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

Valued Contributor

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


sewmuchdebt wrote:

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. 


I don't think its an enourmous amount of work at all.. he has comparable salary, and comparable wages to me, and  is probabaly in a better situation than I started actively trying to get ready to buy a house, which was a little over a year ago.. I got my score up to over 700... you will be able to get there if you hit the repairing fine..

 

I think this wording is a little intimidating... sure, all that documentation IS needed, but it really isn't that much work if you keep records... i don't think it is enourmous at all.. it will take some effort and time, but a years time? you can EASILY make this happen is a year...

 

-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
Message 11 of 21
Regular Contributor

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

I'm committed. I spoke with a LO from wells Fargo and the way he made it sound to me that my report didn't have to be perfect with my amount of cash reserves and income I should be fine. In fact he told me to get to 600 and I would be fine. I was a little surprised by that. I plan on working hard at this. I didn't know with an FHA loan I had to have a squeaky clean report. But I will Di what it takes thank you guys.
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
Message 12 of 21
Valued Contributor

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


jwpezd wrote:
I'm committed. I spoke with a LO from wells Fargo and the way he made it sound to me that my report didn't have to be perfect with my amount of cash reserves and income I should be fine. In fact he told me to get to 600 and I would be fine. I was a little surprised by that. I plan on working hard at this. I didn't know with an FHA loan I had to have a squeaky clean report. But I will Di what it takes thank you guys.


You don't need a squeaky report at all, it just can't be NEW. That is your issue..

 

Nothing can be new. No collections, no late payments, nothing. EVERYTHING has to be aged at least a year. That is the only REAL battle you are facing.

 

I mean, clearly, there are alot of factors into getting a home, like what you can afford, qualify for, DTI, all that.. but my report wasn't clean. When I started I had 19 collections, 2 judgments, a charge off and a tax lien, with no positive accounts... within a year, when I started looking for homes, I had 3 collection accounts, 2 PAID judgements, and a paid tax lien... all older than a year (all older than two actually)

 

I close on Thursday.. and it really wasn't a ton of work, I mean it was WORK, but if you allow the time you can make it happen..

 

Booner is another exmaple of someone who started around the same time as me, and she closed way earlier than me, and she had stuff to take care of too..

 

It is more than doable..

 

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
Message 13 of 21
Regular Contributor

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


rckstrscott wrote:

sewmuchdebt wrote:

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. 


I don't think its an enourmous amount of work at all.. he has comparable salary, and comparable wages to me, and  is probabaly in a better situation than I started actively trying to get ready to buy a house, which was a little over a year ago.. I got my score up to over 700... you will be able to get there if you hit the repairing fine..

 

I think this wording is a little intimidating... sure, all that documentation IS needed, but it really isn't that much work if you keep records... i don't think it is enourmous at all.. it will take some effort and time, but a years time? you can EASILY make this happen is a year...

 

-scott


i'm not trying to send out intimidating words. maybe my use of the word enormous was not the correct word to use. a lot of people have hurdles when buying homes including myself, and i think you have to be realistic about about your own individual situation.op stated that he/she has 120, 90 day lates, and a couple of other bad marks. it IS alot of hard work to get that removed/settled. i don't dare crush someone else's hopes and dreams of homebuying. but i like to be honest too.


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


Take the FICO Fitness Challenge
Message 14 of 21
Valued Contributor

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


sewmuchdebt wrote:

rckstrscott wrote:

sewmuchdebt wrote:

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. 


I don't think its an enourmous amount of work at all.. he has comparable salary, and comparable wages to me, and  is probabaly in a better situation than I started actively trying to get ready to buy a house, which was a little over a year ago.. I got my score up to over 700... you will be able to get there if you hit the repairing fine..

 

I think this wording is a little intimidating... sure, all that documentation IS needed, but it really isn't that much work if you keep records... i don't think it is enourmous at all.. it will take some effort and time, but a years time? you can EASILY make this happen is a year...

 

-scott


i'm not trying to send out intimidating words. maybe my use of the word enormous was not the correct word to use. a lot of people have hurdles when buying homes including myself, and i think you have to be realistic about about your own individual situation.op stated that he/she has 120, 90 day lates, and a couple of other bad marks. it IS alot of hard work to get that removed/settled. i don't dare crush someone else's hopes and dreams of homebuying. but i like to be honest too.



Oh -- I am not disagreeing with you on that. I was merely pointing out OP mentioned a year from now, and those late payments will age out of the damage zone for the most part.. With OPS scores where they are, and those lates aging older than a year, as long as the debt is paid on any outstanding collection account I didn't see any reason why OP couldn't qualify for an FHA loan..

