topic Re: I feel a little smarter but... in Mortgage Loans

I feel a little smarter but...

Anonymous — Wed, 20 Feb 2019 06:11:29 GMT

Hi All,

I’m new to posting but have been lurking for couple days. My head may explode from all the great info!

I just got my 3 bureau deal from here and I was pleasantly surprised but still have a whole lot of work to do. The hubs is next...In the meantime, I have a couple of things I’d love your thoughts on. I am not a lingo pro whatsoever so please bear with me...I’m learning.

We are PRE-Preparing to buy a house (hoping by the end of the year, if possible) so trying to get our ducks in a row. I will just say that 2014/15 was a bad year for us so basically that’s what we are hoping to clear up in the most cost effective and score boosting way possible. I’m afraid I’ve already made mistakes and am hoping you all might be able to educate me more...

Me:

I have 6 collections currently on my reports.

One was fraudulent and disputed yesterday. EX has already deleted it, waiting on TU. Wasn’t on EQ.

I set up a payment plan for another of them months ago and only have about 4 payments to go.

On one more, I was able to settle for much less than owed today.

One is a medical and fairly new. I was going to see about settling with them.

The other two are $600 and $890 and both due to drop in 2021. What should I do with these? Do i leave them alone or try to settle?

I also have a few derogs that say CO/Purchased by other or sold but no collection reported. CFC, Walmart, Target and Amazon. All also from 2013/15. 2021 seems so far away to just leave them...lol

I also have a couple (Old Navy and Kohls) that I have 30 and 60DL but paid off way back when...If I understand correctly they should come off spring of 2020.

Should I have asked if the first three do PFD’s? Is it too late? I have also read here that next month I should ask for removal?

I have a 2 year old car loan that I was good on for first year then one 30DL in May and perfect again since. Can I ask them to consider removing the ding now? Or after a time? I honestly just forgot to pay it! And paid it as soon as I went to make the next months payment. Ugh.

I have 5 school loans with Nelnet in deferrement. I am finally going to finish this **bleep** degree if it kills me. They changed hands thrice, Sally Mae, then Mohela and now Nelnet. They are ALL still there. Is that normal? Is that hurting me?

New car in 2018 in good shape. It was Cap One Auto for first 5 months then refinanced with NFCU (WAY BETTER DEAL!!!) I was/am never late on it. NFCU secured card that matured into @$2000 CL with perfect record but at a higher util because we had to buy a new laundry set 2 weeks ago. (I paid cash for half. ) I plan to have it paid down pretty quick though. Also have a Jared card with a $2500 CL that I think I better use soon or they will close it. It’s at $0 and been around for 3 years with not defaults.

My FICO Score 8’s: 608EQ, 634TU, 639EX

My FICO Score 5,4,2: 605EX, 575TU, 608EX

My husband:

I dont have his scores yet but we just put in to rehab his defaulted student loans. We’ll be in rehab from March to November.

He is joint on the car loan with a 30DL mentioned above.

He has one medical collection.

A Cap one account showing CO but no collection.

And one more collection showing paid.

That is literally all he has. Lol

We are opening him up a secured NFCU card next week with a $600 limit so he can use that for his weekly coffee and lunches and we’ll pay it off each month.

Since we are pretty far out, should we open another card or two? Any other suggestions for either of us?

I am happy to provide more info if you need it. I hope I did this right. Lol Thanks in advance.

I feel comforted having found a place with so many folks doing so well and working so hard to get their S*** together. I am so motivated!

Sempermom

Re: I feel a little smarter but...

homeloanexpert — Wed, 20 Feb 2019 17:03:36 GMT

First it appears that one of you children is a Veteran (SemperMom was dead giveaway). I am going to keep it simple. From this desk it would appear that you are a perfect candidate for a government insured loan i.e. FHA, VA or USDA. The best loan would be a VA. The VA has no minimum credit score and they do not require that collections or charge off’s be paid off. It's at the discretion of the Underwriter and as long as it was years ago as you indicted, the UW should let them slide.

