Mortgage with-in 6 months?Help

[Anonymous]

Hi there,

My husband and I are trying our best to fix his credit and get approved for a home loan with-in 6 months! We paid down all credit card balance 3 months ago. Witch left his scores at 590 , 626, 723. We applied for a loan and got shot down because he has collections from a nasty divorce 5+ years ago. These collections are going to fall off in a yr or 2. We were told by the lender that we should pay them and wait 90 days for his score to go back up. But he could not make any promises that we would even be approved if they were paid do not want to spent 10,000 to be told oh sorry you can't get the loan.Btw I am a stay at home mom my credit is good but I have no income to show. And Our income is not a problem we have a household income of $120,000 a yr .We also have $65,000 down payment with is 20%.I just need to know the best/quickest way to go about this situation. I have been told so many different things we are so lost!!!! HELP

[MzKoli]

Paying the collection won't improve scores. You can try pfds. 5-6 yr old collections having to be paid is also lender specific and also probably depends on SOL and amounts I'd reach out to several other brokers and LOs and tell them the situation (without letting them pull credit) to see what others say.

[Anonymous]

yes i think PFD is the only way. There are 5 collections. I know SOL are up on all of them as of now. So i guess i should contact the someother LO's and see if they say the same i will work on my PFD letters!!

[MzKoli]

Have you spoken to more than one LO and/or broker? Its possible another lender will have a different requirement. Is this conventional or gov backed?

[MzKoli]

If you hadn't already I'd suggest posting in the mortgage forum as there are folks in the industry that posted there regularly but not sure if they venture over here.

[DaBears]

$120K income from your husband and $65K to put down and they turned you down???? 55K will be the finance.....Really strange!!!!!

[Leadberry]

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@DaBears wrote:

$120K income from your husband and $65K to put down and they turned you down???? 55K will be the finance.....Really strange!!!!!

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She stated the $65k was a down payment of 20%.  That would suggest a principal loan amount of $260,000.

[Anonymous]

Thank you everone for the response. We have spoke to one lender, and this is our first home loan so FHA. We didn't want more people running my hubbys credit do to the scores.