What else do I need to do??

[Mommyto2boys]

Hello,

I have been lurking here for some time and have successfully paid down my credit card balances. I am wondering what else I need to do in order to get approved for a home. I currently own a teeny tiny home (FHA Loan) and am looking to purchase something a little bigger. I have raised my Experian score about 50 points in the past 6 months but the Equifax one isn’t budging. Can you take a look and let me know what I can do to get on the right track? I would like to purchase in the next year. Is that possible or am I dreaming? Let me know if you need any other info.  I tried to provide everything requested in Shane's sticky thread at the top of the board. Thanks in advance for all of your help/guidance. It is greatly appreciated!

CREDIT -

Experian - 645

Equifax - 570

TU - ?

I currently have multiple late pays. The most recent is 1 year and 1 month ago and I am sending out GW letters this week. I also have a few paid medical collections from 2004 and 1 unpaid collection from dell from 2004.

INCOME -

Gross Income = $59k / salary (usually get $2k in bonuses during the year)

Work History - 4 years at current company (9 years in industry)

MONTHLY DEBT PAYMENTS -

Car Payment 1 - $350 (pay off date is within 10 months)

Car Payment 2 - $360 (pay off date is 2010)

Credit Card 1 - $12 (balance $50 - total credit available $3k)

Student Loan - $50

CASH/ASSETS -

401k - 9k

Savings/Checking - 5k

LOCATION -

Collin County, Texas

PROPERTY -

Single Family Home - Primary Residence

VALUE -

100k - 150k

[DallasLoanGuy]

Keep saving money. Cut where you can.

 How soon are you looking to buy?

any equity in the present home? are you listing it to sell?

[Mommyto2boys]

Thanks for responding so quickly.

We plan to sell our current home. We could get what we owe on it but not much more.  We have considered keeping it and renting it out because there is not any rental property around us and we would have good luck keeping it rented. Is that an option? 

My husband makes a higher income than I do but his scores are in the 500's.  Would it be better to try and qualify with both incomes even though his credit scores are lower than mine? His scores are low because he doesn't have any active credit.  We tried to get a secured BOA card to build his credit but they denied him. Any other ideas on how we can increase his scores?

We would like to get a house at some point in 2009.  We are currently on a budget (Dave Ramsey) and are putting about $1500 in savings monthly.

I really really really appreciate your help. Any pointers you can give me would be greatly appreciated. Are you in the DFW area?

[DallasLoanGuy]

500 scores will hurt a lot.

can you qualify on just your income?

 try another place for secured visa. maybe a credit union.

 yes, i live in plano and the company is in north dallas

[WannaHouse]

You could try Orchard Bank for a secured card as well. You can add your husband as a authorized user on your CC as well. Both should help his score some.

[Anonymous]

Regarding the paid medical collections, search for "HIPAA".  There's a documented process for getting these removed.