be brutal

[Anonymous]

I live in Arkansas.  We are wanting to build a house.  I make 39K per year.  I have almost no debt.  210.00 per month on auto loan that will be paid off in about 14 months and that is it except for utilities.  My scores are EQ 656 TU 619 and EX 613.  I do have some lates on my report that are all over 2 years old.  I also have a small loan that I signed for back in 2002 that is showing charged off for a balance of $726.04.  I wll be paying that this friday and the bank has agreed to give me a letter showing I am in good standing with them and also said they will remove from my CR.   This should raise my score some but I am not going to even figure that in yet.  I also have some small accounts showing in collections but again all from over 2 years ago.    My wife's credit is a lot worse.  Her scores are 535, 541 and 591.  She makes good money (49k per year)  my question is, would I qualify for the loan on my own with my income?   Need to borrow around 90k.    Be brutally honest on what you think my chances are on my own.

[Anonymous]

I got 126K on my own income (43k). I think your income if sufficient. You need to do whatever you can to raise your scores. If you can get most, if not all of the bads removed, you're good to go.

[Anonymous]

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ttrk05 wrote:

I live in Arkansas.  We are wanting to build a house.  I make 39K per year.  I have almost no debt.  210.00 per month on auto loan that will be paid off in about 14 months and that is it except for utilities.  My scores are EQ 656 TU 619 and EX 613.  I do have some lates on my report that are all over 2 years old.  I also have a small loan that I signed for back in 2002 that is showing charged off for a balance of $726.04.  I wll be paying that this friday and the bank has agreed to give me a letter showing I am in good standing with them and also said they will remove from my CR.   This should raise my score some but I am not going to even figure that in yet.  I also have some small accounts showing in collections but again all from over 2 years ago.    My wife's credit is a lot worse.  Her scores are 535, 541 and 591.  She makes good money (49k per year)  my question is, would I qualify for the loan on my own with my income?   Need to borrow around 90k.    Be brutally honest on what you think my chances are on my own.

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Scores arn't the only thing.  Do you have a down payment?  Also right now you qualify for a fha loan because they care more about how you have paid your bills over the last 1-2 years than they do your credit score.  Also when your car loan gets to where  you only have 10 months left to pay on it, it wont count against your dti.  Since the bank is willing to take off the negative info for payment do it.  With a fha loan you might not have to pay back the other chargeoffs and paying them off will not increase your score and can actually lower it because it will update on your reports making it look like its a recent bad mark

[ShanetheMortgageMan]

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ttrk05 wrote:

I live in Arkansas.  We are wanting to build a house.

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Are you looking at getting a mortgage used to finance the construction of a home, or buy a home with a mortgage upon it's completion?

If you are looking to buy upon completion then I agree that FHA would be a very good loan program to look into, but if you are looking at getting a mortgage to finance construction then FHA doesn't do that (although FHA has a 203k rehab program that just falls short of building a home, if there is already a home you like and want to rip it down to studs/foundation and build it up again).  If you are looking to build a home from scratch then Fannie Mae's HomeStyle construction-to-perm loan program would probably be best for you.. it does require 5% down on the project costs, plus 2 months PITI in reserves.  Everyone else you've laid out (debt ratio & credit) looks fine though.

[Anonymous]

looking to build.   Own the land free and clear (appraised for 20k) and have 7k cash.  Need to borrow about 100k to build.  How do I apply through FannieMae?  Is there a list of lenders they have?

Thanks!!!!!!!!

[ShanetheMortgageMan]

You would need to apply with a Fannie Mae approved lender who is set up to do the HomeStyle program.  If you let me know what state you are in I can give you bank suggestions, we are also set up to do HomeStyle.

[Anonymous]

I live in arkansas.   Northwest part.  72601 zip code.   Do you do loans in arkansas?

[ShanetheMortgageMan]

We're about a month out from being set up in Arkansas.  In the meantime I'd try

M&T Mortgage Corporation (800) 557-0535 https://info.mandtbank.com/personal/mortgage/index.asp

Colonial Savings Bank   (800) 937-6001  http://www.cnmcs.com/