How soon can I get pre-approved for and FHA?

[ccubedzx3]

Ok here is the situation, wife and I want to build a home that has a 6-7 month build-out.  That being said, we ideally want to put a deposit down in February of  '13 with a closing date on our mortgage for August of '13...

Here is our story:

   I was recently denied an FHA loan because my FICO score was too low (583).  I was under the impression that I would be good to go because I based my pre-approval inquiry on all 3 of my scores from EQ, EX, and TRU were at 645, boy was I wrong.  I was unaware of this site, or this score (FICO score)

My last mortgage late was in February of 2011, or over a year.  I was told it needs to be 2 years without a late.  Ok, no problem.  I was then told I had other lates on my report from as recent as December of 2011.   Those have been paid off/or are on time without issue.  So let me lay out my past issues and current status.  Can someone tell me when I will be able to re-apply without issue?

Bank of America-Mortgage-Last late February 2011-  Currently being paid on time since

Wells Fargo Visa- Last Late Payment December 2011- Currently being paid on time, $1900 balance out of $2700 available

Credit Union Unsecured Loan-No late payments-Currently paid on time $650 remaining balance

Barclays Mastercard-Last Late Payment December 2011- Currently Paid Off in Full

Comerica Bank Secured Loan-Last Late Payment October 2011- Currently Paid off in full

The Home Depot- Last Late Payment May 2011- Currently Paid in Full

My Fico score is currently 590, how can I get it up to a decent enough status to re-apply? I can pay off all remaining debts with exception to my mortgage..should I pay them off, or just pay them “on-time?”  continually to show "good payment practices?"

We really hope to apply no later than February…is that possible?

Wife and I have combined income of $150K and we have a DTI of 17% including our current mortgage.

I need your help!!  Thanks in advance!

myFico-590

EQ,EX,TU-645 (based from another paid site)

[pengy_wi]

That's a ways away so I would think you could get it up. Pay the WF down to 1-10% reporting every month and try to GW the lates off. Don't add any new inquiries, pay everything on time and just wait it out. 

[JM-AM]

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@ccubedzx3 wrote:

Ok here is the situation, wife and I want to build a home that has a 6-7 month build-out.  That being said, we ideally want to put a deposit down in February of  '13 with a closing date on our mortgage for August of '13...

Here is our story:

   I was recently denied an FHA loan because my FICO score was too low (583).  I was under the impression that I would be good to go because I based my pre-approval inquiry on all 3 of my scores from EQ, EX, and TRU were at 645, boy was I wrong.  I was unaware of this site, or this score (FICO score)

My last mortgage late was in February of 2011, or over a year.  I was told it needs to be 2 years without a late.  Ok, no problem.  I was then told I had other lates on my report from as recent as December of 2011.   Those have been paid off/or are on time without issue.  So let me lay out my past issues and current status.  Can someone tell me when I will be able to re-apply without issue?

Bank of America-Mortgage-Last late February 2011-  Currently being paid on time since

Wells Fargo Visa- Last Late Payment December 2011- Currently being paid on time, $1900 balance out of $2700 available

Credit Union Unsecured Loan-No late payments-Currently paid on time $650 remaining balance

Barclays Mastercard-Last Late Payment December 2011- Currently Paid Off in Full

Comerica Bank Secured Loan-Last Late Payment October 2011- Currently Paid off in full

The Home Depot- Last Late Payment May 2011- Currently Paid in Full

My Fico score is currently 590, how can I get it up to a decent enough status to re-apply? I can pay off all remaining debts with exception to my mortgage..should I pay them off, or just pay them “on-time?”  continually to show "good payment practices?"

We really hope to apply no later than February…is that possible?

Wife and I have combined income of $150K and we have a DTI of 17% including our current mortgage.

I need your help!!  Thanks in advance!

myFico-590

EQ,EX,TU-645 (based from another paid site)

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Pay off all the CC in full except for 1 of them. Leave a small balance on the one card with <9% Util. Pay off the 2 secured installment loans which will not help your scores much but will have an impact with lenders decision. 

You can use your CC's all you want just make sure you pay one in full before the statement hits and leave a very minimal balance on the other for arguments sake lets say leave $5. Then once the statement hits pay it in full as not to accrue interest charges. Repeat this process month after month for best scoring purposes.

Also a reminder do not be late any more on any payments. You need to have 12 months of on time payments with CC's and loans, and 24 months of on time payments with mortgages before applying. So according to the dates of negative activity you would qualify if you bring your scores up, in Feb-March of 2013 (depending on what date in Feb you were late).

You can do it! Have plenty of time to bring scores up.....

[ccubedzx3]

Thank you for the replies.  In actuality, all of my cards are closed with the exception of Wells Fargo.  So I have only a few things reporting out going forward:

-Bank of America Mortgage-   $1300/mnth  $140,000 remaining balance

-Wells Fargo C.C.-  $58/mnth  $1900 remaining balance

-Installment Loan- $115/mnth $600 remaining balance

-DTE Energy-Utility- $110/month recurring every month

I can easily pay off the C.C. and the Installment Loan, and if I do that, I will only have 2 items reporting monthly.  Should I attempt to open another line of credit? I don't want to do any more harm then good.

Thank you! Every response is another step in helping not only me, but others in the same situation out!!