First Time Home Buyer Repairing Credit

[Anonymous]

This is my first post since I joined MyFico. I am an BIM Designer employed full time and I make 55,000 a year and have been at the same company for 4 years. I have been trying to repair my credit for a year now. I started at 599 and my current score is now 637. I recently paid my last deliquent account of $480. This account has been hurting me most because though it was from 2009 they did not report it untill the end of 2012. I make all of my current card payments on time and have a car loan for $400 a month. My oldest account is 4yrs old and my average account is 2yrs old. I have a total of $3,000 in credit and $2,000 in an IRA. I would like to use my income tax and savings to buy a house this year if possible. I have about $7,000 to put down for an FHA loan. Does anyone think this is possible, or have any advice they can offer? Thanks for reading any advice is appreciated.

[daddyaddy]

I think it's possible!

Don't apply for any new credit or do anything that will require a hard pull on your credit reports until AFTER your home purchase.

When you say "delinquent account" do you mean late payment? You should write a goodwill letter to the creditor to see if they will remove it from the CRA's. 

[JM-AM]

Depending on how that last collection is reviewed you may have to wait 12 months from that date.

Other than that you should be okay according to whats posted.

Take a copy of your credit report and speak to a LO or Broker. They will let you know if you have to wait or can apply now.

[MovingForward_2012]

Ah! Yes! That is a good point JM-AM said. Lenders typically require that there are no new collections and no new lates for 12 months before applying.

In order to see a boost in credit score, you need to get the collections you paid removed (by sending a goodwill letter) off your credit report, especially the most recent one reporting initially in 2012. When was it added to your credit reports in 2012. If it was early last year, you will hit or have hit the required 12 month waiting period, and you could be approved with the collection on there if you meet the min requirements.

Is your 637 a fico score from this site? Most lenders require at least a 640 mid fico. Some will approve a 620 if you have no collections or lates. So you are almost there and I also think buying a house this year is a possibility. I wouldn't obtain any new credit as you said you already have $3000 in credit. What is the total balance on all your credit cards?