topic Re: Do I Qualify For A Mortgage in Mortgage Loans

Do I Qualify For A Mortgage

Anonymous — Wed, 23 Mar 2016 08:00:49 GMT

Hello All,

I'm new to this forum and I have been working on my credit for the past 6 months. I have been reading through the forums for the last two months and I have learned alot!! Could y'all please look at my profile and advise. My starting scores were in the low 500's 3 months ago. I just need more ideas on what I can do to improve.

Mortgage Credit Scores:

What are your fico MORTGAGE credit scores for each mortgage applicant? MY MORTGAGE SCORES ARE 601 TU, 603 EQ, 651 EX.

2. Credit Negatives: If you have any, what negatives are on your credit reports. For each negative, please provide:

Type: (collections, charge-offs, late payments[housing/installment/revolving], short sales, deed in lieu, BK's[7/13], judgments, tax liens, back owed child support, student loan, other.) I HAVE A TOTAL OF 5 ACCOUNTS ON MY CREDIT REPORT. 1 COLLECTION IT ASSIGNED & PAID 9/12 (MIDLAND FUNDING). 2 CHARGE OFF...BOTH PAID. CAPITAL ONE CHARGE FROM 8/14 AND BILL PAID IN FULL 8/15....JCPENNEY CHARGE OFF IS FROM 9/2012 IT WAS SOLD TO MIDLAND FUNDING WHOM I PAID.
I HAVE 2 OPEN ACCOUNTS: CAPITAL ONE $300 LIMIT (3 30DAY LATES BACK IN 2014); THIS ACCOUNT WAS OPEN 11/2010; FINGERHUT ACCOUNT OPENED 1/2016 $300 LIMIT (NO LATES)
MY CURRENT CREDIT CARD UTILIZATION IS 7%

Miscellaneous:

I HAVE A THIN CREDIT FILE. 2 OPEN ACCOUNTS. I HAVE 2 YEARS OF VERIFABLE RENT HISTORY. (the lender I'm interested in applying with accepts non-traditional credit)

3. Gross Income. 34K

4. Source of INCOME. I'M AN HOURLY EMPLOYEE. I HAVE BEEN EMPLOYEED FOR THE SAME COMPANY FOR 4 YEARS.

5. Monthly debt payments.

I HAVE NO DEBT OUTSIDE OF MY 2 CREDIT CARDS. THE MINIMUM MONTLY BALANCE ON BOTH TOGETHER IS $40
MY ONLY OTHER MONTHLY BILLS INCLUDE MY RENT, ULTILITIES, AND CELLPHONE.

6. Employment (for those who are employed).

Type of employment: W'2....FULL-TIME....
How long......4 YRS

7. Assets/Reserves. This is to determine how much you could potentially have as a down payment and also as reserves to help qualify (for example if your debt to income ratio is high this could help qualify you anyway).

Savings: 4K
Checking: 1K
401k: I'M NOT SURE

8. Location: GA...I WOULD LOOOOVE TO APPLY FOR USDA GUARANTEE...BUT BASED OFF MY SCORE I FEEL LIKE I HAVE TO GO THE FHA ROUTE... I WANTED TO APPLY THIS SPRING...

9. Property Description:

I'M INTERESTED IN A SINGLE FAMILY HOME...NO MORE THAN 140K

12. Transaction Type. PURCHASE

Re: Do I Qualify For A Mortgage

Anonymous — Thu, 24 Mar 2016 01:14:25 GMT

It sounds like you'd be ok. I'm not sure about using non-traditional credit if you already have 2 accounts and some old derogatory items, but it sounds good overall. I think USDA will allow down to a 550 mid score, but I've heard its very tough if you have less than a 580 (meaning the credit history needs to be better with number of current established accounts with good payment history). Based on your scores you'd probably be ok for USDA.

Re: Do I Qualify For A Mortgage

Imperfectfuture — Thu, 24 Mar 2016 16:50:21 GMT

USDA kinda wants 640 mid score.

Re: Do I Qualify For A Mortgage

Anonymous — Wed, 30 Mar 2016 03:32:56 GMT

Yeah that's what I've been told. I'm shooting for FHA now due to that. Thanks.

Re: Do I Qualify For A Mortgage

Anonymous — Wed, 30 Mar 2016 03:35:21 GMT

Update: Apply for pre-approval right now. LO said my mortgage scores are EQ 608, TU 616, and EX 651.

Re: Do I Qualify For A Mortgage

Anonymous — Wed, 30 Mar 2016 08:04:47 GMT

If that paid charge off that was paid in August of last year is the most recent late/negative thing on your reports, you're gonna get a tad bit of a bump in score when it's over a year old & you have that all important "one year of positive history"

Re: Do I Qualify For A Mortgage

Anonymous — Wed, 30 Mar 2016 16:05:57 GMT

I would say you are at least a year away, if I were you I would look into a first time homebuyers club or account in your state if available, and save as much as you can. If I was a lender I would want to see a little more history and some of those derogs to fall off, a credit builder loan might help you.