Profile picture for mpropst106

Can I be approved for a loan?

 I graduate from college in May. I have already signed a contract with a company in Winston-Salem, where I will be making 45,000/year. I have 2 credit cards (totaling $450) & a personal loan ($1500) these are to help build my credit; they will be paid off prior to graduation. I have a car payment of $196. Outside of that, I don't have any other debts. My credit score is between 620-680, I'm not sure but it should increase when I pay off my minor debts?!  I worked part time for Starbucks for 3 years. I left there in June 2009, to accept an internship. The internship turned into the full-time offer, in which I accepted, upon graduation. I also have continued to work part time with this company while I finish my college career. So by the time I apply loans I will have been there for 9-11 months. My start date for full time employment begins July 2010. However, I would like to close & move prior to that. I would be able to afford my mortgage payments with my part time pay. I have a few thousand saved; however, I don't want to use it for a downpayment unless I must. I have around 3-5% that I can use if necessary. I am looking for a loan around $100,000-116,000, for a townhome. I estimate payments around 800/month, which is why I want to purchase as opposed to renting. The places I am looking at renting are in the same price range, so if I don't have to, I don't want to throw $850/month to rent when I can put it towards a mortgage. Is purchasing a feasible option? What kind of loans should I consider, being a first time buyer? I have found a few townhomes, could I offer a lease w/puchase option if I can't get a loan? Thanks so much!

  • January 20 2010 - Winston-Salem
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Answers (4)

Profile picture for Memphis Owners12
Rest assured, new graduates easily obtain mortgages shortly after graduating.  The time spent earning your degree counts towards the two-year work history in the same line of work that you've probably heard about.

FHA is a strong option for you.  When you talk with a lender who has your specific information, have them explain how FHA will benefit you and your situation.

USDA is a no-money down option but applies only to rural areas.
  • January 21 2010
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Profile picture for Scobe
I agree with andy, you also can look @ a 3/1 Arm FHA loan that may help you in the beginning. This is a Goverment loan NO big Rate Increases, this will help you with low monthly payments in the beginning so you may pay down your debts ( Student Loans). Then your Mortgage will increase where you can afford your monthly payments when they get a little higher..... 
  • January 21 2010
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Is your FT job going to be in your field of study? What is your current income from PT job?  Your current dti (debt to income ratio) could still be a deal killer.  The bottom ratio(housing + monthly bills) needs to be below 50%.  You may also find that an Underwriter would require 6 months reserve savings in this market which could be a deal killer unless you have a family member that can gift you the 3.5% down for FHA loan.  In this current environment, Underwriting is tougher and even if you fit the FHA guidelines, you may have trouble finding a bank to lend.

I imagine you want to take advantage of the tax credit so you would want to be sure that you get under contract by April 30th.

You will not find properties in the city limits of the Dash that qualify for USDA financing, though.
  • January 21 2010
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Sounds like a viable mortgage approval upon graduating and receiving a paystub from your future employer.

You will have two good mortgage options. FHA(3.5% down) and USDA(0% down).  Just depends on your savings and where you choose to live.

HOA dues on a townhome of

Sounds like a viable mortgage approval upon graduating and receiving a paystub from your future employer.

You will have two good mortgage options. FHA(3.5% down) and USDA(0% down).  Just depends on your savings and where you choose to live.

HOA dues on a townhome of $100=$17,500 per month more that you could spend on a single family home at a 5.50% rate. Weigh the appreciation rates of townhomes v/s single family homes before deciding what is best.

My opinion= Avoid a lease option purchase inless the property is a steal.


Sounds like a viable mortgage approval upon graduating and receiving a paystub from your future employer.

You will have two good mortgage options. FHA(3.5% down) and USDA(0% down).  Just depends on your savings and where you choose to live.

HOA dues on a townhome of $100=$17,500 per month more that you could spend on a single family home at a 5.50% rate. Weigh the appreciation rates of townhomes v/s single family homes before deciding what is best.

My opinion= Avoid a lease option purchase inless the property is a steal.



My opinion= Avoid a lease option purchase inless the property is a steal.


  • January 21 2010
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