Home loan with 4 month unemployment in last 2 years.

[Adam Anderson]

I want to purchase a home, and want to know if it is possible.

I have not had great credit in the past but currently have a 650 credit score. I have had late pays in the past, but have only 1 late payment on my credit in the last 3 years. My score is slowly going up over time.

The real issue is I was laid off work about a year and 4 months ago. I was unemployed for about 4 months and have been at my current employer for only a year.

I live in an area that has high house rents. I am currently paying $2,400 a month. We are looking at a $75,000 fix r upper. We have about $5,000 saved right now.

Will I be able to qualify for a FHA loan with 3.5% down? Or do I have to wait for another year to have 2 years of employment history. Would I have to have a higher down payment?

Income is $65,000 plus $12,000 a year per diem (Is this counted toward income? The IRS counts it)