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01-19-2013 08:56 AM
I need some help so I'm just going to throw down everything I can...
I have good to excellent credit with no derogs, see signature. 2 years at same employer only 32k income. My DH has 1-2 collections on all 3 reports (currently in process of PFD). is an AU on 2 cc's and is 10 months into rehab on 7k of student loans that are due to consolidate February.
For us to get a mortgage both our income and scores are considered... Middle score of highest income and/or lowest middle score. Chime in if I'm incorrect, I'm new to all this. So this means... No matter what my score and good credit history, my DH's score is the qualifying score for the mortgage. Is this correct??
Do we even have a chance to pre-approval for an FHA anytime soon? Am waiting to pull DH's fico till February (several of the collections will be removed and the remainder will be paid to $0) this will give us a better stand point. the scores are in the low 600 currently.
Im just overwhelmed with the hustle, and all this time just thought my credit would be all we needed and I'd just get the loan in my name but would only qualify for around 125k. Maybe im thinking about this way too much.... We then decided it would be nicer to have both of us on the loan to qualify us for a larger mortgage. But I can't find anything that will have him qualify without a good long standing credit history. (Underwriting would be needed) only 8 months utility bill, 10 months student rehab if that's counted and a 1-2 yr lease he can use In his name for history. Would this be enough?
Please help... I really don't know. As much feedback I can gewot hat simplifies this for me will really help. It now just seems like forest for the trees.
01-19-2013 09:28 AM
01-19-2013 10:11 AM
01-19-2013 11:03 AM
01-19-2013 11:57 AM
You're welcome. Those are excellent cards for him to be an AU on. 30% or lower is good utility. 0-15% is excellent. So 30% is not bad. Typically folks here have seen maximum score increases when they pay all but one card down to zero and leave a very small balance (<10%) on one card. So there is a good chunk of points to be gained here. And the high limit on one of your cards is really helping him.
So it sounds to me like it is just the 2 additional months of good payment history on the student loans, credit utilization, and the two collections holding him back. I would get the credit utilization down to see where that gets his score and then continue paying the student loans on time. Once the collections are PFD'd, that will really boost his score and the collections are so old, that they won't automatically disqualify him.
Is the 600 score his fico score from site?
I think he is in good shape and his score could definitely get him qualified in April. If you both focus on the items that need attention. It sounds like there is a good plan in place to get his scores satisfactory. :-)
That's great to hear MovingForward-2012,
I've just been expecting too much too soon. The last reports pulled are fico's in August EQ 631 and TU 613. Just been working on it the last couple of weeks so will pull the 2 fico's mid Feb. when amex statements cut and the dust has settled with the payments reporting.
I just really wanted to start moving now because we found a house we don't want to miss out on. It's all good! It's been on the market for 6 months, will see. There's always more and the interest rates aren't going anywhere anytime soon.
Really appreciate the help. It's nice to get the positive feedback.
01-19-2013 03:29 PM
01-19-2013 11:14 PM
Just another reminder....
Paying off collections has no impact on your credit scores, unless the collection is removed.
If the collection agency isnt willing to do a PFD, paying off the collection can actually cause another negative ding to your credit reports and also cause your reports to have a current negative item reporting. Which in term can possibly have an impact of waiting 12 additional months for approval.
If you are willing to pay the collection, and if required by UW for approval, you can pay the collection at closing. You can still negotiate a payment as long as you get something in writing from the CA.
I will second the motion to pay your UTIL down and if you can acheive lowering your UTIL to <9% you may see a bigger score increase then expected. YMMV.. But I would start here for scoring purposes.
01-20-2013 09:32 AM - edited 01-20-2013 09:34 AM
He is really close! Of course we don't know what the third score is until the lender pulls it. If the third score is higher than 613, you know either the third score and/or the 639 needs attention. If the third score is lower than 613, then the 613 and 639 are the scores that need work. Just stick with the plan and you should both qualify soon. Best of luck to you. I hope the house is still available when you are able to qualify too. If not, there is usually a couple one really likes.
Have you contacted a realtor to inquire about the property in terms of if anyone has put an offer in and what the seller's timetable is?
we haven't contacted the realtor about the property just yet, we don't really feel like we've been in a position too. I did request info this morning, should get some sort of a response next week. (You know they're motivated to respond to any interest in properties in this market)
i hope the house is still available too. And thanks! We've been pretty stressed and now feel pretty confident in our projected 3 month plan. I'll keep you posted on our progress. I'm still pretty determined to achieve this goal sooner. In fact his scores will go up soon. I had a second PFD on the 16th off the reports in 48hrs so that'll help. :-)
01-20-2013 10:09 AM
01-20-2013 10:35 AM
Some lenders only require 580 for FHA. Call around to smaller, local banks in your area and see if you can find one. My DH midscore was 613 in Nov and we are closing in 8 days. You might find a lender willing to take you on now. I do know that you cannot have any lates in the last 12 months. Good luck! You have a great plan in place and it seems like you are doing everything right.