I am currently working on rebuilding my credit score before trying to obtain a mshda (down payment assistance) loan on top of an fha loan. My scores are 549/569/588 (exp, eqf, trans) I have an "open installment" (aka dte, utility) on exp & eqf which recently had a past due of 90 days with a balance of $570. My balance is now $0 and I plan on calling to have the negative items removed.
I have 3 open collections on one report (the same collections show as closed on the other 2 reports). The oc was medical but went to an agency. It is over 5 years old and each collection is under $300. Actually, the total is $797. I have only 1 collection on trans and it is for a $98 library fine. 4 years old. I have disputed in the past and do not intend to settle as long as these will not affect me being approved for my mortgage.
I also just received the OpenSky secured card with a deposit if $200. I intend only to use $60 (30%) for my internet bill and pay in full each month. How soon will I be ready to apply? I plan on paying $50 for the homeowner education certificate required for mshda. Please help!! I need to have a 620-640 asap! I have no judgements or bankruptcy. Late payments are what have killed my score but I'm hoping my $0 balance will get me some deletions. I have read others have had success with dte so I'm hopeful.
After everything falls into place who do I contact first? A mortgage lender? Do they apply for mshda or do I do that first? First time homebuyer in Michigan. 4 years verifiable income & 3 years rental history at same address.
Also, DTE account more than 3 years old. Avg. age of accounts is more than 4 years. I know old accounts are good as well as mixed credit which is why I got the OpenSky card. It seems like all these things happening simultaneously will make my score higher sooner. Am I wrong?