Finally got an accepted offer on a house. My fiance and I are pre-qualified with Wells Fargo for $225,000. We're going with an 30 year fixed FHA Loan 3.5% down.
Combined savings of about $8000 growing $2000 per month, $7840 is going to the downpayment, seller is paying all closing cost. We're buying the house at 84% under value. Closing date should be Mid August.
We've both had the same job for over 4 years.
Her Fico: 765 DTI >10%
My Fico: 622 DTI >16%
Her credit is pretty much fine, she owes about $1400 on a credit card and that's it.
Mine is not so great, I owe about $1500 on credit cards and $5000 left on a leased car. I have 3 negative accounts.
1 - BofA Credit card debt bought by Midland Credit, original debt of $2,500, now balance says $4,490. (I can payoff at 50%)
2 - Debt of $2,200 to MBF Leasing, they bound me to an auto renewing contract for a credit card reader. (I've read really bad things about this company so i'm refraining from calling them)
Both debts are outside the SOL and will fall off the report next summer, so it's been about 6 years since the DOFD.
3 - Medical debt of $196 from March of 2010, basically i moved and they couldn't reach me, account went to a collection agency who is not accepting my Pay for Delete Letters. I will pay this off but would much rather have a Deletion.
Beyond the collections, I have 4 Credit Cards that I've been paying on Monthly for over 30 months. As well as the car payment for 18 months.
Our Loan officer said that he feels the only thing that may hold us back is the 2 large collections from 2005. He thinks I may need to pay them even though they are so old and outside SOL.
My question for the guru's and those who maybe in a simliar situation is, will the large collections hold me back in underwriting?
