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Removing late payments for FHA approval

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chozyn1
Valued Member

Removing late payments for FHA approval

my husband and i are looking to buy a home by February 2012. we are looking for him to finance the loan in his name only as i have a ch7 bk on my credit only 1 year post. he have a couple of late payments (sporadic) from the last year due to an automobile accident/financial issue. the last late payment was reported for Jan 2011 but it may be removed after gw letter. as far as fha loans go, how long after the last late can he apply and get approved? his scores are close to 600 due to the lates, down from high 600's early last year.

 

we want to get him to a least 640 by jan 2012, is it possible? he has no credit card debt, the car payment he have will be paid off in january, and other than that he has a loan of about 2000 that can be paid with income taxes next yr, so no debt when applying (besides child support) just these late payments. oh, one account went 120 days late but its inaccurate, so im working on getting capital one to fix that one. any suggestions is appreciated.

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llecs
Moderator Emeritus

Re: Removing late payments for FHA approval

Keep sending GWs for the lates. If there was an underlying situation whereby you demonstrated a recovery w/ on-time payments, then throw a sentence or two about that into your GW.

 

Your DH has no CC debt. Does he have any open CC? If he does have CCs, then he may want to pull his FICO scores frequently to see where his credit is in relation to the cards. Ideally, for max points, you'd want all CCs to reflect $0 except for one and get that one to report a balance of under 9%. For some, getting it to report to 5% or 2% can make a difference in a few points here or there. You'd have to experiment to see where that sweet spot is. Yet others are dinged heavily for having all $0 balances.

 

I'd pay off at least the car or loan before the mortgage. You can always adjust your W-4 (if employed) to give more money now vs. an interest free loan to Uncle Sam. A bigger paycheck may also look more favorable to a lender.

 

 

 

 

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