Mortgage Loan soon (hopefully)

[daninicole]

Let me start by saying in soon I mean 6 months to 18 months (Probably closer to a year). Currently have our town home on the market. Realtor expects a sale soon. When it happens we plaN to stay with parents for the above mentioned time to fix credit and save for a down payment. My credit is not the best. Hubby's is better but we both have taken dings in the last two years. I think we can get our credit to meet FHA requirements because our collections amount and utilizations on certain cards are pretty low. without having a mortgage to pay while living with parents i think we can attack those without too much of a problem. My question is, we both have student loans and we share two auto loans, and the  student loans are in good standing, so will they account into our monthly debt? They are forbeared and we currently won't have to pay. I would like to be in the home before we have to pay these loans back. I guess I'm asking if student loans affect a mortgage loan if they aren't defaulted or currently being paid (forbeared). I also have a lien that I got when I bought a car from S. Carolina in 2005. I traded in the car like 5 years ago. I will pay the lien if I have to, I just want to know what effect that will have on getting a mortgage loan. I also have a judgement which was paid so I don't owe it. Help please!!!!!

[MovingForward_2012]

You need to start a payment plan for that lien. Most lenders require at least 6 months of on time payments to the lien shown before they will approve. Collections, charge offs, and late payments will need to be at least a year old before they will approve and depending on your score, the UW may want all or some of them paid as a condition for approval. You should goodwill the ones that are paid, ask for a settlement on the ones that are unpaid and request a letter stating that satisfying this debt will result in account deletion off the credit bureaus. If your score is stellar, they may let you slide from paying one of them or approve you with one 30 day late in the past 12 months. It is in your best interest to get the student loans in repayment as most likely they are your oldest accounts and if you start paying it, lenders will view that favorably and you will get a score boost from on time payments to those accounts. And paying them down will reduce your debt to income ratio and possibly qualify you for more house if you can refinance them to get the monthly payment lowered.