Do we have a chance?

[Anonymous]

Hi everyone,

                I've been reading and learning from these forums for a few months now, although I've never posted.

We are thinking about applying for a mortgage loan in spring of 2013. Currently my husbands scores are: TU-637  EQ-564  EX-?

I do not plan on being on the loan since I don't have any income being a stay at home mom but I do understand that since we live in a com property state my credit report will need to be pulled. Anyway here's the question, the only baddies my husband has is some very old medical debts that I'm not worried about since most will fall off his credit report by then and one CO account with OC from 2007.  It's from a voluntary surrender and has not been updated by creditor since 2008, no payment made since 2007 and I really don't plan on paying this off because the amount is just too high. This CO is also on my credit report because I cosigned for the loan. Do we have any chance of getting approved for a mortgage with this CO on our credit reports? Either going to try FHA or USDA.

                                                                                           Thanks.

[tooleman694]

Very good chance if you are rebuilding your credit and keeping your CC balances low.

[Anonymous]

---

@tooleman694 wrote:

Very good chance if you are rebuilding your credit and keeping your CC balances low.

---

                      Thanks for the reply tooleman.

                               Yes most certainly plan to keep rebuilding and keeping the CC balance at or below 10%. Just really worried that this old CO will need to be paid before we can actually close. Wish I would have been smarter with my credit in the past and then I would'nt have to drive myself crazy with this.

[JM-AM]

When you are ready to apply (or begin looking) bring an updated copy of your credit report to the LO and or Broker. Sit down and talk to them. Explain everything and show them your credit report to see what they think needs to be done. 

You can probably go talk to an LO or Broker now and be honest that you aren't quite ready but wanted their professional opinion on what you need to do to qualify.

[JP1968]

I thought I was months (or more ) away from getting a mortgage.  My scores when looking at free sites just weren't going up.  I started "talking" to a credit repair company who told me to go ahead and have a mortgage company pull my reports.  As you can see in my signature, I got much better than I thought it would be.   That bank wanted a mid score of 660 but my builder had another bank that only required a mid score of 620 for FHA loan.  We have now begun the process.

Initial lender said that all balances would need to reflect $0.  She actually told me to settle the accounts for whatever they would take.  She also told me that medical does matter.  This lender said he doesn't think I need to pay them off, but is checking with underwriter to be sure.  He said medical doesn't matter as much.   He also mentioned the community property issue (my husband is disabled and has no income) since we do file taxes together.  He told me that as long as there are no "open" accounts that he is required to be paying on (truck, credit cards, etc)  it won't matter what is in collections...they are only looking at it for figuring my debt to income ratio....in other wordsthey would have to figure in his truck payment in my debt ratio.

Hope that helps!

Jodi