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The last home I owned was in 2007, sold in the recession, filed BK in 2012, went through a divorce, did the single mom thing, and now remarried.
We have 4 kids, and live in a 3 bedroom house, with a 14, 12, 11, and 5 year old .... Well it's crowded!
We are desperate to buy a home, our income isn't the issue, it's our credit! Our lease is up in September, I have been able to increase my score the last couple months, I need a minimum of 620 middle score to qualify for FHA. A mortgage company told me that at minimum we had to wait until December because that will be a year from our last delinquency. With where my scores are now, I am hoping by some miracle over the next couple months we can qualify.
We are so close I can taste it! Am I just super hopeful, is this even possible? I know building credit takes patience, but I would really love for us to have a home we own!
Any advice would be appreciated.
i dont know your situation, but remember that 620 is the very minimum, not the number at which you will be assured a loan. i say this because i was so excited when we both hit 620 only to find out we needed plenty of reserves and would have a not so wonderful rate. if you have plenty in the bank for your down, closing and reserves i would give yourselves a good 6 months to be ready to purchase. If you dont have those $$, focus on getting it while getting your credit in top shape.
Have you looked into the NACA program? For some it is a long road, but if you have good rental history and some $$ in the bank it may be a quicker route.
@Anonymous wrote:i dont know your situation, but remember that 620 is the very minimum, not the number at which you will be assured a loan. i say this because i was so excited when we both hit 620 only to find out we needed plenty of reserves and would have a not so wonderful rate. if you have plenty in the bank for your down, closing and reserves i would give yourselves a good 6 months to be ready to purchase. If you dont have those $$, focus on getting it while getting your credit in top shape.
Thank you so much, those are the kind of things I wonder about!
Total CL: $321.7k | UTL: 2% | AAoA: 7.0yrs | Baddies: 0 | Other: Lease, Loan, *No Mortgage, All Inq's from Jun '20 Car Shopping |
@Anonymous wrote:Have you looked into the NACA program? For some it is a long road, but if you have good rental history and some $$ in the bank it may be a quicker route.
I haven't, I will look into it!
@RM21 wrote:
With the scores being on the edge, I'd say if a situation presents otself that you know you can handle, go for it. But at the same time don't just do it because you feel you have to, and then end up in a less dasireable situation.
Good advice, I can be a bit impatient at times, I wish I would have started this last year! And wish I stumbled upon this site last year!
I'd look into other lenders. 620 minimum with a year of no delinquencies is a lender overlay not an FHA guideline. Best of luck!
@Anonymous wrote:The last home I owned was in 2007, sold in the recession, filed BK in 2012, went through a divorce, did the single mom thing, and now remarried.
We have 4 kids, and live in a 3 bedroom house, with a 14, 12, 11, and 5 year old .... Well it's crowded!
We are desperate to buy a home, our income isn't the issue, it's our credit! Our lease is up in September, I have been able to increase my score the last couple months, I need a minimum of 620 middle score to qualify for FHA. A mortgage company told me that at minimum we had to wait until December because that will be a year from our last delinquency. With where my scores are now, I am hoping by some miracle over the next couple months we can qualify.
We are so close I can taste it! Am I just super hopeful, is this even possible? I know building credit takes patience, but I would really love for us to have a home we own!
Any advice would be appreciated.
I'm happy that you are moving on with your life after those financial hits.
The minimum score [lower of the two people's middle score] for an FHA mortgage cn be around 580 with manual underwriting. The 620 is a lender requirement, not an FHA requirement. The lower your score, the more positive mitigating factors you will need to gain an underwriter's approval.
Positive payment records sine the bankruptcy discharge date is your friend. The more the better. At leat 12 months and more of positive payments looks good to the underwriter.
Ensure that you have a decent base of tradelines [3 to 5] on which to rebuild your credit profile ... which in turn produces improving scores.