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rena347
Posts: 57
Registered: ‎02-22-2012
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Re: Denied on FHA today...when to re-apply again?

[ Edited ]

I am confused about this one year - no late rule that people are quoting about FHA. We just recently closed on an FHA loan and my husband had a 30 day late (on an auto loan) from August 2011. We were asked to write a letter of explanation for the late and it passed through underwriting.

Established Contributor
thankfulheart
Posts: 619
Registered: ‎09-26-2011
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Re: Denied on FHA today...when to re-apply again?


rena347 wrote:

I am confused about this one year - no late rule that people are quoting about FHA. We just recently closed on an FHA loan and my husband had a 30 day late (on an auto loan) from August 2011. We were asked to write a letter of explanation for the late and it passed through underwriting.



My understanding is a single 30 day late MAY be permissable, but any more than that, and certainly 60 day lates must pass the 12 month mark.  One reason I'm waiting until June to apply, I have a 30 day late from May 2011 and was advised by the LO to wait until then.

Starting Score: 10/1/2011 EQ 568 TU 593
Current Score: EQ 664 TU 700 EX 701 (FAKO)

Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012
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Re: Denied on FHA today...when to re-apply again?

Good morning, and thank you all for your insight and responses! I appreciate it.  We are not seeking out conventional because we don't want to put 20% down.  The house we were looking at is right at $300K, so we don't want to come up with $60K.....

 

If I understand the responses correctly, ideally I shouldn't even reapply until January of next year just to assure the clean bill of health in regards to any lates? I would hate to keep my payment history clean, then reapply in December, just to get the big "DENIED" stamp once again because it wasn't a full year.

 

I am so ticked because we were offered bad advice, and were told to "create a hardship" so we could qualify for a mortgage modification on our existing house.  That advice more or less created the scenario of getting denied....so frustrating. 

 

I, by any means do not have stellar payment history, but the stuff I was late on, is/was paid in full for the full balance amount and I didn't settle with anyone.  I thought by doing that, that it would help my cause, but it appears as if that didn't matter.

 

Oh well, I've learned my lesson, and will carry on into the future instead of beating myself up for past mistakes.  Every month going forward with clean history, is indeed moving one month further from the tarnished past...Just looks like we will be putting our "Forever Home" on hold for another year...

 

 


Starting Score:5/22/10 590
Current Score: 6/11/13 670
Lender Mid Score: 6/11/13 670

Goal Score: 700


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Established Contributor
thankfulheart
Posts: 619
Registered: ‎09-26-2011
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Re: Denied on FHA today...when to re-apply again?


ccubedzx3 wrote:

Good morning, and thank you all for your insight and responses! I appreciate it.  We are not seeking out conventional because we don't want to put 20% down.  The house we were looking at is right at $300K, so we don't want to come up with $60K.....

 

If I understand the responses correctly, ideally I shouldn't even reapply until January of next year just to assure the clean bill of health in regards to any lates? I would hate to keep my payment history clean, then reapply in December, just to get the big "DENIED" stamp once again because it wasn't a full year.

 

I am so ticked because we were offered bad advice, and were told to "create a hardship" so we could qualify for a mortgage modification on our existing house.  That advice more or less created the scenario of getting denied....so frustrating. 

 

I, by any means do not have stellar payment history, but the stuff I was late on, is/was paid in full for the full balance amount and I didn't settle with anyone.  I thought by doing that, that it would help my cause, but it appears as if that didn't matter.

 

Oh well, I've learned my lesson, and will carry on into the future instead of beating myself up for past mistakes.  Every month going forward with clean history, is indeed moving one month further from the tarnished past...Just looks like we will be putting our "Forever Home" on hold for another year...

 

 


I wish I had known a year ago that I really needed a full year to prepare to apply for a mortgage.  No one really tells you that, do they?  It's taken me several months to get my financial house in order from dealing with medical collections to getting student loans consolidated and reporting correctly, not to mention letting time pass on the most recent lates.

