New Mortgage with Previous Missed Mortgage Payments

[Anonymous]

My wife and I would like to buy a house sometime this year. She has the better credit score (in the upper 600's), while my score is in the upper 500's. Our front end and back end debt ratio are well within range of a FHA loan however, I'm concerned that my credit history will be the limiting factor. 

About 12 months ago, I avoided foreclosure (because of a change in job status) but I've sinced made payments on time for the past 6-7 months. My home equity loan, which was originally automatically deducted and current, was placed in foreclosure status as well, and hence the payments stopped coming out. I paid the past due balance on that to get that current. Also because of my job status situation, my auto loan was consistently deliquent by 30 sometimes 60 days. I also had about 4 charge offs - 3 of which are now paid off and 1 which I'm on an active payment plan. With all of this, I have totals 24+ late payments on my report. 

How heavily does missed mortgage payments weigh on the loan process? How long should we wait before applying for a mortgage? (By the way, the mortgage is in my name only as my wife and I were not married when I originally purchased the house)

Thanks in advance...

[StartingOver10]

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@Anonymous wrote:

My wife and I would like to buy a house sometime this year. She has the better credit score (in the upper 600's), while my score is in the upper 500's. Our front end and back end debt ratio are well within range of a FHA loan however, I'm concerned that my credit history will be the limiting factor. 

About 12 months ago, I avoided foreclosure (because of a change in job status) but I've sinced made payments on time for the past 6-7 months. My home equity loan, which was originally automatically deducted and current, was placed in foreclosure status as well, and hence the payments stopped coming out. I paid the past due balance on that to get that current. Also because of my job status situation, my auto loan was consistently deliquent by 30 sometimes 60 days. I also had about 4 charge offs - 3 of which are now paid off and 1 which I'm on an active payment plan. With all of this, I have totals 24+ late payments on my report. 

How heavily does missed mortgage payments weigh on the loan process? How long should we wait before applying for a mortgage? (By the way, the mortgage is in my name only as my wife and I were not married when I originally purchased the house)

Thanks in advance...

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You need to have a min of 12 months with no lates for any of your loans including auto, mortgage and cc.

The missed mortgage payments hit your credit score hard, especially your FICO mortgage score.

[VALoanMaster]

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@Anonymous wrote:

My wife and I would like to buy a house sometime this year. She has the better credit score (in the upper 600's), while my score is in the upper 500's. Our front end and back end debt ratio are well within range of a FHA loan however, I'm concerned that my credit history will be the limiting factor. 

About 12 months ago, I avoided foreclosure (because of a change in job status) but I've sinced made payments on time for the past 6-7 months. My home equity loan, which was originally automatically deducted and current, was placed in foreclosure status as well, and hence the payments stopped coming out. I paid the past due balance on that to get that current. Also because of my job status situation, my auto loan was consistently deliquent by 30 sometimes 60 days. I also had about 4 charge offs - 3 of which are now paid off and 1 which I'm on an active payment plan. With all of this, I have totals 24+ late payments on my report. 

How heavily does missed mortgage payments weigh on the loan process? How long should we wait before applying for a mortgage? (By the way, the mortgage is in my name only as my wife and I were not married when I originally purchased the house)

Thanks in advance...

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Hi Effdebt,

Based on what you said in red above you're not eligible yet. Here's why. FHA requires 3 years from a foreclosure to be eligible. Now you didn't actually have a foreclosure but you did have 2 mortgages go late & here's where you hit the wall. Lenders will treat a 120 day late payment on a mortgage just like a foreclosure because that's when most lenders start the foreclosure process. 

Good luck.

[DallasLoanGuy]

you went thru a significant financial event...... lenders want to see 12 months of stability to make sure that you are now ok.

can you get a loan with recent lates?  yes.

but it is a long shot