05-17-2012 01:21 PM - edited 05-17-2012 01:27 PM
My husband and I would like to buy a house late this year or early next year, but it seems like there are a lot of things on your credit report that the underwriters have issues with. I am currently working on getting our cc's paid below 9% so that will help increase our score enough that we hope to qualify. I am just wondering if I will have any issues with anything listed on the actual report. Here is what we have:
Chapter 7 Bankruptcy in July 2010 (we know it must be two years out before qualifying)
Paid State Tax Lien of $425 in 2011
Judgement that was filed before fiing bankruptcy, but debt was included in bankruptcy $6,359
Two Medical collections for $135 and $465 that are paid (trying to get the $135 as PFD, but if they won't I'll just pay it)
Timeshare sent to collection $6,913, making payments monthly since 02/12
3 credit cards for me
2 credit cards for him
2 vehicle payments
No late payments or any other issues with any open accounts.
We have quite a few accounts showing lates in the past, but all were included in BK.
I appreciate any help as we are trying to clean up what we can. Thanks!
05-17-2012 01:29 PM - edited 05-17-2012 01:30 PM
05-17-2012 01:34 PM
Thanks...I thought, from what I read, that the new guidelines state that any collection accounts over $1,000 must be PIF or on a verifiable payment plan? Can anyone confirm that?
05-17-2012 01:37 PM - edited 05-17-2012 01:38 PM
Here you go.. you should be fine as long as you have made three or more payments.
According to FHA mortgagee letter 2012-3, there are important revisions to the instructions for FHA lenders found in HUD 4155.1 .4C.2.E. which formerly stated: “FHA does not require that collection accounts be paid off as a condition of mortgage approval. However, court-ordered judgments must be paid off before the mortgage loan is eligible for FHA insurance endorsement.”
Potential FHA loan borrowers who have outstanding debts sent to a collection agency are directly affected by recent changes in that old rule. The new guidance is as follows: “If the total outstanding balance of all collection accounts is equal to or greater than $1,000 the borrower must resolve the accounts (e.g. entered into payment arrangements with minimum three months verified payments- paid as agreed) or paid in full at the time of, or prior to closing.”
05-18-2012 09:00 AM
One last question about FHA qualifications...I know they require at least two years on the job. I will have been at my job for over 6 years by the time we're ready to buy, but my husband will only have been at his job for about 8-10 months and had two other jobs previous to that. So by the time we're ready to buy he'll have had 3 different jobs in 2 years. They are all in the same industry, but he was laid off of his last one and is now only working part-time so his pay is less. Even with my good job stability (I also earn 3.5 times what he does), will his job instability keep us from qualifying? Just hate to get my hopes up thinking we're okay on credit and then have that hit us. TIA!
05-18-2012 09:19 AM
You will be fine! Especially if it is in the same industry!
05-18-2012 09:44 AM
I agree .. You should be fine. The biggest thing in your favor is it is in the same industry. My husband had the same thing, but luckily by the time we applied for our loan he had just hit his 2 year mark with the same company
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.