cancel
Showing results for 
Search instead for 
Did you mean: 

Will I Qualify?

tag
Anonymous
Not applicable

Will I Qualify?

So it's my turn up at bat. I'm looking at homes in the $200 - $250k range.

 

I have $20k to use as a downpayment (10k savings + 10k from IRA).

 

My mortgage FICOs are 628, 628, and 688.

 

About 9k in available credit, just over 15% utilization (will be down to under 10% the next time accounts report).

 

Monthly debt payments of $900 (CC, Student loans, and personal loans)

Gross montly income of $8500 (W2).

Assets - 2 cars, could dump one for about $2k if desperate, $3.5k if I took my time with the sale.

$500 in a trading account (currently tied up in stock but selling and pulling the cash is not an issue).

 

Bad items:

- 1 paid collections

- 1 satisfied judgment (from the collections account)

- 2 closed accounts w/ balances (currently being paid down, also reporting about 2.3k of my available credit)

- 30-90 day lates on 5 accounts starting 9/2013 ending 12/2013 (I'd started a new job late 2012 borrowing money from my parents. The plan was to pay them back a year later. Summer 2013 I needed to move - new landlord wanted 1st month, last 2 months, + security deposit then a month later my parents needed immediate repayment. I stupidly used PDLs for a few months before it became unsustainable and I missed CC payments in order to get out from under the PDLs which ultimately resulted in 3 accounts getting close - one which ended up going to collections).

 

The collection was paid 11/2014, shows as satisfied 1/2015.

 

Only 3 accounts report a balance, the 2 closed (both at 25% of their limits) and my CreditOne card which apparently reports the same day they charge the annual fee (which is the only balance on the card). I'm going to try and game them by prepaying it for the next reporting period. . .

I suspect my scores will budge slightly when my utilization goes down but I'm guessing 12 points is too much to ask. My time frame is 6/2015 to apply.

Another question - a PFD is out of the question for the collections and I'm unlikely to convince them to spend lawyer time on vacating the judgment. Do you guys think there is any chance I could convince the closed accounts w/ a balance to delete the accounts in exchange for a lump sum of the remaining amounts due? Or would that be pointless and just reduce my AAoA and scores?

Message 1 of 9
8 REPLIES 8
Anonymous
Not applicable

Re: Will I Qualify?


@Anonymous wrote:

So it's my turn up at bat. I'm looking at homes in the $200 - $250k range.

 

I have $20k to use as a downpayment (10k savings + 10k from IRA).

 

My mortgage FICOs are 628, 628, and 688.

 

About 9k in available credit, just over 15% utilization (will be down to under 10% the next time accounts report).

 

Monthly debt payments of $900 (CC, Student loans, and personal loans)

Gross montly income of $8500 (W2).

Assets - 2 cars, could dump one for about $2k if desperate, $3.5k if I took my time with the sale.

$500 in a trading account (currently tied up in stock but selling and pulling the cash is not an issue).

 

Bad items:

- 1 paid collections

- 1 satisfied judgment (from the collections account)

- 2 closed accounts w/ balances (currently being paid down, also reporting about 2.3k of my available credit)

- 30-90 day lates on 5 accounts starting 9/2013 ending 12/2013 (I'd started a new job late 2012 borrowing money from my parents. The plan was to pay them back a year later. Summer 2013 I needed to move - new landlord wanted 1st month, last 2 months, + security deposit then a month later my parents needed immediate repayment. I stupidly used PDLs for a few months before it became unsustainable and I missed CC payments in order to get out from under the PDLs which ultimately resulted in 3 accounts getting close - one which ended up going to collections).

 

The collection was paid 11/2014, shows as satisfied 1/2015.

 

Only 3 accounts report a balance, the 2 closed (both at 25% of their limits) and my CreditOne card which apparently reports the same day they charge the annual fee (which is the only balance on the card). I'm going to try and game them by prepaying it for the next reporting period. . .

I suspect my scores will budge slightly when my utilization goes down but I'm guessing 12 points is too much to ask. My time frame is 6/2015 to apply.

