MORTGAGE APPROVAL

[Anonymous]

HI everybody. Im new to this forum and I have a question. My fico scores are 635, 620 and 610. I have a unpaid judgment that just fell off my report a few days ago, I also have 3 late payments showing on my credit ,two of them are  credit cards and one for 150  dollars for a  gym membership.Two of them are over 3 years old and one of them just got renewed. My questions are , Should I pay the credit cards or should I just leave them alone. Also what are my chances of getting approved for a mortgage loan. My income is 43000 a year ,, my only debt two credit builders loans , one for 1000 and another one for 1500. I also have a secured capital one credit card for 200 dollars.

[Anonymous]

Most lenders require at least a 620 credit score to qualify for FHA, which is a 3.5% down payment loan. Credit wise you would probably be fine, it is a matter of what your debt ratios would look like when factoring in the house payment.

What area are you looking at?

[Anonymous]

I'm looking at $ 120.000 loan. I'm in las Vegas but my biggest problem is that my wife foreclosed on the house that she purchased before we were married. Almost every loan person that I have spoken to give the same answer that because Nevada is a community property state they have to consider my wife debt and credit for my to qualified for a fha loan Any advice ?

[Anonymous]

I too live in and have done loans in a number of community property states. We always get a credit report on the non-purchasing spouse solely to include their debts in the DTI ratio.

How long ago was her foreclosure?

[Anonymous]

It was last year around the end of June. We didn't even know because the house was up for short sale . Wells Fargo was the bank that had the loan for the house and they never sent a letter or anything at all they just auction off the house  and we found out because we had a paper taped to the front door .

[Anonymous]

You should be fine getting approved on your own. Does she have any debts of her own that  would count against you?

[Anonymous]

Yes she has two car loans but  she only has 10 more months left to paid them off. She also has a few credit cards and one personal loan that she never paid due to the birth of our son . He was three months ahead of time and we struggle financially for a while our main concerned was to pay the mortgage even thought we end up losing the house after all  

[Anonymous]

---

Those would need to be included in your DTI. Even though the car loans have 10 months left on them, most u/w would still count them if they are considered "significant debts".

You may still qualify, depending upon the monthly amounts on those acccounts. I think it is well worth your while to go forward, especially in the buyer's market Vegas is.