I tell folks do not dispute any collections or charge offs unless you know they will come off. Usually they won't and when the creditor does respond to the dispute, the most recent activity date will surely drop your scores. In addition, in most cases when you remove disputes later on, your score will most likely drop. It's never too early to contact a Loan Officer to work on a strategy.

FHA is the same with collections and charge offs but with some different nuances. First, don’t have to worry about Medical Collections, or regular collections under $2,000.00. If your collections are over $2K, we have to hit the borrower with an imaginary 5% payment of the balance and add it to your DTI. It's HUD’s way of punishing you for not coming the table with your credit issue resolved. Effectively this will shrink your buying power.

What I suggest is find yourself a GOOD Loan Officer with a track record of helping people work through their credit challenges. I warn people in articles or blogs I have written, don't go Maverick with your credit unsupervised. You just may find yourself in a worse position after the dust settles. Hook up with a Pro who that will lead you to the finish line with the end game of attaining a set keys to your dream home. Hope this helps

Best wishes to you!

Re: I feel a little smarter but...

Anonymous — Wed, 20 Feb 2019 17:54:12 GMT

HLE, May i call you HLE? Thank you for your well wishes. We need all the good karma we can get.

My son is a Marine. I’m just an itty bitty tiny bit proud of him.

Can non-vet parents apply for VA loans if they have active military kids?

I would love to chat with a LO but I am not sure what that would cost us or how it works. I bank with NFCU and have been pre-qualified for 190K on my own but we cant get much under 100 yrs old around here (WV) for that, that I would let my younger kids live in. I went ahead and got my husbands FICO 5,4,2’s and well, His middle is 527.

I have been reading and have gotten some really great advice to start us off in the right direction. Oh and I was just approved for a Quicksilver One card for 300$ and my score jumped. It has an annual feel and a ridiculous rate but I read here its a good one to start with? :/

Any way, I am done doing anything for now. FULL STOP on both of our reports. Hopefully you can advise me on how finding a loan officer works and I can afford to take advantage of the consult.

thanks again!

Re: I feel a little smarter but...

Anonymous — Thu, 21 Feb 2019 02:58:20 GMT

I'm not quite as versed in this area as HLE. But I do know you do have to be a Veteran to get a COE for a VA loan. I would also recommend going to your local USDA extension office or you can check out the FSA loans online for another option. They have great rates. All the info is on the USDA FSA loan website.

Side note- My Mom put Marine stuff in her email and user names after I joined in 98. I think sometimes Marine Moms act crazier than the actual Marines. But then again, you did have to raise us.....

Re: I feel a little smarter but...

Anonymous — Thu, 21 Feb 2019 04:07:03 GMT

Hi Okie,

I thought so just making sure I wasn’t missing something.

I actually discovered a home ownership program in my state and have inquired since we fit all the upfront criteria. I’ll update when I hear more.

Yeah, MoMs are nuts. It’s our MOS. 🤣🤣🤣

My son is Logistics- Landing Support Specialist but was hoping to get Combat Engineer. Just wasn’t available when he was ready to ship. He loves his job though and is in his 3rd year already. Time flies!

Thank you for your service!

Re: I feel a little smarter but...

homeloanexpert — Thu, 21 Feb 2019 18:10:56 GMT

Yes you can call me.

Re: I feel a little smarter but...

Anonymous — Mon, 04 Mar 2019 03:47:36 GMT

I was a Combat Engineer for 8 of my 10 years in Camp Lejeune. My last 2 I got stuck on recruiting duty. Then it came down to my choices of re-enlist and be a Marine or be a Dad. I chose Dad....

Re: I feel a little smarter but...

Anonymous — Mon, 04 Mar 2019 04:07:55 GMT

I’d say that was an honorable choice!