 

 

s-cott

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
Message 15 of 21
Regular Contributor

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


sewmuchdebt wrote:

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. 




i was not referring to op's report having to be squeaky clean as in nothing negative ever, just nothing negative within the last year. it seems like my posts are being taken out of context and trying to offer encouraging info is not going well. op, good luck in your quest to rebuilding and future home purchase.


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


Take the FICO Fitness Challenge
Message 16 of 21
Regular Contributor

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

Hey nothing is taken out of text on my part I appreciate any feedback. I'm doing everything I can to get a home any help along the way will be great. I'm only 24. I have made my credit mistakes and will never go down that road again. I have a kid and a wife with my income and savings it's embarrassing that I can't buy them the house they deserve. If that isn't enough motivation to clean up my financial outlook than I don't know hat else is.
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
Message 17 of 21
Senior Contributor

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


jwpezd wrote:
I'm committed. I spoke with a LO from wells Fargo and the way he made it sound to me that my report didn't have to be perfect with my amount of cash reserves and income I should be fine. In fact he told me to get to 600 and I would be fine. I was a little surprised by that. I plan on working hard at this. I didn't know with an FHA loan I had to have a squeaky clean report. But I will Di what it takes thank you guys.


There are some really sad stories around here of Wells Fargo leading people on and getting them hooked, then telling them "oops, can't do it."  I would get another recommendation from a broker or mortgage banker before I got my hopes up.  Wells Fargo seems to be the #1 bank I've read about on this forum that does this to people.

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
Message 18 of 21
Established Member

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


rckstrscott wrote:

sewmuchdebt wrote:

rckstrscott wrote:

sewmuchdebt wrote:

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. 


I don't think its an enourmous amount of work at all.. he has comparable salary, and comparable wages to me, and  is probabaly in a better situation than I started actively trying to get ready to buy a house, which was a little over a year ago.. I got my score up to over 700... you will be able to get there if you hit the repairing fine..

 

I think this wording is a little intimidating... sure, all that documentation IS needed, but it really isn't that much work if you keep records... i don't think it is enourmous at all.. it will take some effort and time, but a years time? you can EASILY make this happen is a year...

 

-scott


i'm not trying to send out intimidating words. maybe my use of the word enormous was not the correct word to use. a lot of people have hurdles when buying homes including myself, and i think you have to be realistic about about your own individual situation.op stated that he/she has 120, 90 day lates, and a couple of other bad marks. it IS alot of hard work to get that removed/settled. i don't dare crush someone else's hopes and dreams of homebuying. but i like to be honest too.



Oh -- I am not disagreeing with you on that. I was merely pointing out OP mentioned a year from now, and those late payments will age out of the damage zone for the most part.. With OPS scores where they are, and those lates aging older than a year, as long as the debt is paid on any outstanding collection account I didn't see any reason why OP couldn't qualify for an FHA loan..

 

 

s-cott


This question is for Scott. I have a collection that is close to 3 years old. I would like to qualify for a FHA loan. You state that negative items need to be at least a year old. I'm confused about this. Do I need to pay the collection acct, even if it's past the 1 year? Thanks in advance.

Message 19 of 21
Valued Contributor

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


adrian70 wrote:

rckstrscott wrote:

sewmuchdebt wrote:

rckstrscott wrote:

sewmuchdebt wrote:

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. 


I don't think its an enourmous amount of work at all.. he has comparable salary, and comparable wages to me, and  is probabaly in a better situation than I started actively trying to get ready to buy a house, which was a little over a year ago.. I got my score up to over 700... you will be able to get there if you hit the repairing fine..

 

I think this wording is a little intimidating... sure, all that documentation IS needed, but it really isn't that much work if you keep records... i don't think it is enourmous at all.. it will take some effort and time, but a years time? you can EASILY make this happen is a year...

 

-scott


i'm not trying to send out intimidating words. maybe my use of the word enormous was not the correct word to use. a lot of people have hurdles when buying homes including myself, and i think you have to be realistic about about your own individual situation.op stated that he/she has 120, 90 day lates, and a couple of other bad marks. it IS alot of hard work to get that removed/settled. i don't dare crush someone else's hopes and dreams of homebuying. but i like to be honest too.



Oh -- I am not disagreeing with you on that. I was merely pointing out OP mentioned a year from now, and those late payments will age out of the damage zone for the most part.. With OPS scores where they are, and those lates aging older than a year, as long as the debt is paid on any outstanding collection account I didn't see any reason why OP couldn't qualify for an FHA loan..

 

 

s-cott


This question is for Scott. I have a collection that is close to 3 years old. I would like to qualify for a FHA loan. You state that negative items need to be at least a year old. I'm confused about this. Do I need to pay the collection acct, even if it's past the 1 year? Thanks in advance.



Depending on the type of loan you are applying for and or underwriter will determine if you will have to pay off the collection.

Good Luck
May all your dreams and wishes become a reality!
Message 20 of 21