Mortgage Loans

[westo12]

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.

Positives-Never Lates
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

Negatives

Late Payments

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.

KDs

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

1. Income.  Currently Approx $67k
2. Source of income.  Employment/Hourly + Court ordered child support, will get for 2 more years.
3. Monthly debt payments.  Currently is $580 (Goal is $500 at app time)
4. Employment W-2, Full time, currrently employed 3 years.
5. Assets/Reserves.  Savings/IRA $12k
6. Location.  California, Alameda County.
7. Property.  Single family house/Good condition
8. Value.  $225k-$275k.
9. Occupancy.  Primary residence
10. Transaction Type.  Purchase/Most likely FHA or FHA 203K

[Blackhawks_girl30]

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 =)

[westo12]

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! 

[jdirilo]

On a side note, my dad lives in Alameda County. Love it there!

[westo12]

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jdirilo wrote:

On a side note, my dad lives in Alameda County. Love it there!

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Me too.

[westo12]

Anybody with any experience in this area have an input? I sure could use it!

[westo12]

*any input, I meant.

[aussiesareforever]

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!

[westo12]

Thanks Aussie!

[DallasLoanGuy]

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.

letter format:

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.