6 months ago I started looking into buying a house for my family. I was getting out of the military after 10 years due to war injury and relocating to work for my father's company. When we looked at my credit we discovered ID Theft. At that time my FICO was 460. My wife busted her butt for 6 months and now has it up to 605. I have no auto loans as we paid them all off before relocating. I have one CC with my bank. Wells Fargo has said they will accept my credit score for a VA Loan.
On my credit report there are 3 accounts that are bad that I had to write letters of explanation about
1) Ford Credit: several late payments due to an issue with them over changing the due date back in 2007-08. Once they finally fixed the date they went back and erased late payment charges, but said they couldn't fix credit report. We paid off that car Dec. 2010
2) First Hawaiian Bank had 2 late payments this past Sept and Oct. They were considered late because my wife paid at the teller after 2pm and they didn't post them until the next business day. After disputing this with them they didn't charge us the fees. We had this auto loan with them for 2 years and paid it off in January 2011.
3) Coastal Credit: This was a MESS. When I got orders to Hawaii I could only bring 1 car with me. We got advice from base legal to turn our second car over to the lender and ask for them to sell at auction and we pay difference. We were told they do this for military. Our lender agreed. We turned the car over and moved. We were called and said the car sold for more than what we owed and per our agreement, our loan was paid off and we didn't recoup any money. 3 years later, about a week before I deployed to Afghanistan, we got a call from a collector saying we owed $7k still on the car. They began threatening my wife and under that stress and the stress of me deploying and leaving her home alone with our 6 month old triplets, she entered into a payment plan with them (after trying to call Coastal and them refusing to return calls. ) We didn't owe this money. We ended up filing against Coastal and the Collectors (due to threatening my wife) with the BBB. We paid this off on March 2011.
Other than that, my credit is clean. The CC we have, we've had for 6 years and have never been late.
I am making $60k at my new job.
My Wells Fargo LO is saying she cant see why the underwriter would deny, but I am nervous as hell. I have a wife and 3 little 2 1/2 yr olds that I need to get a home for (our rental is about up and I want something stable!)
Thanks for your help and any suggestions
