Mortgage Loans

[ndro]

We are trying buy a home and below is our situation. Is there an option available out there for financing?

1. My credit score 615 and spouse score 650

2. I have few collections in the past and paid (settled) most of then except one (car repo) with $7000 outstanding.

3. Spouse's credit history is clear

4. House hold income is 200K per year

5. Did a short sale on our first home on 11/30/2010 (FHA loan)

6. Apart from $7000 car repo, no other debt. Paying $300 per month for car repo account.

Appreciate a quick response.

[tooleman694]

I think you need to wait 3 years to get another FHA loan. And you probably should get your score to atleast a 640.

I would bet the repo would need to be paid, but some banks may let it go.

You say your Spouses credit is clean? Does his report show the repo or short sell?

If not and his income is good, he could buy the home on his own.

[webhopper]

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ndro wrote:

We are trying buy a home and below is our situation. Is there an option available out there for financing?

1. My credit score 615 and spouse score 650

2. I have few collections in the past and paid (settled) most of then except one (car repo) with $7000 outstanding.

3. Spouse's credit history is clear

4. House hold income is 200K per year

5. Did a short sale on our first home on 11/30/2010 (FHA loan)

6. Apart from $7000 car repo, no other debt. Paying $300 per month for car repo account.

Appreciate a quick response.

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How long ago was the repo? Rule of thumb is 640 but some banks go as low as a 580 score if you're putting 20% down.

[ndro]

Thanks for a quick replay!

repo and short sale were not my wife's report as both were on my name alone. Her income is around 75K and the house we are looking for is around 550K.

[ndro]

I have only 20K in savings for the down payment. The short sale was on 11/30/2010 so its almost 2 year ago.

[webhopper]

Are you in a community property state?

[ndro]

I am in WA state....I am not sure about what do you mean by community state!

[tooleman694]

75k isnt gonna do it for a 500k loan. I think you gotta wait a year.

[tooleman694]

WA is a community state, so FHA is not an option.

Conventional is the only way to go if you don't want to wait another year.

[webhopper]

Hate to be a Debbie downer but here it is: She cant qualify for a 550k house on her income alone. You could probably buy "something" but not really what you want. I recommend that you open 2 secured credit cards like immediately. Then... continue paying off the repo. You may even get them to settle. In one year I bet you'll be in prime shape to get a 550k house... if the Fha limits in your area allow for that.