FHA Loan Approval? What are the chances?

I seriusly doubt you will get it, you have a very high DTI (debt to income ratio) and YES the underwriter will include your deferred payments because you will eventually have to pay them with in the next 30 years (the term of your mortgage). Just because the banker, mortgage broker who ever said they think you are fine, really means nothing. It is the underwriter who will make the final decision. I have seen people get clear to the closing table only to learn that they lost their mortgage due to a change in their DTI. 11,000 is very high DTI for only making 2500 a month.

Probably not very good. Your front end ratio is 35% (shouldn't be more than 31%) and your back end ratio is 56% (shouldn't be more than 41% and that doesn't include your student loans.

http://www.fha-home-loans.com/debt_ratios_fha_loan...

Also you will have to add in an additional 1/2% expense for the FHA insurance if that wasn't included in the calculations.

Even if they approve the loan, I wouldn't recommend that you purchase the condo. After utilities, car insurance, gas, car maintenance, phone, and taxes, you probably won't have more than 20% of your income remaining for other expenses (food, clothes, entertainment, etc.). Also many credit card companies are currently raising interest rates on credit cards (allowed for another 9 months without having a reason) and if that is done, you will be in big trouble.

And the worst thing you can do is pay your mortgage payments with loans from your credit card.

First, student loans are considered in mortgage loans. It will be calculated on what you currently owe. You say $150 a month on credit card, but what do you actually owe. Banks go by the debt to income ratio because they do recognize what the credit score is (in this case yours is good), but they look at how many bills you have on a monthly basis and what do you actually make and what are the balances on the debts. So you make $2500 a month, but what are your total debt value. Also keep in mind rates change daily and there starting to rise slightly and without a contract on a home, you will not be locked in on a rate. Thus, 4.50% is not exactly a definate. Also you may want to shop around for homes. I just got a great deal on a house because of the current market status.

FHA is more lenient, but not THAT lenient. You have bad credit and a lack of income. Not enough money for a down payment and closing costs. You need to get your act together before you dream about owning a house, you are not even close to ready.