Help!!!

[jaf4776]

Ok so I have an unusual situation. A house has become available to me (I have 1st right of refusal). It is owned by an estate and it has just gone into probate so not sure how much time I have. I have made some serious financial mistakes and have been trying to rebuild. At this time my fico scores are 586, 631 and 620. I have a student loan that was in collections (paid) that will fall off next month. I have an old credi card judgement from capital one from 2008. I also have a paid credit card collection account that should fall off in November. I make 67k a year, have an on time paid as agreed student loan for $28k and two brand new credit cards (300 and 500 c/l). What are my chances of getting a mortgage with 10% down? Any thoughts?

[HoldingOntoHope]

You are probably a 50/50 chance of approval. The FICO scores you pull from her for TU and EX are not the same as what the lender gets so it is difficult to say what your mid score may be. If the Capital One judgment is not already paid it will have to be prior to funding. And if the only credit lines you have are the 2 cards it is going to make it difficult.

In your situation I think that you should probably find a mortgage broker in your area who deals with difficult credit situations. Applying at a major bank that only looks at their requirements will probably result in a no. A broker will have multiple lenders and programs to match you up with.

[fot1]

How new are the CC's?   Your are probably going to have to go with a FHA loan and they like 3 postive tradelines atleast a year old and nothing negative in 2 years.. Putting %10 down should give ya some wiggle room on that though.

[jaf4776]

So In the last week with some hard work I have been able to raise my fico scores. I am now at Ex 601, Eq 630 and Trans 667.  Is my situation any better?  I am meeting with my bank tomorrow to discuss options.

[DallasLoanGuy]

if the ccs arent 12 months old.... they arent considered valid by the lender. we need at least 3.

sounds like a manual underwrite fha deal.... verify rent and some utilities, ect.

judgment must be paid

. you 'might' find a lender who will do the deal without it paid if you are on a payment plan

[jaf4776]

So after some work the past few weeks i have been able to raise my scores Experian Fico 615, Equifax fico 657 and Transunion Fico 675.  Hopefully I am in better shape!

[jadeite788]

---

@jaf4776 wrote:
Ok so I have an unusual situation. A house has become available to me (I have 1st right of refusal). It is owned by an estate and it has just gone into probate so not sure how much time I have. I have made some serious financial mistakes and have been trying to rebuild. At this time my fico scores are 586, 631 and 620. I have a student loan that was in collections (paid) that will fall off next month. I have an old credi card judgement from capital one from 2008. I also have a paid credit card collection account that should fall off in November. I make 67k a year, have an on time paid as agreed student loan for $28k and two brand new credit cards (300 and 500 c/l). What are my chances of getting a mortgage with 10% down? Any thoughts?

---

Any judgments is considered public records and they must be paid off before closing.  I would write a letter and see if you can get it vacated if paid off.  The credit score is going to be another issue but doeable.  Looks like midscore is 620.  I would look at getting a third credit card, keep 2 of the cards with zero balance and put 4-5% balance on the third credit card.  I have heard on the boards the magic number is 3.  Wish I done it myself, probably would have qualified for conventional.  You should see a boost of 10-20pts on your score.  It took me 3 months to boost my scores by reading the tips in the re-building credit forum.  I have seen some get the boost in one month.  Good Luck!!!