What disqualifies a house from being approved for a 203k?I gross about 26K a year. Even though I worked all throughout college, because they were internships, my work history looks unstable. I thought I should go with an FHA loan because of that, and the benefits of rolling closing costs into the loan, but an agent told me that a house within a reasonable price range for me would likely not qualify as so many have lost on their housing investment and just want to get rid of it without putting in any more money to fix the problems that would pass an FHA inspection. I live in Peoria, IL, a low cost of living city, and was looking for houses that I could just start out in, so under 60K. Even if the house needed a little work, I'd be willing to do it, but I don't know if I could come up with closing and a 5% down payment. I graduated college about a year ago, but I have had several lines of credit since I was 18, including 4 active credit cards and a car loan that has been paid off for a year and a half. The only monthly debts I have are an approximate credit card payment of 60 a month and student loan payment of 107. My credit score is 720. I have about 5K for closing and down payment. I guess I would like to know if I would qualify for either an FHA loan of about 80K or if I would even be able to qualify for a conventional loan, given that I have the minimum 5% down, even if it was at a slightly higher rate. I'm going to talk to a lender tomorrow to get pre-approved, but there are some houses that I would really like to move on as quickly as possible and I am looking for some guidance. February 07 2011 - Peoria0YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.