We are currently knee deep in an FHA 203k streamline loan. We have done ALL the paperwork, hired a Hud consultant, picked the contractors, got the estimates, had the appraisal, etc etc etc. Our loan has gone to processing and our lender says it should go to underwriting by Tuesday at the latest. I am all of a sudden extremely nervous! I feel we have lots of "ehhh" factors that maybe if we had 1 or 2 it would be ok but not sure about all of it.
1. Credit scores- mine 680 husbands 660. We have multiple late payments/collections from late 2012 early 2013. My husband lost his job so we hit an extremely tough rough patch. All collections were paid in full by the end of 2013 except 1 that is still open for $400. We have made MULTIPLE attempts to contact the law office who holds this debt and they refuse . No late payments since then.
2. We have been living with family since 2013 in order to catch up, pay off debt and save up for a house. So we have no rental history. (We had lived on our own since 2005 before that but I don't think it matters)
3. Hubby has worked in the same job field since 2005 with a total of 3 jobs since then. He has been with his current employer since April 2014. His position at his previous job was eliminated so he was out of work for a 7 week period in March-April 2014. He had a job offer within 3 weeks but I gave birth to our daughter earlier then expected so he set his start date with the new company for a few weeks out.
4. Trade lines......I'm not sure exactly what counts. In my name I have a 13 month old credit card, a 15 month old credit card that I have never used, 2 older car loans, and an older personal loan. Hubby only has a 6 month old credit card and he is a user on my 13 month old one (it does report to his credit report). Not sure if this all is good enough.
5. Savings: this category is probably the only I am comfortable with. We will have $9000 left in savings after closing.
We wrote a ton of letters explaining every detail of each "bad" thing but I still feel like we will wind up with too many red flags. Thoughts?
Have fun with this!