Getting Approval Odds

[Anonymous]

Hello,

I have been working intensively on improving my credit scores over the last year. My scores meet the minimum, my CC utilization is about 25%, and we have a high income. I am worried about the miss payments and CO affecting my ability to get a home loan. What are peoples thoughts on our situation.

1. Mortgage Credit Scores:  

• My Scores: 609, 631, 638 MyFico Morgage scores
• My Wife's Scores are in the 650-680 range

2. Credit Negatives: If you have any, what negatives are on your credit reports. For each negative, please provide:

• I had a group of missed payments about 12 months ago, and an occassional missed payment over the course of last 9 years
• Credit Card Charge off Paid in Full, Deliquency started November 2015 paid in full April 2016- Biggest concern
• Electric company collection 2010

3. Gross Income. 

• 80K for me, 120K for my wife. My wife works in healthcare as a Nurse Practicanier.

5. Monthly debt payments. 

• Auto Loans; about 1000
• Credit cards 500
• Student Loan payments around 3000

6. Employment (for those who are employed). 

• I have been with my company about 1 year, and previous employer for 5 years. similar feilds
• wife just graduated was a nurse for 5 years will be new few months in her 120k position.

7. Assets/Reserves. This is to determine how much you could potentially have as a down payment and also as reserves to help qualify (for example if your debt to income ratio is high this could help qualify you anyway).

* 401k around 25K

8. Location:  This is to determine govt guaranteed loan limits, what special programs might be available for you, how much property taxes & homeowners insurance will likely be, amongst other items.

• MN
• Rice County
• 55021

9. Property Description: 

• Single family hobby farm
• 390k asking price
• 44 acres land
• multiple outbuildings: barn, pole shed, etc

10. Property Value. 

• 390K

11. Occupancy. 

• Primary residence
• , Me, my wife, and her son.

[Anonymous]

Hello,

[Anonymous]

I have been working intensively on improving my credit scores over the last year. My scores meet the minimum, my CC utilization is about 25%, and we have a high income. I am worried about the miss payments and CO affecting my ability to get a home loan. What are peoples thoughts on our situation.

[Anonymous]

1. Mortgage Credit Scores:  

• My Scores: 609, 631, 638 MyFico Morgage scores
• My Wife's Scores are in the 650-680 range

2. Credit Negatives: If you have any, what negatives are on your credit reports. For each negative, please provide:

• I had a group of missed payments about 12 months ago, and an occassional missed payment over the course of last 9 years
• Credit Card Charge off Paid in Full, Deliquency started November 2015 paid in full April 2016- Biggest concern
• Electric company collection 2010

3. Gross Income. 

[Anonymous]

• 80K for me, 120K for my wife. My wife works in healthcare as a Nurse Practicanier.

5. Monthly debt payments. 

• Auto Loans; about 1000
• Credit cards 500
• Student Loan payments around 3000

6. Employment (for those who are employed). 

• I have been with my company about 1 year, and previous employer for 5 years. similar feilds
• wife just graduated was a nurse for 5 years will be new few months in her 120k position.

7. Assets/Reserves. This is to determine how much you could potentially have as a down payment and also as reserves to help qualify (for example if your debt to income ratio is high this could help qualify you anyway).

[Anonymous]

* 401k around 25K

[Anonymous]

8. Location:  This is to determine govt guaranteed loan limits, what special programs might be available for you, how much property taxes & homeowners insurance will likely be, amongst other items.

• MN
• Rice County
• 55021

9. Property Description: 

• Single family hobby farm
• 390k asking price
• 44 acres land
• multiple outbuildings: barn, pole shed, etc

10. Property Value. 

• 390K

11. Occupancy. 

[Anonymous]

• Primary residence
• , Me, my wife, and her son.

[VALoanMaster]

Hi ddulek06,

The FHA county loan limit for Rice is $271,000 so your only option is going to be a conventional loan with 5% down unless you have VA entitlement.

The problem with a conventional loan is the rate & PMI will be higher due to your middle credit score of 631 so what you really need to do is find a lender (like me) that will work with you to get your scores up as soon as possible.

[VALoanMaster]

Hi Ddulek06,

The FHA county loan limit is $271,000 in Rice so a conventional loan is about your only option.

The problem with a conventional is the rate & PMI will be a lot higher due to your 631 mid credit score so your best bet is to find a lender that will work with you to improve your scores as soon as possible. Having higher scores will not only improve your rate but also your odds of getting approved.

Good luck.