50% Down / 610 mid / Can I get a home loan?

[durak]

I have credit issues from 4+ years ago that are keeping my FICO score low.  I currently make about $80k a year, have no debt and would like to purchase a $160,000 home with 50% down.

Is it possible?

Thanks.

[Anonymous]

It might help if you can provide your FICO scores that you know and some insight on your "credit issues".

Late payments, BK, liens, judgments, foreclosures, repos, collections? Paid or unpaid?

[medicgrrl]

I would think that if your issues were from 4 years ago that your scores would be higher.  Are you sure that is what is affecting them and not utilization or lack of credit?  Are the items from 4 years ago paid?

[durak]

Sorry for being vague with the credit "issues".

Foreclosure, repossession, late pays, charge offs, you name it, I had it...It was pretty ugly.   I have paid off some of the items (charge offs,etc) but some are still on my credit.  Since then I did mangage to get get a credit card and auto loan, I paid off both.

My scores are approx. 557/610/618. (My scores have actually increased in the past 2 years from low 500', I think at one point I had a 498 or something like that.

[Anonymous]

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@durak wrote:

Sorry for being vague with the credit "issues".

Foreclosure, repossession, late pays, charge offs, you name it, I had it...It was pretty ugly.   I have paid off some of the items (charge offs,etc) but some are still on my credit.  Since then I did mangage to get get a credit card and auto loan, I paid off both.

My scores are approx. 557/610/618. (My scores have actually increased in the past 2 years from low 500', I think at one point I had a 498 or something like that.

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If you recently paid the chargeoffs then they are hurting your score because it gave them a new date which to fico makes it look like they are new. As far as the foreclosure , that has to be atleast 3 if not 5 years old before the bank/broker can allow you to purchase another home even with 50% down. You need to get your mid score to 620 to qualify for a fha loan

[medicgrrl]

What is left unpaid?  Is the credit card the only open account you have? Can you verify 12 months of rental and utilities with no lates?   I would definitely suggest obtaining credit approval first.  You may easily get an exception to the credit score requirement due to the very low LTV.  How are your qualify ratios?

[durak]

I have not paid off a repo ($8k), credit cards, cell phone bill, medical bills.  Some of the stuff I have paid off, for instance, I had another $5k repossession that I settled for $1500, still appears as an open account. 

I can prove 12 months rent and utilities no lates.  The only open account I have is the credit card which I occasionally use and then pay off immediately.

I am not sure what you mean by qualify ratios..

[medicgrrl]

That is too much outstanding.  They are going to want all of that paid.  Maybe you should look at paying off all your old stuff and putting less down.  Even at 60% LTV I think you would be able to get a credit exception.  Contact a local broker and let him help you with getting a credit approval.  You may be better off not paying these items til closing.  That way your credit score won't be affected until after the loan closes.

[Anonymous]

So you've managed to save $80,000 in the bank yet you haven't paid all of these past due balances??  I'm not sure I understand.

I think you need to investigate PFD agreements with your past creditors.  You have to admit, a bank SHOULD be concerned about lending to that credit history.

[durak]

Good point.  Keep in mind the original problems were 5+ years ago, I struggled financially for a few years after that, as in living with friend/family and pawning everything I had.  Fortunately I landed a job paying $150k for a couple years and that is how I got to where I am now financially.

I have paid off approximately $2k and probably have $10k outstanding.  I am reluctant to pay the rest because on some credit reports  even the stuff I have paid off still appears on the report.  I haven't got any letters or phone calls from collections for a couple years, so I also wonder who I am even supposed to pay at this point. 

Trust me, if I could write a check today for the past due accounts and was guaranteed that the accounts would be settled and my fico would go up I would do it.

What is a PFD agreement?