Can I qualify for a mortgage loan?

[radfam]

1. Mortgage Credit Scores:  
 - TU 632, EQ 616, EX 590

2. Credit Negatives: 

1 med collection 2013 for $200 (still unpaid, working on PIF/PFD) on all 3 CRs

1 med collection 2012 for $285 (paid, didn't know better at the time to ask for PFD, working on GW now)

15 adverse accounts total:  History of late payments on installment accounts (last 30day late was 6 mo ago on auto loan, now have everything on autopay), nearly all adverse accounts (11 in total) are closed federal student loan accounts that have since been consolidated.  Some of those SLs are reporting as "was a charge off" or "payment after charge off."

1 GM auto loan "Paid in Full/Was a Charge Off" (Bal reporting $0)

3. Gross Income.  $102,000  

4. Source of income.  Where is the income coming from? List each source.

• Full time Employment - 89k
• 10% annual bonus - 8900
• child support - 3600

5. Monthly debt payments. 

• Lease Vehicle Payment- $564 with 4 years left on note
• Student Loans: IBR $324/mo. Consolidated loan amount is approx. 110,000. 
• 2 credit cards ($300 CL - $0 bal; $1000 CL - $40 bal)

6. Employment (for those who are employed). 

• Type of employment: Full time employment for 2y10m at current company 
• How long have you been in the industry/career field: 5 years

7. Assets/Reserves. This is to determine how much you could potentially have as a down payment and also as reserves to help qualify (for example if your debt to income ratio is high this could help qualify you anyway).

• Savings- $18,000 
• Checking- $4500 

8. Location:  This is to determine govt guaranteed loan limits, what special programs might be available for you, how much property taxes & homeowners insurance will likely be, amongst other items.

 - Houston, TX

9. Property Description: 

• single family home (Self, Spouse, and 5 kids)

10. Property Value. 

• Purchase transaction: Price range <$300k

Additonal Info:

I am currently rebuilding my credit report to position myself better for a mortgage, hopefully around summer 2018.  As for rebuild, I recently opened a second CC within the last month to help with my revolving accounts.  Keeping one CC at $0 and the other at or below 8% balance, already both on autopay.  I am GWing my lates on auto accounts and on one cap1 CC.  I do have a very high amount of lates on my CR, so I'm hopeful for some GW success but obviously I cannot rely on that.  

My spouse brings in an additional $60k annually but when we moved from one state to another in 2014, we lost our home (in his name only) to foreclosure when we couldn't keep up with two house payments simultaneously.  That house was listed for over a year but the housing market in my home state was dismal and we only had two showings the entire time.  That home resold after the bank took back posession in 2016 I believe but husband still hasn't gotten the finalization of foreclosure from banks or courts.  It does show up as a foreclosure on his CR.  That home loan was FHA so if we went that route this time, he would not be eligible yet.  As it stands, this prospective home loan would likely be in my name only and I would be a first time home buyer.  We have been in our current rental home since 12/2014.  

[radfam]

1. Mortgage Credit Scores:  
 - TU 632, EQ 616, EX 590

[radfam]

2. Credit Negatives: 

[radfam]

1 med collection 2013 for $200 (still unpaid, working on PIF/PFD) on all 3 CRs

[radfam]

1 med collection 2012 for $285 (paid, didn't know better at the time to ask for PFD, working on GW now)

[radfam]

15 adverse accounts total:  History of late payments on installment accounts (last 30day late was 6 mo ago on auto loan, now have everything on autopay), nearly all adverse accounts (11 in total) are closed federal student loan accounts that have since been consolidated.  Some of those SLs are reporting as "was a charge off" or "payment after charge off."

