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Member
RR5
Posts: 26
Registered: ‎12-20-2011
0

Do We Qualify for a Mortgage? HELP

1. Credit. Mine are  all 700+, Dh 630, 615 and third score unknown. He has one unpaid collection for 1600 that we will pay at closing if needed, it's from 2008, has three Charge-off that are paid. Also one charge off with the amount of 4500 that is unpaid, and we tried to pay it off but they are not willing to settle, and sended us a 1099 to file with taxes last year so i'm not sure if we have to pay this? ( Everythign bad was from 2008/2009)
 
2. Income. $48,000
 
3. Source of income/ Employment:. . i'm a w-2 and D is 1099/Self employed, both at our jobs for two years.
4. Assets/Reserves.   Around 20K (been saving for two year)
5.Location.  WA state, Taxes are around $2500/year
6. Property. Single Family Home
7. Value. Not exactly sure, i'm hoping around $185-200K

8. Occupancy. Primary residence,

9. Transaction Type. First time home buyer. wanting to go either  FHA or USDA.
 
I was wondering if we would be able to qualify around summer time, and if it's even possible? We are willing to pay those two unpaid account if needed but i don't want to waste our time if we will just get denied. If anyone has any advice or reccomendations on what we should do before applying, we would really appreciate it.
Thanks!
Established Member
Barris
Posts: 113
Registered: ‎12-04-2012
0

Re: Do We Qualify for a Mortgage? HELP

The charge offs look pretty old, 4+ years and all but if you guys apply jointly, the mortgage might get approved but the rate is subsequently not going to be very favorable.

Valued Contributor
JM-AM
Posts: 3,302
Registered: ‎06-09-2010
0

Re: Do We Qualify for a Mortgage? HELP

Husbands scores are low. That charge off is hurting his DTI.

You may get enough of a boost by paying it off. I understand you want more reassurance, but with your circumstances presently unless they improve your chances rent the greatest.

Now you can look into the NACA program it is probably what you need. In my opinion this is what you should do if you want to get the process started.
Good Luck
May all your dreams and wishes become a reality!
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Do We Qualify for a Mortgage? HELP

If your total household income is $48K, you will both need to be on the loan to qualify for the home you want.

Does your husband have any credit cards? Do you currently have any credit cards that you can add him as an AU on? When are you looking to apply?

It is getting harder and harder to find a lender that will approve a 620. I encourage you to work on his scores for a little bit before applying as most lenders require a mid fico of 640. Have you tried to PFD any of his CO's or collections?
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Member
RR5
Posts: 26
Registered: ‎12-20-2011
0

Re: Do We Qualify for a Mortgage? HELP

Yes we both want to be on the loan. I have 3 CC's with 0  balances, and he is an authorized user on one and i just added him to my second cc with 5k limit, so maybe that will give him a boost?  He doesn't have any cc of his own, but we were wanting to apply around june so i don't really want a hard pull on his report since it will lower his score even more.

So do you guys reccoment contacting the BOA Charge off with 4500 balance and trying to pay it in full, since they will not accept a settlement ( we have a 1099 form for the whole balance) ? I'm not sure if the charge off is really hurting his utilization since it says charge off 4500 and past due 850.

 

We tried to PFD both the collection and the CO but the charge off is BOA and Collection is Midland, and neither of them will budge. I'm just not sure what we should do to improve our chances.

 

 

Valued Contributor
JM-AM
Posts: 3,302
Registered: ‎06-09-2010
0

Re: Do We Qualify for a Mortgage? HELP

If he has no CC's now he will actually gain points once the CC starts reporting.

1 small ding for INQ and then a boost for adding revolving debt to his mix.
Good Luck
May all your dreams and wishes become a reality!
Member
RR5
Posts: 26
Registered: ‎12-20-2011
0

Re: Do We Qualify for a Mortgage? HELP

So DH has two current cc accounts reporting as AU, is that not enough? Would we have a better shot if we paid the CO and the collection off in full?

Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Do We Qualify for a Mortgage? HELP

You will have to see what it does to his scores. Are you subscribed to Score Watch? It will give you an update when the new AU accounts post to his credit report.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
New Contributor
BCullum
Posts: 157
Registered: ‎01-09-2013
0

Re: Do We Qualify for a Mortgage? HELP

Kudos for saving up 20k over two years with on 48k income. Id do what movingforward says, subscribe to score watch and wait and see what happens to his scores. Ideally you want a 640 mid score. Some lenders are still taking 620 but they are few and far between.

Lender Pull EQ 745 EX 734 TU 722
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Do We Qualify for a Mortgage? HELP

+1
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014

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