This board has been so helpful in me rebuilding my credit I've decided to start a "Can I Get A Mortgage" thread and see what help you all can give me on this front.
I'm a Navy veteran who can use a VA loan. I plan to use VA to minimize what I need to get in to a home. My cash reserves have been hit hard by medical bills and I want to expend as little upfront cash as I can. In truth this probably isn't the ideal time but right now I'm paying $1950 a month in rent which is such a waste. With interest rates so low I want to go ahead and make a move now if possible. Our time frame is the end of the school year. I'd like to look to close in early May or June.
- Credit.
My current scores are:
Equifax – 632 (FICO pull from EQ site)
Transunion – 670 (MyFICO pull)
Experian – 677 (from EX site, not FICO)
- I have 3 State Tax Liens all from pre-2005 that are all released but still on my reports.
- I have 3 chargeoffs all from 2008.
- I have a car loan that was paid off in 2010. It is showing a 30, 60 and 90 AFTER the final payment. I'm getting that resolved (have a letter from Santander). However, there are 6 accurate 30 day lates over the 5 years of that car loan (most recent in early 2010).
- There is 1 collection on my TU report that is an error. I have spoken to the CA and they are removing it and have offered a letter if I need one for the mortgage lender explaining it was sold to them in error. this is only on TU.
- I have 2 current car loans. One is over 2 years old. No lates on either.
- I have 2 Cap 1 cards I've had under a year, no lates. I keep my util below 15% but will keep below 9% moving forward.
- Income. Gross income is $120,000 annually. I have an additional $21,000 in bonuses paid quarterly at $5250 per quarter. I have a few other bonuses that I won't bother to count because they are more sporatic.
- Source of income. I'm a salaried full time employee
- Monthly debt payments. I have one car loan at $550 and one at $434. My 2 Cap 1 cards have $25 minimum payments but I always PIF. So total monthly is under $1,000.
- Employment - I've been with my current company since June 2012. I've been without a break in employment since 2004 and I've been in the industry for 22 years.
- Assets/Reserves. I honestly don't have much in reserve right now as I'm bouncing back from a few years of heavy medical bills due to my sons brain tumor and paying back debts incurred during that time to clean up my credit. However, I'm currently socking away about $3,000 a month so by May when I'd be looking to close I'll have around 17k in reserves.
- Location. I'm in Katy, TX (outside Houston).
- Property. Single Family home
- Value. We are looking at homes between 300 - 360K
- Occupancy. Primary Residence
- Transaction Type. First home purchase
Any comments, advice or suggestions would be much appreciated. My scores should qualify for VA. I'm concerned about having a thin file but I've heard for VA they look more at the last 12 months. I've been perfect on everything for over 2 years but much like anyone rebuilding my file is thin. I have a LO I'm working with but honestly I've recieved better advice from this board over the last few months than any "professional" out there so I value the insights of this board tremendously.
Thanks in advance for any feedback!
Current scores EX: 678 (lender pull), MyFICO TU: 696 & EQ: 664
