Established Contributor
thankfulheart
Posts: 619
Registered: ‎09-26-2011
(Hopefully) My Journey to Homeownership (new: 10/23)
[ Edited ]

I say "hopefully" because there are some "unique" pieces to my situation that we are trying to work around.  Long story short and drama-free, I moved myself and my kids  1,000 miles away from my marital home a few years back for an internship that became a real job.  I'm tired of paying a boatload of rent and utilities for where I am living and decided to try for a USDA Guaranteed loan September 2011 (when I foolishly thought my scores were in the low-600s).  I had a wake-up call at 568 and 586, discovered MyFICO and started to work on my credit.

 

I was able to get a bunch of junk off through GW letters and some help from HIPPO minus the PO, plus an AA. :smileywink: In the middle of the credit work, my EQ score went to around 638, so I felt safe to start looking at builders.  I found the houseplans that were perfect for us in the right neighborhood, plunked down $500 deposit, and signed on the dotted line in March 2012.  Continued hammering away until the only stuff left is consequences of poor decisions and I have to live with it.  Happily, my credit scores are now 715, 701, and 682, plenty good for USDA Guaranteed.

 

This is where it gets hairy.  My DTI ratios are fine unless everything goes against me in UW.  I'm on a mortgage on a marital home which was given to "ex" in a separation agreement. We are not divorcing.  I can only prove 4 months of payments from his personal account, they are asking for 12, only, we didn't KNOW it had to be 12 months to be excluded, besides, we only officially separated in December 2011.  I also receive child support in the separation agreement, but since it is not a divorce, not sure if they will count it.  Finally, I have student loans that are in the process of being consolidated (since early March, what the HECK is taking so long???) and put into the IBR plan which will help the DTI.

 

I was asked to submit so far:

2 months of bank statements along with explanations for all non-direct deposits over $100

2 months of retirement account

4 weeks of paystubs

Last 2 W-2s

Last 2 tax returns

Driver's License and SS Card

Copies of checks for the child support and promissory note on the marital home

Rental lease and copies of checks for the last year

LOE for why I'm not getting divorced and why I moved

LOE for any late payments on my credit report (2007 and some from early 2011, all over a year past)

 

Had a chat with the mortgage person today and she finished up my file as much as she could without the stinkin' student loan reporting correctly. That's the big piece we are waiting for. She is going to talk to the UW about the marital home mortgage and the child support to see what, if anything, can be done there. She did say we could NOT do a "settlement at closing" on the marital home which was something I was hoping for.  I have $5K currently tied up in earnest money on the new house and since I'm doing USDA, will get all of it back, so could easily pay off the other mortgage with it if I could do it that way.

 

So I continue to wait...

Starting Score: 10/1/2011 EQ 568 TU 593
Current Score: EQ 664 TU 700 EX 701 (FAKO)