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How long after new credit cards to get approved for FHA mortgage

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Anonymous
Not applicable

How long after new credit cards to get approved for FHA mortgage

I have been working on my credit since about november of 2016 and it has been a bumpy ride. I started a couple years ago with all three scores sub500, with recent late payments, and no revolving credit accounts. I initially finally got a secured discover card last fall, then a second credit card(unsecured) Capital one card with a 5oo$ SL in December. I was seeing gradual score increases over severlal months, then when I went for my third card AMEX blue cash 2,000SL and was instantly approved. Within just a couple days of getting approved for the AMEX, I heard about the pairing of Chase saphire  preferred, and freedon unlimited  card benefits. I figured, I travel enough for work, why wouldnt I get these two cards too. I was instantly approved for both with SL of 5K and 4.5K, SO basically I have a bunch of inquiries now with some new accounts. My goal is a mortgage approval within 12 months. Below is some info about my credit profile. Only showing the Mortgage scores, because that is my ultimate goal.

EQ FICO5    578 ( I cant figure out why this one is so much lower)

1 collection for 1200 from 5 yrs ago from an Idaho Power utility

multiple late payments, last late payment 13 months ago

3 HArd  Inquiries

TU FICO4    657

Multiple late payments , last late 13 mnths ago

No collections or derog

 

EX FICO2   645

1 collection for 1200 from 5 yrs ago from a utility

Multiple late payments last time 13 months

 

I have 5 CCs, all paid on time everytime, but all are new. 12,300 sl total

1 car loan no lates since 13 months

4 student loans with late payments, last time 16 months

W-2 full time employed average 100K annual income.

5K in savings

34K in retirement fund

 

Is there any chance I can bounce back form these new accounts, and finaly close on our first home? Can someone tell me what to do? I have already spent significant time begging and pleading old collection agencis and had some good luck with removals.  I would be looking at an FHA loan. ANy and all tips are genuinely appreciated. I feel like I have done everything in my control outside of just aging accounts. Thanks in advance!

Message 1 of 9
8 REPLIES 8
trusty
Frequent Contributor

Re: How long after new credit cards to get approved for FHA mortgage

Typically, you need a requisite 3 active tradelines, with at least 24 months of history.

 

Best thing to do is talk to your prospective loan officer... because there tend to be exceptions to every rule, depending on who is doing your loan.

Message 2 of 9
CreditInspired
Community Leader
Super Contributor

Re: How long after new credit cards to get approved for FHA mortgage

IMHO, I think any lender will require that $1,200 utility bill to be satisfied, because if you get a mortgage, the utility company could attach a lien on the home. Plus, getting this satisfied could possibly give you scores a bump.

 

Also, unequivocally, do not apply for anymore credit, anywhere. Lenders definitely don't want to see this.

 

You stated what your SLs were but not your outstanding balances. What does your utilization look like across the board and on individual cards? If you practice AZEO, you'll be okay.

 

GL2U


|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macys $24.2K || NFCU CLOC $15K || NFCU Platinum $15K || CitiCostco $12.7K || Chase FU $12.7K || Apple Card $7K || BOA CashRewards $6K
Message 3 of 9
Anonymous
Not applicable

Re: How long after new credit cards to get approved for FHA mortgage

Oh oops. I have a zero $ balance with all of them except one which will be reporting around 8%. Also I failed to mention, I paid that utility collection over a year ago. It shows paid on my cr. I have no unpaid collections. Thank you for the replies, keep them coming!
Message 4 of 9
NC_Mtg_Loaner
Valued Contributor

Re: How long after new credit cards to get approved for FHA mortgage

Yeah, i recommend satisfying that utility company collection, stop opening new credit, stop paying anything later than 30 days and keep your revolving account utilization ratios below 50% (30% OR 10% preferred) and you'll be fine. 

 

 

__________________________________________________

Licensed NC Mortgage Loan Originator
Message 5 of 9
Anonymous
Not applicable

Re: How long after new credit cards to get approved for FHA mortgage

Ok you guys. I appreciate you but Jesus , I have no unsatisfied collections like I have stated. Utility was satisfied like a year go. My post is more of a what now thing. I feel like I've done everything in my power and just want to confirm. Anything new?
Message 6 of 9
Anonymous
Not applicable

Re: How long after new credit cards to get approved for FHA mortgage

I agree with you. Just let your accounts age. Don’t apply for new credit. Use what you have responsibly and try to remove your 30 lates if you can. Look clean and innocent before apping for mortgage. I’d wait as much as I can. You said your goal is 12 mo. So just wait and pif your accounts for a year then apply
Message 7 of 9
Anonymous
Not applicable

Re: How long after new credit cards to get approved for FHA mortgage

Begin a banking relationship with a financial entity that offers mortgages.

Message 8 of 9
Anonymous
Not applicable

Re: How long after new credit cards to get approved for FHA mortgage

Thank you! That's a great idea. My wife and I are going to start banking at Idaho central CU ASAP.
Message 9 of 9
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