[radfam]

1 GM auto loan "Paid in Full/Was a Charge Off" (Bal reporting $0)

[radfam]

3. Gross Income.  $102,000  

[radfam]

4. Source of income.  Where is the income coming from? List each source.

[radfam]

9. Property Description: 

• single family home (Self, Spouse, and 5 kids)

10. Property Value. 

• Purchase transaction: Price range <$300k

Additonal Info:

I am currently rebuilding my credit report to position myself better for a mortgage, hopefully around summer 2018.  As for rebuild, I recently opened a second CC within the last month to help with my revolving accounts.  Keeping one CC at $0 and the other at or below 8% balance, already both on autopay.  I am GWing my lates on auto accounts and on one cap1 CC.  I do have a very high amount of lates on my CR, so I'm hopeful for some GW success but obviously I cannot rely on that.  

My spouse brings in an additional $60k annually but when we moved from one state to another in 2014, we lost our home (in his name only) to foreclosure when we couldn't keep up with two house payments simultaneously.  That house was listed for over a year but the housing market in my home state was dismal and we only had two showings the entire time.  That home resold after the bank took back posession in 2016 I believe but husband still hasn't gotten the finalization of foreclosure from banks or courts.  It does show up as a foreclosure on his CR.  That home loan was FHA so if we went that route this time, he would not be eligible yet.  As it stands, this prospective home loan would likely be in my name only and I would be a first time home buyer.  We have been in our current rental home since 12/2014.  

[Anonymous]

Bump

[CreditInspired]

---

@radfam wrote:

1. Mortgage Credit Scores:  
 - TU 632, EQ 616, EX 590

2. Credit Negatives: 

1 med collection 2013 for $200 (still unpaid, working on PIF/PFD) on all 3 CRs

1 med collection 2012 for $285 (paid, didn't know better at the time to ask for PFD, working on GW now)

15 adverse accounts total:  History of late payments on installment accounts (last 30day late was 6 mo ago on auto loan, now have everything on autopay), nearly all adverse accounts (11 in total) are closed federal student loan accounts that have since been consolidated.  Some of those SLs are reporting as "was a charge off" or "payment after charge off."

1 GM auto loan "Paid in Full/Was a Charge Off" (Bal reporting $0)

3. Gross Income.  $102,000  

4. Source of income.  Where is the income coming from? List each source.

• Full time Employment - 89k
• 10% annual bonus - 8900
• child support - 3600

5. Monthly debt payments. 

• Lease Vehicle Payment- $564 with 4 years left on note
• Student Loans: IBR $324/mo. Consolidated loan amount is approx. 110,000. 
• 2 credit cards ($300 CL - $0 bal; $1000 CL - $40 bal)

6. Employment (for those who are employed). 

• Type of employment: Full time employment for 2y10m at current company 
• How long have you been in the industry/career field: 5 years

7. Assets/Reserves. This is to determine how much you could potentially have as a down payment and also as reserves to help qualify (for example if your debt to income ratio is high this could help qualify you anyway).

• Savings- $18,000 
• Checking- $4500 

8. Location:  This is to determine govt guaranteed loan limits, what special programs might be available for you, how much property taxes & homeowners insurance will likely be, amongst other items.

 - Houston, TX

9. Property Description: 

• single family home (Self, Spouse, and 5 kids)

10. Property Value. 

• Purchase transaction: Price range <$300k

Additonal Info:

I am currently rebuilding my credit report to position myself better for a mortgage, hopefully around summer 2018.  As for rebuild, I recently opened a second CC within the last month to help with my revolving accounts.  Keeping one CC at $0 and the other at or below 8% balance, already both on autopay.  I am GWing my lates on auto accounts and on one cap1 CC.  I do have a very high amount of lates on my CR, so I'm hopeful for some GW success but obviously I cannot rely on that.  

My spouse brings in an additional $60k annually but when we moved from one state to another in 2014, we lost our home (in his name only) to foreclosure when we couldn't keep up with two house payments simultaneously.  That house was listed for over a year but the housing market in my home state was dismal and we only had two showings the entire time.  That home resold after the bank took back posession in 2016 I believe but husband still hasn't gotten the finalization of foreclosure from banks or courts.  It does show up as a foreclosure on his CR.  That home loan was FHA so if we went that route this time, he would not be eligible yet.  As it stands, this prospective home loan would likely be in my name only and I would be a first time home buyer.  We have been in our current rental home since 12/2014.  