Another question - a PFD is out of the question for the collections and I'm unlikely to convince them to spend lawyer time on vacating the judgment. Do you guys think there is any chance I could convince the closed accounts w/ a balance to delete the accounts in exchange for a lump sum of the remaining amounts due? Or would that be pointless and just reduce my AAoA and scores?


 

 

Hmm, any idea why there's that big a difference between your high and low FICO scores.

Perhaps if you figure out what's reporting differently between the low two bureaus and the third, you could fix/correct the issue and see those other two move up. That might be an easy way to get 12+ points!

Message 2 of 9
StartingOver10
Moderator Emerita

Re: Will I Qualify?

I am not exactly sure what you mean by this statement:

 

Only 3 accounts report a balance, the 2 closed (both at 25% of their limits) and my CreditOne card which apparently reports the same day they charge the annual fee (which is the only balance on the card). I'm going to try and game them by prepaying it for the next reporting period. .

 

Does this mean that you only have one open account and the other two are closed with balances reporting? If so, that could be a big reason your score is where it is.  What are the three TL's and their credit limits and their balances? That might shed some light.

Message 3 of 9
Anonymous
Not applicable

Re: Will I Qualify?


@Anonymous wrote:

Hmm, any idea why there's that big a difference between your high and low FICO scores.

Perhaps if you figure out what's reporting differently between the low two bureaus and the third, you could fix/correct the issue and see those other two move up. That might be an easy way to get 12+ points!


Apparently, my Experian report still has an old Amex account from 2003. Based on the 3B details, that's the only difference. Perhaps getting added as an AU on a good account with similar age is all I need for that improvement!

Message 4 of 9
Anonymous
Not applicable

Re: Will I Qualify?


@StartingOver10 wrote:

I am not exactly sure what you mean by this statement:

 

Only 3 accounts report a balance, the 2 closed (both at 25% of their limits) and my CreditOne card which apparently reports the same day they charge the annual fee (which is the only balance on the card). I'm going to try and game them by prepaying it for the next reporting period. .

 

Does this mean that you only have one open account and the other two are closed with balances reporting? If so, that could be a big reason your score is where it is.  What are the three TL's and their credit limits and their balances? That might shed some light.


No. I have 11 CC accounts. 9 open, 2 closed. Of those 11 accounts, 3 show a balance, the 2 closed and 1 of the open ones. Total credit limit is about $9k (includes the closed accounts which report both a balance and credit limit).

Accounts with balances:

1. CreditOne Bank, $8.25, limit $650

2. BoA, $500, limit $2000

3. Jcp, $440, limit $1350 (oops. . that's not 25%!)

Sorry for the confusion.

Message 5 of 9
Anonymous
Not applicable

Re: Will I Qualify?

Hmm, maybe the AU idea wont work. EX shows AAoA at 6yrs, oldest 12.5 years (the Amex). The others show AAoA of 5 years, oldest 11years. I'm not sure I know anyone with both that much mutual trust and old enough account to make it work. Perhaps I can focus on trying to get a couple lates removed. . .

Message 6 of 9
Anonymous
Not applicable

Re: Will I Qualify?

So, will I qualify for FHA as-is? My concern is that my credit score isn't high enough given the past history.

Message 7 of 9
StartingOver10
Moderator Emerita

Re: Will I Qualify?

If those are your mortgage scores, then you have a mid-score of 623 and would qualify for regular rates with a lender that has a minimum of 620 mid-score requirment for FHA (many do). 

 

If you are able to pay down your utilization your score should pop up nicely.

Message 8 of 9
Anonymous
Not applicable

Re: Will I Qualify?

Thanks, I was worried because I see 640 a lot as a minimum score (some site's mortgage calculators bottom out at 640) and in forum discussions.

I suppose it's a bit irrational but after having major credit scew ups in the past, it is difficult to really be secure that I'm on the right path and a bit scary moving forward.

I think almost as important as the advice and information I've learned from reading these forums is the encouragement I've gotten from reading about the experience of others and the community spirit here.

Message 9 of 9
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.