FHA approval

[renriq02]

what did you use? LP/DU/DO?

Originally Posted by Sub-Urban Princess

You did...

You know in our business that you have to be specific because there is tons of info that can be misconstrued by the common borrower.

To tell them they will get declined if they have less than two months is not always true. Generally, we are at the mercy of the automated underwriting systems...agreed?

Just today, I had a 624 FICO...45% back end ratio go through and she had a 1/2 month reserves...It was weird but the machine liked it...

[Sub-Urban Princess]

Originally Posted by renriq02

what did you use? LP/DU/DO?

I used DU...It was surreal...In addition, she had lots of recent collections but they were ALL paid off...

The only open tradeline she had was

3 credit cards..one of which was just opened in 9/2008....the other two had late pay activity that dated back to 4/2008 but they were at zero balance.

That was definitely one that I walked around to a couple of cubicles.

[bentz69]

Thanks for the info everyone. I think I'm going to wait for the summer before I start the loan process. Possibly June b/c I have a raise coming in July. I would like to possibly pay off that personal loan. 10,000 for 3 years...currently 12 months in with 7k left on it. I think this would be beneficial in closing the percentage gaps and maybe help push my loan through. What do you think?

Ive heard that a loan that will be paid off in 10 months (I believe) does not count when they are considering your debts? Is this true? So maybe just pay a little more then half of it instead?

I want to keep as much cash as possible for my down payment and closing costs.

[Daddys///M3]

Originally Posted by bentz69

Thanks for the info everyone. I think I'm going to wait for the summer before I start the loan process. Possibly June b/c I have a raise coming in July. I would like to possibly pay off that personal loan. 10,000 for 3 years...currently 12 months in with 7k left on it. I think this would be beneficial in closing the percentage gaps and maybe help push my loan through. What do you think?

Ive heard that a loan that will be paid off in 10 months (I believe) does not count when they are considering your debts? Is this true? So maybe just pay a little more then half of it instead?

I want to keep as much cash as possible for my down payment and closing costs.

It is.