topic Re: Would I qualify for a mortgage? in Mortgage Loans

Would I qualify for a mortgage?

westo12 — Wed, 03 Oct 2012 17:50:46 GMT

Credit. Scores TU627, EQ634, EX605 – No plans to app until 04/13, when most recent late hits 1 yr mark. Plan in meantime is to pay down debt (approx 62% util) to increase scores, as well as have some derogs removed.

Positives-Never Lates
Type / Opened / Bal / Limit / Util

CC - 06/2008 - $2689 / $3000 / 89%

CC - 10/2008 - $620 / $809/ 76%

CC - 06/2009 - $10 / $320 / 1%

CC - 11/2010 - $6 / $300 / 2%

CC - 05/2012 - $0 / $300 / 0%

CC - 09/2012 - $0 / $500 / 0%

CC - 09/2012 - $0 / $200 / 0%

Loan - 05/2012 - $2936 / $3103 / 94%

Loan - 06/2008 - $6k - closed/never late/pd in full

CC - 10/2008 - $0 closed/never late/pd in full

CC - 06/2008 - $0 closed/never late/pd in full

CC - 10/2008- $0 closed/never late/pd in full

Loan - 05/2003 - $1k - closed/never late/pd in full

Negatives

Late Payments

Santander Auto Loan – Opened 04/2010 Bal $13780 – Five (5) 30 day lates in 2 yrs, 03/12, 11/11, 10/11, 9/11, 6/11. Reporting Current/Paying as agreed now.

KDs

Paid Collection –$300 – Date added 09/11 - PFD accepted/removed est 10/18/12

Paid Collection – $300 – Date added 02/11 - PFD accepted to be removed 10/18/12

Unpaid Collection – Utilities- $331 Send PFD. Date added 02/11

Unpaid Collection – Medical $312 – Date added 09/10

Unpaid Collection – Utilities $195 – Send pfd – Date added 08/10

Unpaid Collection – Medical $260 – Send PFD Date added 04/07

Paid Chargeoff - $0 – DOFD 12/06

Unpaid Chargeoff - $0 - DOFD 01/06

Income. Currently Approx $67k
Source of income. Employment/Hourly + Court ordered child support, will get for 2 more years.
Monthly debt payments. Currently is $580 (Goal is $500 at app time)
Employment W-2, Full time, currrently employed 3 years.
Assets/Reserves. Savings/IRA $12k
Location. California, Alameda County.
Property. Single family house/Good condition
Value. $225k-$275k.
Occupancy. Primary residence
Transaction Type. Purchase/Most likely FHA or FHA 203K

Re: Would I qualify for a mortgage?

Blackhawks_girl30 — Fri, 28 Sep 2012 14:56:03 GMT

I'm not an expert, but just from my experience that recent late payment is most likely going to be automatic denial for FHA loan. In my opinion I would take the next 6 months to pay down the balances on your credit cards, this would give you a score bump. Hopefully the collections will accept your PFD =) I started 2 years ago with a 580 score, 16 collections, 90% utilization on my credit cards. I'm now at 3% utilization, 2 paid collections that won't budge with goodwills, and a 712 score. I say work at it for 6 months and you will be in a much better position for approval! Good luck =)

Re: Would I qualify for a mortgage?

westo12 — Fri, 28 Sep 2012 15:36:18 GMT

I did say that I wasn't planning on app'ing until my most recent late hit the 1 yr mark, which is an FHA requirement.. :)

And your story is exactly where I expect to be this time next year as well!

Re: Would I qualify for a mortgage?

jdirilo — Fri, 28 Sep 2012 15:52:00 GMT

On a side note, my dad lives in Alameda County. Love it there!

Re: Would I qualify for a mortgage?

westo12 — Fri, 28 Sep 2012 15:57:27 GMT

jdirilo wrote:
On a side note, my dad lives in Alameda County. Love it there!

Me too. :)

Re: Would I qualify for a mortgage?

westo12 — Sun, 30 Sep 2012 22:41:21 GMT

Anybody with any experience in this area have an input? I sure could use it!

