilities on time will help establish your 'creditworthiness'.

The reason I was told to do so to reestablish credit is if you pay it to 0.....it may not report on your credit at all. That was from the woman in the office wanting to give us the loan, but we had to reestablish.

[charlie77]

Im not blaming anyone i just wanna how they can do it and i cant, i know this mexican lady has no money saved up lives on check to check and has liek 2 or 3 jobs part time and somehow was able to get a house. thats what i wanna be able to do also.