 

I would strongly recommend using the time to read over the rebuilding forums and work to clear up as much as you possible can.  You never know what a GW letter might do for you.
 And...OPT OUT if you haven't already.  There's a website and a phone number (I'm sure you can search the forum to find it) which will keep creepy crawlies from showing up now that you've applied for a mortgage. Keep moving forward!

Starting Score: 10/1/2011 EQ 568 TU 593
Current Score: EQ 664 TU 700 EX 701 (FAKO)

Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012
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Re: Denied on FHA today...when to re-apply again?

Spoke with our lender again yesterday, and she re-ran the numbers just based on my wife.  Since we were looking at new construction, we wouldn't close until December, just about the time the late's in her name fell off.  We were then pre-approved for $243K based on her income alone, but we are going to hang tight and re-apply when we both can be used towards our "Forever Home." 

 

I plan on writing a few GW letters this coming weekend, and then from there I am going to just wait it out until February of '13 when we will have more saved up, and we will be in a better spot to buy.

 

A word for the wise, never ever take advice over the phone in terms of short-selling.  A year and a half ago I talked to someone in regards to short-selling.  He recommended that I go at least 30 days late on our mortgage and create a hardship by being late on a card or two.   I followed his advice, but declined following through on shirt-selling as my conscience wouldn't allow me to do it....The big problem is, that advice cost us a chance at moving this year and now I have to deal and live with it.

 

All I can say is, thank you to everyone here for advice on how to best correct my situation moving forward.  Hearing real advice, from real people is the best way to move forward. THANKS!


Starting Score:5/22/10 590
Current Score: 6/11/13 670
Lender Mid Score: 6/11/13 670

Goal Score: 700


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Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012
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Re: Denied on FHA today...when to re-apply again?

*Update*  I finally got a chance to pen up some Goodwill letters, now I have to play the waiting game to see what happens.  I want to prepare for the worst, and hope for the best. 

 

- Currently I am at 78% utilization on my one and only C.C. with a $2700 limit.  If I pay that down within the next day or two to 1-9%, how much would you expect my score to go up?

 

- I have a 60 day late from September 2005 showing up on my C.R.   When that falls off, will my score increase at all?

 

- Once December hits, it will be 1 year since my last late payment on a credit/loan account, will 1 year with good history increase my score?

 

- Once February hits, it will be 2 years since any late mortgage payments, will 2 years of good mortgage history increase my score?

 

I have about 60 points I need to gain in order to hit a median score of 640...will I get there by December/January?

 

Thank you again all for all your help!

 


Starting Score:5/22/10 590
Current Score: 6/11/13 670
Lender Mid Score: 6/11/13 670

Goal Score: 700


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Frequent Contributor
UpmyscoreinFL
Posts: 293
Registered: ‎01-12-2012
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Re: Denied on FHA today...when to re-apply again?

Paying down your utilization will get your score up the fastest. So is it tru first guaranty only requires six months clean history? I have one card holding me up and I would have six months by the time I need to buy bit not 12.
Equifax my fico 629
Transunion my fico 669
Experian fako 663
Contributor
GoingTo800
Posts: 91
Registered: ‎01-24-2012
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Re: Denied on FHA today...when to re-apply again?

The late from 05 most likely won't change your score.I had a 4 year late goodwilled off and got like 4 points
Equifax Feb 2012 690
TU Feb 2012 720
Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012
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Re: Denied on FHA today...when to re-apply again?

I just re-applied today, and BOOYAH!!!.......PREAPPROVED!!!! I'm so ecstatic right now!! We plan on doing a new build, so we have time to save some more cash before closing....I went from a 590 FICO on April 30th of this year, to a 640 today!! Trust in yourself, and good WILL happen!!!

Starting Score:5/22/10 590
Current Score: 6/11/13 670
Lender Mid Score: 6/11/13 670

Goal Score: 700


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Regular Contributor
indecison
Posts: 226
Registered: ‎05-24-2012
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Re: Denied on FHA today...when to re-apply again?

Congrats!


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