Mtg question

[Anonymous]

Ok...If someone has credit scores in low 500's...one is 521 but no new accounts, no new late payments or anything derogatory in 16 months (old forclosure and repossesion , old medical collections and one old utility charge off all 16 months or older...most over 4 years old), does this person have a chance with FHA or Va or any other type of loan. If yes, does anyone know of a company in Texas (dallas area) that could help. Person was a military vetran so would qualify VA. I have heard FHA and VA look more at past years history and income rather than Fico.... Thanks

[nicemann]

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daisymae9368 wrote:

Ok...If someone has credit scores in low 500's...one is 521 but no new accounts, no new late payments or anything derogatory in 16 months (old forclosure and repossesion , old medical collections and one old utility charge off all 16 months or older...most over 4 years old), does this person have a chance with FHA or Va or any other type of loan. If yes, does anyone know of a company in Texas (dallas area) that could help. Person was a military vetran so would qualify VA. I have heard FHA and VA look more at past years history and income rather than Fico.... Thanks

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FHA does go off of past history.  I know FHA does not finance the loan, you go through a loan company that is FHA is certified.  They may have a minimal score that want.  FHA is kind of like insurance for if you don't pay the company is not out all of the money.

As for knowing someone in Dallas that may be able to help....I would suggest you talk to "DallasLoanGuy" (Tom).  I am sure he will chime in today.  He has helped numerous people on this board.  If you scroll done in the forum you will see several responses from him.

Good Luck!

Message Edited by nicemann on 06-22-2008 07:01 AM

[DallasLoanGuy]

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daisymae9368 wrote:

Ok...If someone has credit scores in low 500's...one is 521 but no new accounts, no new late payments or anything derogatory in 16 months (old forclosure and repossesion , old medical collections and one old utility charge off all 16 months or older...most over 4 years old), does this person have a chance with FHA or Va or any other type of loan. If yes, does anyone know of a company in Texas (dallas area) that could help. Person was a military vetran so would qualify VA. I have heard FHA and VA look more at past years history and income rather than Fico.... Thanks

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a chance. better chance with solid rent history andmaybesome other positive 'non-traditional tradelines' <= cell phone, insurance, ect.

where did you get those scores?

how old is the foreclosure?

[Anonymous]

Thanks for responding. Ok, i got the score from myfico, it is supposed to be my equifax score. We are currently renting and have been here for 6 months as of july. We have been maybe a week late once or twice...once because landlord was out of country....we pay bi weekly , but never 30 days late. Before this we lived a few years in a home but no rent was paid and that person does not want to be contacted. I already asked. We have car insurance that has been paid faitfully every month for the last 2 years. No cell phones or cable ect....home phone and electric are just through pre paid companys and we have switched a couple of times this past year in favor of better rates. Our car is fully paid for and we have no credit cards or any other payments. Only my husband works so we live very simply.

The forclosure is listed as innitiated in 2004 but that is all it says.

[DallasLoanGuy]

when was the property surrendered? you will need to know when it was 'completed' per guidelines.

[Anonymous]

Please forgive me for knowing nothing about this...I know it was innitiated in october of that year and by december the house had been sold at an auction and the balance was zero.

[DallasLoanGuy]

then you should be safely outside the 3yr window.

fha requires 3yrs to pass from date of completion. sold with zero balance should be completion.

you really need a minimum of 3 tradelines. rent being 6 months is not one(must be 12 months)

you really need to sit down with a loan officer that knows these guidelines. you may not qualify today, but a good loan officer might be able to put you on track for a loan in 6 months

[Anonymous]

Thanks....our real estate agent gave us some mtg numbers I am calling tomorrow so i will see what they say. Maybe we will get lucky. The thing about our former rental was that we were using what would have been rent money to for repairs and upkeep on living conditions that were horrible. I asked if they would verify that were were paying in the form of repairs and she said no...I guess she does not want to look bad for being a slumlord.