Do I qualify for an FHA loan?
First-time buyer in Austin, Texas, and looking to buy next year. My wife and I have a combined income of $150k which is enough to buy a townhouse in the $250k to $350k range. We pay for credit cards at $300 a month and I have car payments with 5 months left worth $250 a month. Do we qualify for an FHA loan given our current situation? by demmel222 from Austin, Texas. Oct 29th 2021
Barb Lanis (BarbLanis)
#69 ranked lender in Illinois - 679 contributions
Not sure why you are targeting an FHA loan? While they have a lower down payment of 3.5%, if you can swing 5% down, you should look at a Conventional loan instead. Both of these have MIP/PMI, but there is a significant difference in that the FHA MIP is permanent for the life of the loan - Conventional is not. Really the only reason to get an FHA loan is if your fico scores are on the low side. In either case, your auto loan would not count towards your debt-to-income ratios because there are less than 10 months remining.
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,843 contributions
You didn't mention credit history, but assuming that is OK, sounds like you should be fine for home financing. Don't focus on a particular loan. Let your Loan Officer review your situation, and then they will direct you to the loan best for you. FHA is generally not the first choice for clients, unless they have weaker credit. I lend for properties in WI MN IA ND SD. Find me at WI-MortgageBroker.com Cambria Mortgage, NMLS 274132
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