Mortgage Loans

[glendazamot]

Well my plan is to apply for a mortgage around March of this coming up year. Going back in August of this year my credit was horrible. Had about 6 collections and 3 charge offs. Fast forward now Im left with one paid collection and 2 charge offs, currently working on getting one removed. Felling a little dissapointed because after getting 5 collections and 1 charge off removed my TU score went up 12 pts and EQ 26. I have my car loan which I got in Jun of 2011 ( currently owe about 4,500)and has been on time everymonth and I just opened a secured card ( for 300) about 2 months ago and also Im a AU user in my mom's walmart cc. These are the only positives on my credit report. My question is , are these enough positives to get a mortgage loan? Should I opened another line of credit?or Should I increase my secured card limit ?
I am planning to apply for a USDA home loan if it helps.

Thanks ya'll

[germaine47]

Please don't give up.  If I got a home after pulling my Fico up after the journey from student loan  default hell, I know that it is possible for you as well.  My Experian was at 573 approximately one year ago, but I closed on my home on May 4th, 2012.  What is your Fico Score?  You will need 3 positive tradelines as well as no lates for at least one year. 

Start Gathering:

1.  Two years of W2s
2.  Two years of Tax Returns
3.  Two months of Pay Stubs
4.  Two months of Bank Statements (Let your funds season for 30 days and make sure you don't have any overdrafts showing on Statements)
5.  Current Driving License and Social Security Card
6.  USDA requires no downpayment but prepared to have at least 5% of Closing Cost put aside prior to applying (For example if house cost $120000 have $6000 saved just in case Seller will not contribute to Closing Cost)

Repeat after me, "I deserve every happiness that includes my beautiful home".

[glendazamot]

Very nice words of encouragement!!

Now everything that you said does not seem a problem, I guess my only question is going by what you posted I would need one more positive tradeline but does that need to open for a year before I can apply for the mortgage. Also my scores are 620 TU and 626 EQ.

[germaine47]

My Mortgage Broker required that my Middle Score had to be 640.  I had to use one non-traditional trade line (electric bill), because some of my trade lines that I had only reported for 11months.  The Utilities gave me a hard time because for the most part even though I never was 30 days late they didn't  want to write documentation to that affect  (great MB worked it out). Get copies of your credit report before your Ficos are pulled and let the Broker look over file to see if there is anything on there that will need to be worked out.  I think that helped me a lot during my UW process.

[beb86]

there are going to look for 12 months of clean history and the like to see 4 positive TL's

[glendazamot]

Very good info. Germaine!