Mortgage Loan (insurance, good credit, student loans)

[Cpinnock1]

Good Afternoon,

I am presently seeking a mortgage loan since the beginning of the year. I have been employed in the same line of duty for three years and is presently working with a temp agency since July of this year again in the same line of duty that I previously did with the other company. My previous company was a salary while this is hourly paid. The city where I reside has a first time home buyer program and is assisting me with the 20% of the purchase price of this property. I have already found a property and has a contract. My credit is good. The mortgage officer at the bank is getting ready to submit the application to the underwriter and to do appraisal next week.
Please not that there were never a lapse within my employment history. I am assigned with a company but I am paid by the temp agency. I am a full time W2 hourly employee working 40 hours per week (8 hours a day). I receive all benefits from them like insurance, etc but I am still an hourly employee.
How is my chance of getting an approval from these underwriters?
Please advise.
Thank you.

SPS
Florida

[JohnD_fla]

Underwriters don't all calculate risk in exactly the same ways. Some lenders are more strict than others about certain things. For instance, your employment. Even though you have been in the same line of work for 3 years you wrote that you are working for a temp agency. They may ask you to explain how you plan to keep up the mortgage note if and when your temp assignment ends. They will look at your debt to income ratio, and if you have debt they will rate different types of debt differently. For instance, low-interest student loans with low monthly payments are usually not a big deal---even if the balance is high. But, they take a closer look at auto loans and high-interest credit cards with high balances on them. Loans that you co-signed for other people are calculated into the mix as well.

You should ask the lender directly. The loan officer should have a good idea of how the underwriters will rate your application. Unfortunately, some of them will not give you a straight answer about this even if they know that the odds are not in your favor, especially if they charge an application fee. They get to keep the application fee whether you are approved or not.

I'd say you have a decent chance of getting an approval if you have good income and your DTI is good. You're putting 20% down, you have good credit, and your employment has been consistent. By the way, congratulations on getting the home buyer assistance. I didn't know that these programs were still around. Good luck to you!