Of all those that lend for mortgages, who would be the most lenient in lending with younger-than-12-months lates? We're hoping to be able to buy within roughly 6-8 months (our lates will turn 1 yr old in April '09).
Everything else is good (I think):
DTI (approx 40%), housing DTI 24%
In industry 15 years, present job 7 years;
makes over $90K/year
Have $40K to put down on $200K loan (so, amount needed would be around $160K)
$10K reserves
His scores 600ish, should be 650s+ by January
My scores high 500s, should be 600ish by January
Our only REAL problem is the recent lates (a 120+ April '08 on a SL, and a 30 day in April on car loan).
I know that its been said that $40K down will cure a bunch of credit woes, but who would be the most lenient in overlooking the lates?
TIA!! And please forgive me if I'm nagging!!
Everything else is good (I think):
DTI (approx 40%), housing DTI 24%
In industry 15 years, present job 7 years;
makes over $90K/year
Have $40K to put down on $200K loan (so, amount needed would be around $160K)
$10K reserves
His scores 600ish, should be 650s+ by January
My scores high 500s, should be 600ish by January
Our only REAL problem is the recent lates (a 120+ April '08 on a SL, and a 30 day in April on car loan).
I know that its been said that $40K down will cure a bunch of credit woes, but who would be the most lenient in overlooking the lates?
TIA!! And please forgive me if I'm nagging!!
@ShanetheMortgageMan wrote:It'd all be underwritten using FHA Total Scorecard anyway, the system is the exact same for all originators, be it a broker, lender, or banker. If you go with a lender or banker, the options could be more limiting than a broker since a broker usually has 100+ lender relationships at their disposal. The best way to proceed though is to ask all of your questions up front before your credit is pulled... that way you'll be able to determine what is the best route for you based on the answers you get.
Please don't think me incredibly stupid, but I don't think I understand. If, because of our lates and the Total Scorecard requirements, we'd not qualify, why would using a broker be more beneficial in terms of options?
I don't think I understand the impact lates has ... or am I over-estimating the impact lates have??
Again, I'm really sorry to be so dense!!!
@Anonymous wrote:
@ShanetheMortgageMan wrote:It'd all be underwritten using FHA Total Scorecard anyway, the system is the exact same for all originators, be it a broker, lender, or banker. If you go with a lender or banker, the options could be more limiting than a broker since a broker usually has 100+ lender relationships at their disposal. The best way to proceed though is to ask all of your questions up front before your credit is pulled... that way you'll be able to determine what is the best route for you based on the answers you get.
Please don't think me incredibly stupid, but I don't think I understand. If, because of our lates and the Total Scorecard requirements, we'd not qualify, why would using a broker be more beneficial in terms of options?
I don't think I understand the impact lates has ... or am I over-estimating the impact lates have??
Again, I'm really sorry to be so dense!!!
For example there is one lender we work with that will refuse FHA loans if they have any 60 or more day lates on them, or any new judgments, in the last 12 months. They will actually override the FHA Total Scorecard recommendation and do what they please... it's pretty lame, and we never send any loans to them, but there they are with their silly overlay guidelines. So if you go to a direct lender who gets you approved via FHA Total Scorecard, but then requires you pay certain collections or upon further review doesn't approve you because you don't meet their internal guidelines (which they might or might not tell you up front) then you would've just wasted a credit inquiry & time trying to get a loan from them. That is the importance in making sure you are applying with someone who fully understands your situation.
If you didn't qualify via FHA Total Scorecard, then it's a moot point... you wouldn't have any options to go to as no lender is going to be willing to fund an FHA loan with late payments in the last 12 months because it won't qualify for FHA insurance.
Shane, thanks for explaining it!! I don't know how you and Dallas manage to keep all that confusing stuff straight in your heads!!
Well, if it matters, our SL servicer just GWed a bunch of lates off our CRs. So our youngest late on our SL will be in December '07. But we do have two 30 day lates from Jan and April on our car note (and we WILL be doing our best to GW them, too!).
Would those be forgivable in a lender's eyes if we apply in January '09? Would they be willing to forgive a single 30 day late in April for the last 12 months?
Thank you so much for all your TIME and HELP!! I know it ain't easy!!
Well, if it matters, our SL servicer just GWed a bunch of lates off our CRs. So our youngest late on our SL will be in December '07. But we do have two 30 day lates from Jan and April on our car note (and we WILL be doing our best to GW them, too!).
Would those be forgivable in a lender's eyes if we apply in January '09? Would they be willing to forgive a single 30 day late in April for the last 12 months?
Thank you so much for all your TIME and HELP!! I know it ain't easy!!
Wonderin wrote:
Shane, thanks for explaining it!! I don't know how you and Dallas manage to keep all that confusing stuff straight in your heads!!
Well, if it matters, our SL servicer just GWed a bunch of lates off our CRs. So our youngest late on our SL will be in December '07. But we do have two 30 day lates from Jan and April on our car note (and we WILL be doing our best to GW them, too!).
Would those be forgivable in a lender's eyes if we apply in January '09? Would they be willing to forgive a single 30 day late in April for the last 12 months?
Thank you so much for all your TIME and HELP!! I know it ain't easy!!
It's like riding a bike or learning how to throw a baseball... after awhile it just becomes 2nd nature. Then when there are updates you just have to remember what the updates are. It is a lot of information but somehow I am able to cram it all inside my head.
That's great news on the SL, you should probably see a nice score increase.
With the other lates in 1/08 & 4/08, the only way it's going to be found acceptable is if you pass FHA Total Scorecard... which I think you will have an excellent shot at doing since your large down payment.
@ShanetheMortgageMan wrote:
@Anonymous wrote:
Shane, thanks for explaining it!! I don't know how you and Dallas manage to keep all that confusing stuff straight in your heads!!
Well, if it matters, our SL servicer just GWed a bunch of lates off our CRs. So our youngest late on our SL will be in December '07. But we do have two 30 day lates from Jan and April on our car note (and we WILL be doing our best to GW them, too!).
Would those be forgivable in a lender's eyes if we apply in January '09? Would they be willing to forgive a single 30 day late in April for the last 12 months?
Thank you so much for all your TIME and HELP!! I know it ain't easy!!It's like riding a bike or learning how to throw a baseball... after awhile it just becomes 2nd nature. Then when there are updates you just have to remember what the updates are. It is a lot of information but somehow I am able to cram it all inside my head.That's great news on the SL, you should probably see a nice score increase.With the other lates in 1/08 & 4/08, the only way it's going to be found acceptable is if you pass FHA Total Scorecard... which I think you will have an excellent shot at doing since your large down payment.
Well, you're obviously of a special breed! I'd be the kid in that "Far Side" cartoon raising his hand and asking to be excused because "my brain is full!"
I don't know HOW you do what you do, but I sure am glad you DO it!!
Thank you, Shane!! I am so happy now!! I've been worried about this day and night, day and night, day and ... you get the picture!
So we'll go ahead and apply (hoping that FHA doesn't get uglier by then) in January!
Do you s'pose they might let us slip by in December? Or would that be pushing our luck?!
YAY!!! Thanks again!! You is DA man!!
{{{{Hugs!!}}}