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Want to build a home in 2012!! HELP!

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Want to build a home in 2012!! HELP!

I have had a lot of credit issues in the past. A foreclosure (12/2008), several charged off CCs, and a couple of collections that have now popped up. My current (2/2012) Equifax FICO (from this site) is 620. My wife's is 559. Income is $80K combined. Our  current credit situation is that we have 2 vehicles in both of our names. One will be paid off 1/2013. We each have a credit card. I have student loans (current) in my name. We will be paying our credit cards down to less than 9% this month. This should help maybe 20-40 points each according to the FICO simulator. When both of our FICOs reach at least 620 (640 for me at least), we want to have a home built. It will take 5-6 months to build the house. The cost is around $185k.


FHA requirements are changing 4/1/12 to require all COLLECTIONS over $1k to be paid or on a payment plan with 3 mos history.My question is this: Only some of our charged off accounts have turned into actual collections....Will underwriters require charged off accounts to be paid as well? I am a little shaky on the differences for underwriting purposes. Alsp our 2nd mortgage was charged off during the foreclosure...Will that be a requirement too? They never came after us for payment that I can remember....Any help is appreciated! We are willing to settle/pay with all creditors if it gets us closer to our dream home!

Starting Score: 620
Current Score: 649EQ/640EX/642TU
Goal Score: 700

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