So first of all I would like to say thank you to everyone on this forum! My husband and I have raised our scores more than I could have imagined because of all of you. Mine is still needing some work but I raised my husbands score from 586 to 721 in almost 5 months (experian). I still can't believe it.
Our original plan was to get a mortgage with his scores because I have a couple of portfolio recovery collections (charged off cc's) and they don't want to help me at all, so that is affecting my score a great deal. We went to go apply for a usda loan and the mortgage lender said if we were going to use both of our incomes we have to both apply. My heart sank sitting in his office. I just knew there was no way. Turns out my middle score is 635 which is only 5 points away from being ok. Despite that everything else turned out good.. income, savings, rental history, etc. so he told us we could go ahead and apply and we should be ok if we did manual underwriting. Even though he told us this I am still nervous about not being at the 640 mark. Do you think this is a big deal? I am trying not to get my hopes up in case something happens, but it is hard. I want a house so bad.
On another note we have started looking at houses since we are pre-approved. The first house we found was perfect... great neighborhood, newly built house, we both fell in love when we saw it, but someone placed an offer before we could and it was accepted. Bummer. Then we found another house, but mortgage lender and realtor are saying it isn't available for a usda loan because it is in city limits, but according to the map on the usda website it is eligible. Apparently they haven't updated their map in a while and this house is in a new neighborhood. Then we found another house which may or may not be eligible (same issue with the map) but it is a foreclosure and I am not sure I want to wait months and months to find out we may not get it (it is way underpriced). It has been an emotional weekend but I know everything happens for a reason and there is a perfect house just waiting for us. So everyone please cross your fingers everything goes ok!!
Starting Score: 567
I have tried multiple time with portfolio recovery and they haven't budged yet, but I will keep trying. And reading everyone else's bad experiences with them doesn't help either haha. My debt with them is $2000 total including their fees. All of the other collections we had were so easy to get removed. Do you have a personal experience with portfolio recovery or heard success stories with them?
We only have one credit card and it is barely used and paid off in full every month. I don't know what else I can do to get 5 points.
rootpooty - The $2000 is what is reporting on my report. On my cc we just use for gas. $100 approximately every month. Just enough to show some activity.
The portfolio recovery collections are a little over 2 years old.
rootpooty - My limit is $500. I got it when my credit score was in the 580's and got stuck with a secured card. I was denied for a regular one.
My loan officer told me to hold off on paying it right now. If during the underwriting they tell me I need to pay it I will. I have the money to do so, but he said the debt shouldn't be a problem since I applied for a usda loan. He said if I applied for a fha I would definately have to pay it off.
rckstrscott - That is awesome they removed it with a settlement! I don't remember the exact words I used in my letter. I have them filed away. I didn't say anything along those lines though.