Credit. Scores TU627, EQ634, EX605 – No plans to app until 04/13, when most recent late hits 1 yr mark. Plan in meantime is to pay down debt (approx 62% util) to increase scores, as well as have some derogs removed.
Type / Opened / Bal / Limit / Util
CC - 06/2008 - $2689 / $3000 / 89%
CC - 10/2008 - $620 / $809/ 76%
CC - 06/2009 - $10 / $320 / 1%
CC - 11/2010 - $6 / $300 / 2%
CC - 05/2012 - $0 / $300 / 0%
CC - 09/2012 - $0 / $500 / 0%
CC - 09/2012 - $0 / $200 / 0%
Loan - 05/2012 - $2936 / $3103 / 94%
Loan - 06/2008 - $6k - closed/never late/pd in full
CC - 10/2008 - $0 closed/never late/pd in full
CC - 06/2008 - $0 closed/never late/pd in full
CC - 10/2008- $0 closed/never late/pd in full
Loan - 05/2003 - $1k - closed/never late/pd in full
Santander Auto Loan – Opened 04/2010 Bal $13780 – Five (5) 30 day lates in 2 yrs, 03/12, 11/11, 10/11, 9/11, 6/11. Reporting Current/Paying as agreed now.
Paid Collection –$300 – Date added 09/11 - PFD accepted/removed est 10/18/12
Paid Collection – $300 – Date added 02/11 - PFD accepted to be removed 10/18/12
Unpaid Collection – Utilities- $331 Send PFD. Date added 02/11
Unpaid Collection – Medical $312 – Date added 09/10
Unpaid Collection – Utilities $195 – Send pfd – Date added 08/10
Unpaid Collection – Medical $260 – Send PFD Date added 04/07
Paid Chargeoff - $0 – DOFD 12/06
Unpaid Chargeoff - $0 - DOFD 01/06
I'm not an expert, but just from my experience that recent late payment is most likely going to be automatic denial for FHA loan. In my opinion I would take the next 6 months to pay down the balances on your credit cards, this would give you a score bump. Hopefully the collections will accept your PFD =) I started 2 years ago with a 580 score, 16 collections, 90% utilization on my credit cards. I'm now at 3% utilization, 2 paid collections that won't budge with goodwills, and a 712 score. I say work at it for 6 months and you will be in a much better position for approval! Good luck =)
I did say that I wasn't planning on app'ing until my most recent late hit the 1 yr mark, which is an FHA requirement..
And your story is exactly where I expect to be this time next year as well!
On a side note, my dad lives in Alameda County. Love it there!
I think you would have to be prepared to write LOE for your lates and collections. You have quite a few and your underwriter will definitely have questions about those.
The price of the house you are looking for also appears to be a little high for your income.
Your plan for paying down your debt and waiting until your lates are older sounds great. Good luck!
i dont know anything about taxes/insurance there.... so i cannot comment on det ratios.
but when the lates are 1yr old, you will be fine.
i would wnt a good letter explaining(loe) the past derogatories.
1. what happened?
2. how did you deal with it?
3. what steps have you taken to assure it doesnt happen again.
the loe will want to match the credit report.