Re: Would I qualify for a mortgage?

westo12 — Sun, 30 Sep 2012 22:41:41 GMT

*any input, I meant.

Re: Would I qualify for a mortgage?

aussiesareforever — Sun, 30 Sep 2012 23:24:52 GMT

I think you would have to be prepared to write LOE for your lates and collections. You have quite a few and your underwriter will definitely have questions about those.

The price of the house you are looking for also appears to be a little high for your income.

Your plan for paying down your debt and waiting until your lates are older sounds great. Good luck!

Re: Would I qualify for a mortgage?

westo12 — Mon, 01 Oct 2012 17:37:19 GMT

Thanks Aussie!

Re: Would I qualify for a mortgage?

DallasLoanGuy — Mon, 01 Oct 2012 17:53:51 GMT

i dont know anything about taxes/insurance there.... so i cannot comment on det ratios.

but when the lates are 1yr old, you will be fine.

i would wnt a good letter explaining(loe) the past derogatories.

letter format:

1. what happened?

2. how did you deal with it?

3. what steps have you taken to assure it doesnt happen again.

the loe will want to match the credit report.

Re: Would I qualify for a mortgage?

westo12 — Mon, 01 Oct 2012 18:17:09 GMT

THANKS Dallas. One last question. My most recent late on the report shows 03/12, which was reported by the lender in 04/12. Would I need to wait until 04/13 to apply, after they post the 03/13 statement info? Or does that late become a year on 3/1/13, which means I technically could apply on 3/2/13? Sorry to get so detailed on this part.

Re: Would I qualify for a mortgage?

tuckandroll — Mon, 01 Oct 2012 18:26:53 GMT

I don't believe FHA requires 1 full yr of no lates. I had one 8months ago and I was all set.

Re: Would I qualify for a mortgage?

westo12 — Mon, 01 Oct 2012 19:24:25 GMT

tuckandroll wrote:
I don't believe FHA requires 1 full yr of no lates. I had one 8months ago and I was all set.

I know each lender has different requirements, but aren't they supposed to adhere to FHA's exact ones? Like the 12 months of no lates for example?

Re: Would I qualify for a mortgage?

tuckandroll — Wed, 03 Oct 2012 13:52:02 GMT

westo12 wrote:
tuckandroll wrote:
I don't believe FHA requires 1 full yr of no lates. I had one 8months ago and I was all set.
I know each lender has different requirements, but aren't they supposed to adhere to FHA's exact ones? Like the 12 months of no lates for example?

Can you show me where it states that you can't get approved if you have a late within the last 12 months?

This is my source look under "late payments" heading. Says nothing about previous 12 months.

http://www.fha.com/fha_requirements_credit.cfm

Re: Would I qualify for a mortgage?

westo12 — Wed, 03 Oct 2012 17:55:36 GMT

I've been searching all over the HUD website for this info, and I haven't seen anything that says 12 months of no late payments either. Anyone have info otherwise?

Re: Would I qualify for a mortgage?

tuckandroll — Wed, 10 Oct 2012 18:02:27 GMT

I met with mortgage broker yesterday, he said no issues with this. My last late was Nov of 2011.

Re: Would I qualify for a mortgage?

westo12 — Wed, 10 Oct 2012 18:04:05 GMT

Wait, from a previous comment I thought you already went through the loan process?

Re: Would I qualify for a mortgage?

tuckandroll — Wed, 10 Oct 2012 18:07:38 GMT

westo12 wrote:
Wait, from a previous comment I thought you already went through the loan process?

Prequal with one yes. Now I am getting the loan underwritten with a TBD address.

Re: Would I qualify for a mortgage?

westo12 — Wed, 10 Oct 2012 18:09:58 GMT

How do you go through UW with a TBD address?

Re: Would I qualify for a mortgage?

tuckandroll — Wed, 10 Oct 2012 19:54:25 GMT

This company will do underwriting with TBD address. It seems really neat. http://www.atlanticbay.com/

They approve you up to a limit you choose / and qualify for underwrite the deal with contingencies. Has to appraise for that amount or more, etc.