Lates hurting our chances??

[daninicole]

it has been about a 3 year journey from the point of selling our condo to getting to the point of a new build. We sold our condo in 2013 and we took a bit of financial hit paying to get out of it. We got 120 day lates back in March on a store credit card. The 2 car lates were over a year ago as well as our timeshare late. So the only major issue we had was a defaulted student loan which I rehabbed successfully (before we moved and took a financial hit). We have rebounded financially and Our credit scores squeaked by and we have money for FHA downpayment. We would like to apply nnext month because  #1 we've been with parents for over a year in one room with a 3 year old. #2 we are expecting baby#2 in late Feb and we really want to be in our own home for space reasons. So my question Is will those cc lates hurt our chances since they are not technically a year old?  We got a letter from the cc company saying we completed the program to get our account back on track and we had the cc for over 12 years before we had any lates on it. We don't  don't have foreclosures or bankruptcies and it seems as if people in much more dire situations have purchased homes. We want to get the ball rolling because as I said we want to build and we know that will be at least a 3 month process so the quicker the approval is done we can begin building. I just wanna know is this gonna be a holdup or straight denial until March when cc lates are a year old?

[StartingOver10]

---

@daninicole wrote:

it has been about a 3 year journey from the point of selling our condo to getting to the point of a new build. We sold our condo in 2013 and we took a bit of financial hit paying to get out of it. We got 120 day lates back in March on a store credit card. The 2 car lates were over a year ago as well as our timeshare late. So the only major issue we had was a defaulted student loan which I rehabbed successfully (before we moved and took a financial hit). We have rebounded financially and Our credit scores squeaked by and we have money for FHA downpayment. We would like to apply nnext month because  #1 we've been with parents for over a year in one room with a 3 year old. #2 we are expecting baby#2 in late Feb and we really want to be in our own home for space reasons. So my question Is will those cc lates hurt our chances since they are not technically a year old?  We got a letter from the cc company saying we completed the program to get our account back on track and we had the cc for over 12 years before we had any lates on it. We don't  don't have foreclosures or bankruptcies and it seems as if people in much more dire situations have purchased homes. We want to get the ball rolling because as I said we want to build and we know that will be at least a 3 month process so the quicker the approval is done we can begin building. I just wanna know is this gonna be a holdup or straight denial until March when cc lates are a year old?

---

^^^ Was that 120 day late in March of 2013 or March 2014?

[daninicole]

It was 2014 unfortunately. I am hoping it is not a deal breaker. 

[Anonymous]

The 120 days late is going to be tough but you may just need a LOE to explain why it happened and how you are going to prevent it in the future. I would think the bigger issue might be living with your parents. Do you pay them rent and how do you pay that rent? I know when I applied for my mortgage they needed to verify my current rent and rent payments for the previous year. Since I was living in an apartment for most of that time they just contacted the property management company for verification. I lived with a friend for about 2 months because my apartment was flooded and I needed to move out, that presented a bit of a snag but I always paid the rent with a check so I was able to give them that information, and was cleared.

[daninicole]

Well we have only been out of our house for a year so we have the info and we don't pay rent but we do pay a bill for them. Also we have all of our other bills that we continued to pay while we are with them (car notes, cc, and student loans). We also saved a bit while we have been here. It started the second half of the year once we rebounded from the issues we had with selling. Thanks for the response. I just wanted to know what others thought because according t our LO we needed to lower our DTI by paying down CCs (which we did), handle a charge off (which we did and had deleted), and to raise our scores which happened as we did the things mentioned above. He only said that the late CC was hurting our score but did not say it would be a definite no, nor did he say anything about our living situation. I guess I will just have to see how things go once we apply the middle of next month. Thanks again!!