Need your opinions

[luckyashes04]

How often is it that UW's will look at stuff on your CR from many years ago? Or do they mainly focus on things from the past 2 years?  My husband went through a divorce, and then lost his job about 5 years ago, and there were several things that happened on his CR during the time becausae of no income. However the past 3 years we have paid nothing late. So I was just wondering if UW will focus on the past 2 years or from many years ago.  We are going the FHA route

[MovingForward_2012]

When it came to my BKs, the UW wanted a lot of info on them and a letter of explanation for both the Chapter 7 & 13. The 7 was filed in Aug 2003 and the 13 was filed in Oct 2005. The 13 was no longer listed on my credit report and the UW still wanted a LOE, and filing and discharge papers. I also have a unpaid collection from 2009 that did not have to be paid but they wanted a letter of explanation.

So I would definitely be ready to write LOEs for all derogatory items remaining on your credit report. I closed on an FHA loan on 2/6/13.

[JM-AM]

General rule of thumb...

If since your financial breakdown several years ago, you have reestablished credit and showed financial responsibility, it is looked at in a good light.

Depending on what type of debts, amount of debts, and SOL, can cause concern for some UW's, which they may require them to be paid (not always). Just you have to be ready and prepared to pay them if required (you can settle for less then amount owed if agreed upon with creditor if you have to pay them).

In retrospect, it is rare they require you to pay them, but it is possible.

If your scores qualify, income qualifies, employment qualifies, DTI qualifies, and any other overlay requirements needed are good, you should be okay.

[MovingForward_2012]

+1, but be ready to write a lot of LOEs.