topic Re: Home loan in Mortgage Loans

Home loan

Anonymous — Sun, 24 Feb 2013 07:28:49 GMT

Hi,

I am new to myFICO. I am trying to get a home loan and have a 710 FICO Score. However my husband has a lower score under 620. How bad will his score hurt me? His salary is also more than mine. We have paid everything down to a 0 balance. It is just taking time for it to recover. Any answers will be apperciated. Thanks in advance.

Gabrielle

Re: Home loan

Anonymous — Sun, 24 Feb 2013 09:24:28 GMT

Your husband likely will not qualify on the loan and you would have to qualify on solely your income and if you live in a community property state, his debts will count against your DTI.

What is hurting your husband's credit? What is your income and the home price you are looking at?

Re: Home loan

boomhower — Sun, 24 Feb 2013 16:46:39 GMT

If he's not on the loan it won't hurt at all. If he needs to be on the loan your looking at FHA at best and then need to really get his score up 20 points.

Re: Home loan

Anonymous — Sun, 24 Feb 2013 16:51:26 GMT

There are still a few Lenders approving 620 mid score.

You just have to find one that works in your state.

Re: Home loan

tooleman694 — Sun, 24 Feb 2013 16:53:50 GMT

The trip from 620 to 640 is very short. What is on his report? With a little time he can get there for sure.

Re: Home loan

Anonymous — Sun, 24 Feb 2013 17:04:17 GMT

He had a few accounts in collections while in college everything is paid and has 4 student loans right now totaling to 6980. Should we go ahead any pay them off how much will that helping his score?

Re: Home loan

Anonymous — Sun, 24 Feb 2013 17:05:08 GMT

We also just paid all of our credit cards down to a zero balance.

Re: Home loan

tooleman694 — Sun, 24 Feb 2013 17:15:14 GMT

What was your credit card util before you paid them off? That alone may do it.

Re: Home loan

Anonymous — Sun, 24 Feb 2013 17:16:07 GMT

About 1000 dollars

Re: Home loan

tooleman694 — Sun, 24 Feb 2013 17:26:32 GMT

What I mean was, what were the limits. You paid off 1000 dollars, what were your credit card limts at the time.

Re: Home loan

Anonymous — Sun, 24 Feb 2013 17:30:38 GMT

2000 credit limit

Re: Home loan

Anonymous — Sun, 24 Feb 2013 17:32:32 GMT

List the types of credit you have..

Example

Cap One CC - credit limit 1000 - payment due 0- balance 0- late payments 0

AMEX CC - credit limit 1000- payment due 0-balance 0- late payments 0

Chase CC - credit limit 1000- payment due 0- balance 0- late payments 0

student loans- balance 5000- payment due (deferred or payment) - balance 5000- late payments 0

Car loan- credit limit 25000- payment due 450- balance 15000- late payments 0

Collection - balance 500- 4 years old

BK- 2009

Maybe you can get other ideas of how to increase your scores if you give some type of break down of reports.

Re: Home loan

tooleman694 — Sun, 24 Feb 2013 17:42:56 GMT

you paid off 50 percent of your util which is very good. If you want to maximize the scores, go buy something on one of the cards and let it report. You want under 10 percent of your total limits reporting. So go buy some groceries on one card.

Re: Home loan

Anonymous — Sun, 24 Feb 2013 17:55:27 GMT

Cap one cc - 500 limit / 0 bal
Boa cc student - 500 limit / 0 bal 1 late 2011
Boa 123 rewards 1000 limit / 0 bal

Student loans all loans are in repayment status
1631.76 / 1 late payment - 50 a month
1549.76 / 1 late payment - 17.59 a month
2279.43 / 1 late payment - 27.09 a month
2066.39 / 1 late payment - 23.45 a month

Collections
89 - paid july 2011
277 - paid aug 2010
79 - paid july 2010
754 paid may 2011

He is 22 and we don't have any car loans.

Re: Home loan

Anonymous — Sun, 24 Feb 2013 17:58:04 GMT

The late payments on all accounts are about 1.5 years old also.

Re: Home loan

Anonymous — Sun, 24 Feb 2013 18:12:47 GMT

As suggested by Tooleman, use your BoA 123 rewards card and purchase something, I would buy something totaling $25 and let it report on your statement. Once statement comes out pay the $25 off so no interest charges. Repeat this process for best scoring opportunity month after month.

When do the collections fall off? Being paid is good in the UW's eyes but sadly usually does not help your credit scores. It is the collection itself that has the biggest impact.

Your lates are also still dinging your scores, I would try to send GW (GoodWill) letters, and possibly they may remove them. Will be hard with the school loans but possible.

I would also send GW letters to the collections and see if they would remove them earlier since you paid them already.

You can get examples of GW letters on the rebuilding board, and even get excellent advice on how to improve your scores.

Re: Home loan

Anonymous — Sun, 24 Feb 2013 18:24:30 GMT

Are you both joint on all the credit cards?

It just seems still like there is something else on his reports hurting his score to be sub 620. Those collections are over a year old and shouldn't be hurting his score that much. Is there anything else derogatory on his credit report such as a tax lien, judgement, or other public record? What are your husband's positive trade lines?

I still have not gotten an answer about how much you make gross without your husband's income and the home price you are looking at purchasing. You may be able to qualify on your own. For a $100K home, you would need to make at least $25K a year gross, and $50K a year gross for a $200K home (as an example).

Also, please visit the rebuilding forum here to learn how to write a GW (Goodwill letter). You will need to write a goodwill letter to the collection agency to get those collections removed. Also what is the Date of First Delinquency (DOFD) on all those collections? In other words, when were they first reported? It might be easier to wait for them to fall off if they are scheduled to delete soon.

While very few lenders are still approving sub 620 loans, it will become increasingly difficult to find them after June 1st as the FHA rules are changing and will require loans for those with sub 620 scores to be manually underwritten and a recommendation letter from a LO or Broker will be required. Even those who approve 620 loans can be hard to find. The industry standard is a 640 score. My lender required a 660 for FHA.

Lastly, how much do you have for a downpayment and when are you looking to purchase?

Re: Home loan

Anonymous — Sun, 24 Feb 2013 18:43:27 GMT

He doesn't have anything else on his report that we ran l. His only positive was that his accounts have been open for 4 years. The boa 123 and capital one are joint accounts.

We have about 12, 000 for a down payment without cleaning out our savings.

Last year he made 41, 000. I just got a job about 3 months ago my salary is 30, 000. The house price range we are looking at is 130, 000.

Re: Home loan

Anonymous — Sun, 24 Feb 2013 18:49:25 GMT

You can most likely qualify on your own with just your salary and downpayment right now. I had to get our home loan by myself. My husband did not qualify.

Re: Home loan

Anonymous — Sun, 24 Feb 2013 19:09:54 GMT

@Anonymous wrote:
You can most likely qualify on your own with just your salary and downpayment right now. I had to get our home loan by myself. My husband did not qualify.

Not on just becoming employed. She will most likely need her husbands employment history.

Truthfully they are excellent candidates for the NACA program