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Regular Contributor
jwpezd
Posts: 219
Registered: ‎04-06-2012
0

How long will it take me to qualify for an FHA loan

hello

 

i am interested in buying a home in the next year and need advice as to whether i can qualify in that  amount of time.

 

My current scores from here are TU 608, Equ 621, and Ex 606.  I know these scores will not qualify me right this second.  i have two credit cards with 500 dollar limits that i pay in full every month.   a car loan that has never been late.  the problem is i have just came out of stupid credit decisions and am cleaning it all up i ahve 120 day lates on student loans from 8 months ago that i have brought current.  I had two collections that i have paid and arent currently showing on my report.  i had a charge off on a capital one that i paid one year ago as well as a charge off on a  macy card from two years ago that i have paid.  my recent deliquency is a 90 day late on a citi card in febuary that i am working on removing. 

 

my current income is at 55k a year salary same job same position for 4 years.  i am looking to buy a house in the 175-200k range i have around 25k saved in bank. 

 

thank you for any help or advice

 

Chase Freedom-(1000) BOA 123-(2000) Home Depot-(4000)
Discover IT-(1000) Lowes GE-(1500) Orchard Bank-(300)
Regions Student Visa-(500) Best Buy Reward Zone-(500)
In the garden till 4/01/2015
Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011
0

Re: How long will it take me to qualify for an FHA loan

You will need to have 12 months of "clean credit" to qualify for an FHA loan (And I think USDA but not 100% sure on that).  So take the time between now and next Feb to get to work on removing the derogs on your reports, and making sure that you don't bounce checks or acquire any more negatives on your credit reports.  Immediately "OPT OUT" to prevent the CRA's from selling your information to dirty collection agencies, as you never know what might still be out there.  Even though you PIF your cc every  month, a balance could be reporting which could be dinging your credit - the balance that reports to the CRA's each month is usually what is reported on the Statement, so you need to know the statement date to get the best bank for your FICO score.  

 

what POSITIVE tradelines do you have that are reporting, in addition to the 500 cc?  It might be a good thing to get another secured cc if you only have the one.  (Or unsecured if you qualify).

 

Head over to the Rebuilding Your Credit section and read 500 posts so you can get the basic understandings of how to clean up your credt, then ask particular questions for your situation if you get stuck. 

 

Good Luck!

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Regular Contributor
jwpezd
Posts: 219
Registered: ‎04-06-2012
0

Re: How long will it take me to qualify for an FHA loan

Thank you for the reply!

 

I have two unsecured  credit cards that are positive trade lines. a car loan that has never been lade and four student loans that are all no current.  I dont plan on applying at all until next march.  we have moved in with my in laws for the year and are saving saving saving.  I just dont want to take this year of TORTURE of living with my in laws for nothing.  Thats why i was wondering if it is possible in my situation to get a home loan in the next year.  My car payment is 289 my cc payments are 25, student loans total about 185.  my total debt with student loans the car and credit cards is 19k.  the home i would like to get my family is in the 175k to 200k.  im hoping within a year i can make this happen.  Like i stated before i have around 25k in savings.

Chase Freedom-(1000) BOA 123-(2000) Home Depot-(4000)
Discover IT-(1000) Lowes GE-(1500) Orchard Bank-(300)
Regions Student Visa-(500) Best Buy Reward Zone-(500)
In the garden till 4/01/2015
Valued Contributor
JM-AM
Posts: 3,302
Registered: ‎06-09-2010
0

Re: How long will it take me to qualify for an FHA loan


jwpezd wrote:

Thank you for the reply!

 

I have two unsecured  credit cards that are positive trade lines. a car loan that has never been lade and four student loans that are all no current.  I dont plan on applying at all until next march.  we have moved in with my in laws for the year and are saving saving saving.  I just dont want to take this year of TORTURE of living with my in laws for nothing.  Thats why i was wondering if it is possible in my situation to get a home loan in the next year.  My car payment is 289 my cc payments are 25, student loans total about 185.  my total debt with student loans the car and credit cards is 19k.  the home i would like to get my family is in the 175k to 200k.  im hoping within a year i can make this happen.  Like i stated before i have around 25k in savings.


Just want to add instead of paying off both CC's every month leave one CC with a very small balance for about $5. Just pay it in full after statement hits. This seems to be the consensus to help raise scores. Repeat this every month for best possible scoring.

Good Luck
May all your dreams and wishes become a reality!
Regular Contributor
jwpezd
Posts: 219
Registered: ‎04-06-2012
0

Re: How long will it take me to qualify for an FHA loan

So with all these things considered do you think I have chance in a year???
Chase Freedom-(1000) BOA 123-(2000) Home Depot-(4000)
Discover IT-(1000) Lowes GE-(1500) Orchard Bank-(300)
Regions Student Visa-(500) Best Buy Reward Zone-(500)
In the garden till 4/01/2015
Valued Contributor
rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
0

Re: How long will it take me to qualify for an FHA loan


jwpezd wrote:
So with all these things considered do you think I have chance in a year???


Unless you goodwill that 90 day late from February away, no. You will have to wait until Feb 2013, no real way around that.

 

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Regular Contributor
jwpezd
Posts: 219
Registered: ‎04-06-2012
0

Re: How long will it take me to qualify for an FHA loan

Thanks scott. I'm planning on good will letters. I plan on applying in march April 2013. I'm NOT going to have anymore negatives. I hope to get above 640. By the way what does opt out mean???
Chase Freedom-(1000) BOA 123-(2000) Home Depot-(4000)
Discover IT-(1000) Lowes GE-(1500) Orchard Bank-(300)
Regions Student Visa-(500) Best Buy Reward Zone-(500)
In the garden till 4/01/2015
Regular Contributor
sewmuchdebt
Posts: 162
Registered: ‎05-14-2009
0

Re: How long will it take me to qualify for an FHA loan

won't the op need to show at least 1 yr of on time rental history?


Starting Score: EQ 505 jul09
Current Score: EQ 702 TU 693 EX 692 apr12
Goal Score: 700+


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Regular Contributor
jwpezd
Posts: 219
Registered: ‎04-06-2012
0

Re: How long will it take me to qualify for an FHA loan

I'm paying my in laws six hundred a month at the first of every month. I can go back three years of on time rental history prior if they need me to. Is this going to be an issue??
Chase Freedom-(1000) BOA 123-(2000) Home Depot-(4000)
Discover IT-(1000) Lowes GE-(1500) Orchard Bank-(300)
Regions Student Visa-(500) Best Buy Reward Zone-(500)
In the garden till 4/01/2015
Regular Contributor
sewmuchdebt
Posts: 162
Registered: ‎05-14-2009
0

Re: How long will it take me to qualify for an FHA loan

once you overcome the hurdles of making your reports sqeaky clean for the last year and hereon, (i agree with previous poster, about going to rebuilding forum and reading everything you can and learning how to rebuild) then you need to start gathering documentation. read everything you can about qualifying for fha loans and get an idea of what lenders require.everything needs to be verified and documented and pretty much the only way is through a paper trail. bank account statements, tax returns, w2's, paystubs,cancelled checks,letters from creditors, explanation letters, the paperwork will be astounding. you have a big job ahead of you, i don't think it's an impossible one, but it will require an enormous amount of work on your part. 


Starting Score: EQ 505 jul09
Current Score: EQ 702 TU 693 EX 692 apr12
Goal Score: 700+


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