02-23-2013 06:05 AM
My husband was the only signer on our mortgage note. However, I was listed on the HELOC. We defaulted on both to B of A in August, 2011. The short sale closed in October 2012. The only negative on my report is the charge off on the HELOC. All other payments have never been late. My FAKE-O score is 725. I recently paid off my motorcycle loan with Honda and that is not yet reflected. My car will be paid off with Chase in December or sooner if I choose. I expect my score to increase somewhat. So, if I leave my husband off of the mortgage, do I still have the 3 year wait with FHA and 2 year with conventional?
02-23-2013 03:11 PM
A 725 FAKO score means absolutely nothing. It could relate to a 500 FICO score for all we know.
Without getting an idea of atleast one true FICO score, I wouldnt even appease the idea.
Paying off installment loans usually do not play a major impact in FICO scoring. You may see an increase, you may not, and a small few have actually lost points once the installment loans were all paid off since it changes your mix of credit.
With the short sale closing just a few months ago, your HELOC is also part of the short sale.
Generally speaking without getting in to major detail, most Lenders will not approve you with any missed, late payments, etc etc.. within the last 12 months on any home loan.
The next issue you may run into depending on how much was owed, what if they require you to pay it off? Not saying they will, but it is possible as a condition.
Suggestion would be to find out what your FICO score is or atleast one of them at minimum, and see what you may have to do to improve them if needed. If your scores are in a qualifying state in your situation 640 and up and the higher the better. Then keep your present credit obligations in order, no missed payments, no lates, etc etc..
You could try USDA (if qualify in area and income resrtictions) for a faster turn around on waiting period, or VA.
As of right now even if FHA would accomadate your situation with a shorter wait period, since you have had a home loan with missed, late, or non payment on your HELOC you would still probably have to wait a minimum of 12 months.
Now another option you have is to look into the NACA program and see if thats something you qualify for.
02-23-2013 06:38 PM
Thanks. We are not required to pay off the HELOC. The amount was $150k, but all of it was spent on home improvement. We keep receipts, too.
i'm leasing a home until May 2014 and would rather buy than extend the lease. Fixer upper homes that are priced under $500k get snapped up in a few days. I need to be ready to act a when one appears. In the Seattle area, it is a seller's market with inventory at 4 months supply.
I make about $120k annually and my husband makes $100k. My husband lost his job, looked for work over 3 months, then we had to move for him to find work. We moved from Tampa to Seattle.
My credit card ratios are good, have high limits, and established credit for over 20 years. I will get my real FICO score. I get all my scores annually and the have been the same or higher than my fake-o score, but things change.
02-23-2013 07:15 PM
Thats a little while away, things may change by then. I would probably start looking into your situation later this year around the December time period or early next year the January time period.
Find out what you would need at the present time, and how the HELOC being included in short sale will impact things.
Start saving as much as you can and keep rebuilding both your credit scores and credit profiles in the mean time. The objective is to show an excellent responsibility towards credit usage since the default (short sale considered default even if havent missed a payment).
You will be a home owner again, just a few steps that may take a little time have to take place first.
03-24-2013 04:10 AM
I decided to pull my scores to take a look. My TU is 681 and EQ is 687. Both show the charge off for the short sale and my last late payment 7 months ago. Other than student loans, I should be debt free by December.
It looks like we will be extending our lease for another year, maybe two, to try and save more money. Our rent will be going up from $2795 to $2845. It would be cheaper to buy, but I haven't found anything comparable to the house we owned in Florida for under $1 million. House prices suck in the Seattle area!
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.