cancel
Showing results for 
Search instead for 
Did you mean: 

I've spent years coming back from a nightmare and ready for home ownership again.

tag
rivernh
Contributor

I've spent years coming back from a nightmare and ready for home ownership again.

After my divorce, and single parent hood, my credit took a severe beating.  I lived for several years without credit and all before finally forced into a car loan after an accident. I had dozens of collections in my report, late payment...I have no idea how bad itreally was...

 

So the past few years, I have been working on  credit repair, and I started a new successfull business.

 

My credit scores are 651, 651, 686.  I am working to get some paid medical derogatories off. (All of the derogatories are paid medicals except for

I have one late payment on the student loan.  I'm hoping I can get a GW deletion from that late payment. (I got distracted that the forbearance had expired, when my sons father died unexpectely, resulting in a quick move and rearrangement of life. I have to write and explain what happened, and hopefully they will just do a gw forgiveness of the late payment...

The other negatives are that I don't have an auto loan right now. (It's paid off, in good shape, and I don't need a new car)

My average account age is only about 3.5 years, with oldest account  7 years old.  I have a large student loan balance, but its in good current standing, and I have a credit card balance ranging from 0-50 dollars most months. (I have about 3800 total limit.

 

I am self employed since Jan 2007.  My 2007 income was partly self employment and partly wages from a job.  I earned 55,000.  In July  2007 I started doing my home business full time and for 2008. my income was a lot higher, about 150K-160k net. I have documentation in the form of income tax returns (or will shortly for 2008).  I'm appllying at the bank that I deposit my earnings into, so they can also verify my earnings for my business as well.

 

I have about 25K -30K to use, and I am ready to apply to a lender.

 

Will I have any trouble with a variable incomes in 2007/2008, esp since 2008 was a whole lot better? (I'm assuming they will average the two incomes)   My son gets a Social security death benefit...is that counted under my income?  (I have been saving the bulk of it...)

 

And should I anticipate any problems?  And I wonder how much I'll get approved for.  I actually have crunched the numbers and it seems like I could get a much bigger mortgage then I need.

Am I going to be a reasonably attractive as a borrower to lenders? 

Message 1 of 2
1 REPLY 1
Anonymous
Not applicable

Re: I've spent years coming back from a nightmare and ready for home ownership again.


@rivernh wrote:

After my divorce, and single parent hood, my credit took a severe beating.  I lived for several years without credit and all before finally forced into a car loan after an accident. I had dozens of collections in my report, late payment...I have no idea how bad itreally was...

 

So the past few years, I have been working on  credit repair, and I started a new successfull business.

 

My credit scores are 651, 651, 686.  I am working to get some paid medical derogatories off. (All of the derogatories are paid medicals except for

I have one late payment on the student loan.  I'm hoping I can get a GW deletion from that late payment. (I got distracted that the forbearance had expired, when my sons father died unexpectely, resulting in a quick move and rearrangement of life. I have to write and explain what happened, and hopefully they will just do a gw forgiveness of the late payment...

The other negatives are that I don't have an auto loan right now. (It's paid off, in good shape, and I don't need a new car)

My average account age is only about 3.5 years, with oldest account  7 years old.  I have a large student loan balance, but its in good current standing, and I have a credit card balance ranging from 0-50 dollars most months. (I have about 3800 total limit.

 

I am self employed since Jan 2007.  My 2007 income was partly self employment and partly wages from a job.  I earned 55,000.  In July  2007 I started doing my home business full time and for 2008. my income was a lot higher, about 150K-160k net. I have documentation in the form of income tax returns (or will shortly for 2008).  I'm appllying at the bank that I deposit my earnings into, so they can also verify my earnings for my business as well.

 

I have about 25K -30K to use, and I am ready to apply to a lender.

 

Will I have any trouble with a variable incomes in 2007/2008, esp since 2008 was a whole lot better? (I'm assuming they will average the two incomes)   My son gets a Social security death benefit...is that counted under my income?  (I have been saving the bulk of it...)

 

And should I anticipate any problems?  And I wonder how much I'll get approved for.  I actually have crunched the numbers and it seems like I could get a much bigger mortgage then I need.

Am I going to be a reasonably attractive as a borrower to lenders? 




I couldn't speak to your income situation -- I have no idea as to how self-employed borrowers document their incomes!

But I can say that *I* would say that otherwise, you look really good. I wouldn't worry too much about that one late -- even if it happened fairly recently. A death in the family is usually, as far as I could see, a mitigating circumstance. So even if the student loan lender has no soul, I'm sure the mortgage underwriter WILL. You'll just have to write a letter explaining the situation.

Also $25K is hefty down payment -- unless, of course, you're looking to plunk it down on a million-dollar home! LOL! I'd expect that all of your criteria would make you VERY attractive to a lender!! Chances are, you'll sail through Automated Underwriting and just have to provide the Letter of Explanation and the documentation to support your income and earnings.

As to the SS benefits, I don't know if you would have to claim them -- don't even know if you could, seeing as how you're essentially (I assume) keeping them in a "trust" for your son. Hopefully, Shane or Dallas, our resident exalted Mortgage Gurus here, will chime in soon!

Congrats on being so together!! And my deepest condolences on your son's father's death. Give your sweet boy a hug for us here at MyFICO. Smiley Sad
Message 2 of 2
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.