Was wondering if anyone could give me some advice on my situation.
My goal is to buy a house appraised at $148,000. I have very low credit scores (low 500's). I have many old collections. I have had an unsecured loan for the last three years with perfect payments. I have had an auto loan for the last three years with pretty decent payments (couple lates).
My debt situation is as follows:
Old Collection Debt $6000
Auto $12000
Unsecured Loan $3500
Unsecured Loan $2200
I understand that I need to get my credit cleaned up and have been working my tail off to get this done.
I am in the process of getting a secured loan (I own a $22,000 lot and my vehicle) to payoff of old debt (including any collection accounts) and consolidate my payments to one payment. I work with my local bank who is very helpful, but would have to outsource the mortgage loan.
I have hired Lexington Law to help me keep my credit report updated with the paid off collections.
My position within the next two to three weeks will be as follows:
All old collections paid off
Consolidated Secured Loan for other debt
Will have $5000 reserves in the bank
Will have approx $18,000 to put down on the $148,000 condo (a new construction unit in a six plex)
The downpayment will come from a bonus through my employment. My normal salary is $44,000 per year.
Does it seem feasible that I will be able to qualify for a mortgage? Am I heading in the right direction? Does anyone have any input? Does anyone have any references for the state of Iowa?
Thanks very much!!!!
