Will I qualify for an FHA loan?

[Anonymous]

Hello,

I am new to the forum, and I have read many posts on the topic, but none touched on my situation, so I hope you all will help me out.

Will I qualify for an FHA loan in May 2012?

Job 1: $55K

Job 2: $5-10K (commission job & less than 1 yr)

Identity Guard Credit Report: Equifax-640 Experian-668 TransUnion-606

Cap1 - Secured $0/$200 (opened in Oct 2011)

401K - $5K

Paid off my car last month after 6 yr loan.  Terrible payment history until Mar 2011.  Payed as agreed from March 11 - Jan 12

Student Loans in good standing - deferred, but possibly reporting as "pays as agrees"

No other open lines.

A few very old charge-offs and collect accounts.  Was told not to pay them off before obtaining the mortgage loan, because score could drop. True?

Went through credit counseling and disputed items that fell off in 2010.

Not sure if I should open 2 additional credit lines to have 3 open lines or not.

I have had a couple of rough patches, since I started rebuilding in late 2010, so I do not have a perfect payment history on my alternative lines (utilities, cell, etc). 

Any information would be greatly appreciated.

[visorboy1974]

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@Anonymous wrote:

Hello,

I am new to the forum, and I have read many posts on the topic, but none touched on my situation, so I hope you all will help me out.

Will I qualify for an FHA loan in May 2012?

Job 1: $55K

Job 2: $5-10K (commission job & less than 1 yr)

Identity Guard Credit Report: Equifax-640 Experian-668 TransUnion-606

Cap1 - Secured $0/$200 (opened in Oct 2011)

401K - $5K

Paid off my car last month after 6 yr loan.  Terrible payment history until Mar 2011.  Payed as agreed from March 11 - Jan 12

Student Loans in good standing - deferred, but possibly reporting as "pays as agrees"

No other open lines.

A few very old charge-offs and collect accounts.  Was told not to pay them off before obtaining the mortgage loan, because score could drop. True?

Went through credit counseling and disputed items that fell off in 2010.

Not sure if I should open 2 additional credit lines to have 3 open lines or not.

I have had a couple of rough patches, since I started rebuilding in late 2010, so I do not have a perfect payment history on my alternative lines (utilities, cell, etc). 

Any information would be greatly appreciated.

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Do you have any FICO scores?  The Identity Guard scores won't translate into FICOs.  

[Anonymous]

Mortgage company ran it in Sept 2011

EQ 585  EX 663  TU 639

Should have increased since cap1 opened in oct

[Anonymous]

I received my FICO scores today.

EQ 633

TU 655

[Anonymous]

It is likely you will. When I bought my house in October they said they wanted to see 620's or higher. You seem to meet that. I can't speak for the rest of your file.

[Anonymous]

Thanks Mahiven.  I have been told that the requirements changed and that it's now 640 versus 620.  If my EX score is high, then I will feel better about it.

[Anonymous]

You can qualify for an FHA with a 620 but you can get better rates at 640.

[Anonymous]

I see. Thanks for the clarity.

[Anonymous]

HELP!!!  Just received a notification from myFico Credit watch that my EQ dropped from 633 to 615.  I paid off my car in Jan 2012 and they "closed" the account due to a $0 balance.  Is that normal?  I was already on the edge trying to get approved for an FHA loan in May 2012.  How can I get it back up by May? 

[Anonymous]

Oh, well.. yes, I guess you should've posted that you were about to pay that off and someone could've told you that might happen. Do you have any credit card balances that you can pay down? That might offset the difference. Also, unless you're getting those scores from the bank, they're probably not accurate. They will do a "mortgage enhanced" credit report, and those might have your scores quite a bit higher. Honestly, I would go talk to a lender and start from there.