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02-01-2013 12:04 PM - edited 02-04-2013 02:39 PM
My husband and I are just beginning the home buying process again after 1 year ago when we got 3 days till closing and were DENIED. All our credit cards are paid off, we have $20,000+ for down payment. DH score is 670 and mine WAS 660...that is until 1 week ago when a new collection from an old cable bill I had in 2010 (which I was NOT aware of) for $67 popped up on my credit report, showing on all 3. My score dropped down to 593!!!!!
I immediately paid it, but the damage was done. I called the cable company to see if they could remove it, asked the collections company if they could remove it, both said no.
So 2 questions.... #1, will my score go up now that it says "paid in full"? #2, when going for an FHA loan how bad will this new collection hurt us? I realize I'll have to wait now until my score goes back up......but I'm hoping in a few months it'll be over 620 and we can start the process.
UPDATE: After speaking to THREE different lenders, each one said having this new collection on my credit report will NOT hurt my chances of getting a loan, FHA or conventional! The only thing that is now a factor is my score.....I'm hoping I'll be able to get it back up. It's at 624 right now and I just have to get it up to 640 for FHA..... So THANK GOD we don't have to wait a year due to some stupid $67 bill!
02-01-2013 01:03 PM
This is probably gonna hold you back about a year, unless your other half could afford to take the loan out on his own.
This is a complete joke, a 67 dollar cable bill from 3 years ago stopping you from buying a house. This credit stuff is some complete bull crap sometimes I swear to god
02-01-2013 01:25 PM
02-01-2013 01:29 PM
Last year I got denied they day of closing.
We were gonna close in Augest but because my Wife had made a late payment in March I was denied. This was on a non purchasing spouse, she was not on the loan and they still denied me based on her credit.
When we went back into UW on the new house, one of the conditions was that we could not close till my Wifes late payment was one year old.
02-01-2013 01:42 PM
02-01-2013 01:47 PM
02-01-2013 01:51 PM
If you have a copy of the credit report
Post that collection, editing out personal info and we can take a look for violations. That is the easy way to get it to go bye bye.