Good catch. I zeroed in on Georgia Atlanta at top. Clay not likely to be able to assist but hopefully a VT lender will offer input and assistance. My other input will still be pertinent.
With $3K monthly income, the VA qualifying guideline of 41% debt to income would indicate that you would be eligible for $1,150 monthly total mortgage payment. Not sure the real estate tax or home owners ins rate in GA, but a $165K loan would be $788 approx. monthly, so adding $360 ( if you qualify for entire real estate tax being exempted you would have $300 more monthly to use so up to $230K would be possible though not likely as high as you plan/need) for those 2 items would put you at $1,150. Perhaps Clay Branch from GA will respond with more accurate #s for taxes and ins.Thank you for your service and good luck.
On a conventional loan program the automated underwriting results will determine if the collection acct will need to be paid off. It is likely that it will not be a requirement but only takes a few minutes to find out with all of the other details i.e. income, assets, job history, credit as part of the AU submission. I am in Dallas so click on my picture and read my Profile and Reviews, and contact me if you want to discuss further.
Mike gave a good answer -twice- which is why this blog is much more helpful than Josh's " Go visit with 3 different lenders......." but wait that is Josh ( the agents) answer to every mortgage question. You will get even more specific advice if you respond with current mortgage balance, interest rate, and how long you plan to own the property.
You have done your homework! Based on your scenario, you would be eligible for an FHA loan. I would first do a review of your scenario to see if there is a possibility that you would meet Fannie's extenuating circumstance. Contact me thru my Profile, and we can discuss specifics. I am a Texas lender.
There really isn't any reason for a lender to charge an origination fee. Closing cost can be rolled into new loan, and some lenders do not require an appraisal though that is not as common. More likely to be found with current lender though. Buying the rate down is only worthwhile for those planning on owning the property for more than 5 years. I would expect a rate a little less than in the middle of what you mention without buy-down cost. Largest part of closing cost are actual the pre paid items to set up the new escrow acct, and you will receive a refund after closing from lender that has your existing escrow acct. Closing cost and prepaids including .50% funding fee should not exceed $4,600. I am in Texas so let me know if you want more information.
I disagree with others........... having been unemployed for 2 years will likely require min of 6 months on the current job and could require a year depending on whether program is FHA or conventional. Contact one of the posters that is licensed in FL and get pre approved prior to house hunting. You will find out what employment conditions their underwriting requires. Your assets and strong credit score will be a plus....
To add to my previous post........ be sure the letter you receive is a Pre Approval and not a Pre Qualification. A Pre Qualification letter is a complete waste of your time, the Agent, and Seller, too. To receive a Pre Approval letter you would need to supply USAA/lender with most recent pay stubs, bank statement, last 2 years of W2's, Loan Application with job history, and they would pull a credit report and secure an automated Underwriting Approval. Self employment requires last 2 years tax return, too. A Pre Qualification could be as simple (and as useless) as a Loan Application because in some cases it may not include a credit report review. It is unlikely in this market environment that an Agent or Seller would even consider an offer with only a Pre Qual letter..........
Jared,Your Short Sale : Conventional - is out of date. As of 8 months ago 4 years is now min for short sale. Could be less with extenuating circumstances that are very unlikely to be acceptable to a lender.
Mark,All of your contact #s will be removed by Zillow as a violation of their Good Neighbor Policy.Jared gave a good answer. As an aside the term Realtor should always be capitalized as it is Trademarked by National Assoc of Realtors..