---

IMHO, I think you already know the answer, which is dismal at this point-in-time. Even if you were able to get a mortgage, the interest would be outrageously high. So, I'm going to give you a few pointers that I hope you accept in the kind spirit they are given.

1.  Give yourself 2 years to work on everything to increase your scores.

2.  Definitely continue to diligently work on the GW letters.

3.  That's good you have everything on autopay because, as you know, just one 30-day late is catastrophic.

4.  With your income of $102K and savings of $18K, I say just pay the $200 medical collection today. There should be no need to have to work on that.

3. Is the child support court-ordered? I ask because I believe when it is court-ordered, it is counted as income vs. the other parent just saying that's what he/she would pay monthly. 

4. Since you are renting, ensure that those monthly payments are always on time too because the lender will be looking at that.

Good luck to you. With diligence and consistency, you will be a homeowner.

[CreditInspired]

1. Mortgage Credit Scores:  
 - TU 632, EQ 616, EX 590

[CreditInspired]

2. Credit Negatives: 

[CreditInspired]

1 med collection 2013 for $200 (still unpaid, working on PIF/PFD) on all 3 CRs

[CreditInspired]

1 med collection 2012 for $285 (paid, didn't know better at the time to ask for PFD, working on GW now)

[CreditInspired]

15 adverse accounts total:  History of late payments on installment accounts (last 30day late was 6 mo ago on auto loan, now have everything on autopay), nearly all adverse accounts (11 in total) are closed federal student loan accounts that have since been consolidated.  Some of those SLs are reporting as "was a charge off" or "payment after charge off."

[CreditInspired]

1 GM auto loan "Paid in Full/Was a Charge Off" (Bal reporting $0)

[CreditInspired]

3. Gross Income.  $102,000  

[CreditInspired]

4. Source of income.  Where is the income coming from? List each source.

[CreditInspired]

9. Property Description: 

• single family home (Self, Spouse, and 5 kids)

10. Property Value. 

• Purchase transaction: Price range <$300k

Additonal Info:

I am currently rebuilding my credit report to position myself better for a mortgage, hopefully around summer 2018.  As for rebuild, I recently opened a second CC within the last month to help with my revolving accounts.  Keeping one CC at $0 and the other at or below 8% balance, already both on autopay.  I am GWing my lates on auto accounts and on one cap1 CC.  I do have a very high amount of lates on my CR, so I'm hopeful for some GW success but obviously I cannot rely on that.  

My spouse brings in an additional $60k annually but when we moved from one state to another in 2014, we lost our home (in his name only) to foreclosure when we couldn't keep up with two house payments simultaneously.  That house was listed for over a year but the housing market in my home state was dismal and we only had two showings the entire time.  That home resold after the bank took back posession in 2016 I believe but husband still hasn't gotten the finalization of foreclosure from banks or courts.  It does show up as a foreclosure on his CR.  That home loan was FHA so if we went that route this time, he would not be eligible yet.  As it stands, this prospective home loan would likely be in my name only and I would be a first time home buyer.  We have been in our current rental home since 12/2014.  

[radfam]

Thank you. I do appreciate the feedback and recommendations! We certainly aren’t seeking a mortgage right now. I’m just trying to gauge what all I need to do, really.

As an aside, you made reference to maintaining stellar rent. That is the one thing that I have never, ever been late on. We are coming up on three years next month in our rental house with no late payments. It’s a hefty payment that unfortunately does not report to CBs.

[CreditInspired]

The stellar rent payments count hugely when a lender is looking at all monthly debt. And the point that it is a hefy amount works too because it will show that you can handle a large monthly mortgage payment. Kudos to you on that front.