General Credit Topics

[Boswd]

Let's say in the past you have defaulted on your student loan, but you have back in good standing, got your other baddies on your report squared away and your score has gone up and improved on your trade lines.     How much of an affect does a defaulted student still hold against you when looking for a prime mortgage?    I know it will raise a red flag but  is it an albatross you sitll have to wear until it falls off your report  like BK?

[motoracer]

do they look at lates the same as defaults?

[Boswd]

bump

[OneMortgageGuy]

When going Prime you have Conformimg and Non-Conforming. Conforming is following Fanniemae guideline and Non is following Fanniemae but the bank will make exceptions.

Prime they look at income, credit, assets, and loan to value. Lets say that you have zero assets and high DR... Well that's a deal killer for prime but lets say your default is a few years old and caught up... your DR is around 30% and you have 20K in you checking or 401K (for 401k you can only use 70% of the value). Well now your in good shape as long as it is caught up and not a collection. If it's a collection plan on paying.

Most big company's us what's called a Desk Top Underwriter and yes it's a program and not a person. The DU will tell you if it approved or if it needs manual underwriting. 99.9 of the time the underwriter will just check off the DU. You don't get to see all this but that's kind of how it works.  

[Boswd]

Ok so it's not such an albatross you have to wear as long as you get your DTI ratio down, get all badies squared away and increase your assets.   Am I correct in this assumption?

[OneMortgageGuy]

I dont know what your scores are and I dont know what is would do for your credit to pay it off. My views are from a loan officers point of view and how to make loans work.

If your DTI is fine then you will be fine. As long as you are now paying.

[motoracer]

trying to buy a home with a "va" loan in the winter my scores are TU 603 EQ 622 EP 619

My income is 145,000 per year same job 3 years

my total monthly debt with child support is per month is low 2375 

3 baddies on my credit report 3 charge offs 3 years ago all paid in full

no collections

one 30 day late pay in 12 months HD credit,,,,was out of the country (long story)

I think i will be considered sub prime correct?

[OneMortgageGuy]

You could be ALT-A . Thats not subprime but not prime... If you can get a VA loan thats going to be your best bet.

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motoracer wrote:

trying to buy a home with a "va" loan in the winter my scores are TU 603 EQ 622 EP 619

My income is 145,000 per year same job 3 years

my total monthly debt with child support is per month is low 2375 

3 baddies on my credit report 3 charge offs 3 years ago all paid in full

no collections

one 30 day late pay in 12 months HD credit,,,,was out of the country (long story)

I think i will be considered sub prime correct?

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