01-16-2009 01:34 AM - edited 01-16-2009 04:28 AM
01-16-2009 06:21 PM
Two thoughts until the mortgage experts come along -
Pretty please don't pay the collections just yet. I think the experts will say they don't need to be paid in order to obtain a mortgage. Plus if you just pay the collections, your husband likely won't gain any points. They need to be deleted to help your scores any. You might want to research PFD - or paying the collections after they agree (in writing) to delete the negative lines. Hit up the Rebuilding Your Credit board for the proper procedure
Then if you have federal student loans, you might want to look into rehabbing them. As I understand it, the process takes 9+ months so it's not like you could get it done before you buy but something to look into in the future since healthy credit is always helpful plus federal student loans like, never go away. There's a Student Loans board too for help with that.
01-16-2009 06:45 PM
my credit is extremely poor due to defaulted student loans so im out of the question but my husband is the person that would be easier. his fico score is 570 and one of the reasons why is because of identity theft. back in 1995 someone took a 15,000 credit on his name and we never looked into his credit until a few days ago to purchace a home as a first time home buyer, and the problem is that in 1995, he was only 14 years old so we are disputing that with all 3 credit bureaus now. besides that, in total collections, he owes 1700 and we are takin care of that in 2 weeks with our income tax. besides that, we want to purchase a home in the 60k region in illinois that needs a little fixer-upper since we can manage to do so, but a couple lenders we have been too said the fha requires a score of 580 and 3 tradeline requirements: my husband pays rent, has internet bill, and has pays for medical insurance (which they take out of his check every month) that he has paid for within well over 12 months. we want a 30 year fixed rate of 5 percent or lower and a loan of 60k and we are looking to pay under 700 monthly in mortgage (including the home insurance and taxes). he gets paid biweekly of 1000 pretax, which is about 2,000 monthly. please any advice and help would be much appreciated. we are going to clean up his credit but we also want to purchase a home and not having to wait over a year to do so just because its takin so long for his credit score to go up. Thanks so much!Message Edited by kcandjr416 on 01-16-2009 01:39 AMMessage Edited by kcandjr416 on 01-16-2009 02:08 AMMessage Edited by kcandjr416 on 01-16-2009 02:11 AMMessage Edited by kcandjr416 on 01-16-2009 02:31 AMMessage Edited by kcandjr416 on 01-16-2009 04:28 AM
First, you need to know all 3 of his Fico scores. Then they will use his middle score. Is the 570 his middle score?
Most lenders will not do loans under a 580 score.
Go to a lender and ask them to show you exactly what you need to do to get a loan.
Do not pay off old collections unless your lender tells you to. It may make his score drop even more.
Check out the USDA and FHA loans. I think those would be your best option.
SAVE the tax returns until you find out what you have to pay off to qualify.
Keep checking the status of your disputes to see if his scores go up.
Might need to get a credit card (secured if you have to) with 200-300 of the tax returns. This will give him another trade line. Make sure it is paid off each month, and NEVER late.
That's the best advice I have for you.
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