topic Re: Applying in 2 days for an FHA/CONV any tips? : STATS Below How many brokers should I go to? in Mortgage Loans

Applying in 2 days for an FHA/CONV any tips? : STATS Below How many brokers should I go to?

Anonymous — Tue, 02 Feb 2021 16:34:40 GMT

It has been a long process to get here, I applied last year to Quicken loans and a local lender but due to DTI being too high I was unavailable to secure funding. I have taken a year to rebuild my credit, I will finally have my taxes for 2020 on Wednesday which will show an increase in self-employed income from the past year. The problem when i applied a year ago my 2018 taxes showes little income due to being a full time student and just starting my self employment business.

Current application stats below , I will be trying for a Home Ready 3% Conventional Loan, and if not a 3.5% FHA, I spoke to a local lender 3 months ago with updated stats and she said i look qualified for the Home ready Conventional.

How many accounts do you have? How many older than 2 years, 4 years, etc?

I have 3 open accounts all 3 have perfect payment history

Capital one Secured CC - 2 years on time payment no lates Balance - $80

Capital One Rewards CC - 21 months on time payments no late _ $90

Citibank CC (Authorized User) 30 years perfect payments $1000 balance

out of 12,000 limit.

Capital One ( Closed 2018) Perfect payment

Regions Bank ( Closed 2013) Perfect

Negatives -

Macys (Closed Charge Off ) Balance : $742 (Sept 2015)

Discover ( Closed Charge Off) Balance $28 ( Aug 2015)

Indigo (Closed Charge off) Balance $0 ( Charge OFF may 2019) - long story short i had a best friend pass away payments were on the back burner

Portfolio Recovery - Collection Balance $1360 (2016)

Provable job time at your specific employer? Industry?

Photography and Marketing Schedule C - about same this year as last years income on taxes

Online Sales Seperate Schedule C - about 2x the amount from last year taxes

Income? Is it salary or hourly? What has it been on your taxes the last 2 tax years? (which would be 2020 and 2021 tax filings very soon)

Income 2019 Taxes ($25,650) 2020 Taxes ($53,000)

Any money in checking/savings accounts?

$34,000 in checking/savings

Total monthly outgoing obligations (currently) minus any expenses for your current residence...(current rent, etc will only be looked at for verification and comparison to new mortgage payment making sure it's not too large of a jump...in which case an exception would need be made)

$50 total monthly obligation

Current Mortgage scores? All three individually, not the average of all 3.

Experian Fico 2 - 667

Transunion 5 - 633 ( Have not updated this month should be a little higer)

Equifax 4 - 645

Re: Applying in 2 days for an FHA/CONV any tips? : STATS Below How many brokers should I go to?

VALoanMaster — Tue, 02 Feb 2021 20:10:20 GMT

@Anonymous wrote:
It has been a long process to get here, I applied last year to Quicken loans and a local lender but due to DTI being too high I was unavailable to secure funding. I have taken a year to rebuild my credit, I will finally have my taxes for 2020 on Wednesday which will show an increase in self-employed income from the past year. The problem when i applied a year ago my 2018 taxes showes little income due to being a full time student and just starting my self employment business.

Current application stats below , I will be trying for a Home Ready 3% Conventional Loan, and if not a 3.5% FHA, I spoke to a local lender 3 months ago with updated stats and she said i look qualified for the Home ready Conventional.

How many accounts do you have? How many older than 2 years, 4 years, etc?
I have 3 open accounts all 3 have perfect payment history

Capital one Secured CC - 2 years on time payment no lates Balance - $80
Capital One Rewards CC - 21 months on time payments no late _ $90
Citibank CC (Authorized User) 30 years perfect payments $1000 balance
out of 12,000 limit.
Capital One ( Closed 2018) Perfect payment
Regions Bank ( Closed 2013) Perfect

Negatives -

Macys (Closed Charge Off ) Balance : $742 (Sept 2015)
Discover ( Closed Charge Off) Balance $28 ( Aug 2015)
Indigo (Closed Charge off) Balance $0 ( Charge OFF may 2019) - long story short i had a best friend pass away payments were on the back burner

Portfolio Recovery - Collection Balance $1360 (2016)

Provable job time at your specific employer? Industry?

Photography and Marketing Schedule C - about same this year as last years income on taxes
Online Sales Seperate Schedule C - about 2x the amount from last year taxes

Income? Is it salary or hourly? What has it been on your taxes the last 2 tax years? (which would be 2020 and 2021 tax filings very soon)
Income 2019 Taxes ($25,650) 2020 Taxes ($53,000)

Any money in checking/savings accounts?
$34,000 in checking/savings

Total monthly outgoing obligations (currently) minus any expenses for your current residence...(current rent, etc will only be looked at for verification and comparison to new mortgage payment making sure it's not too large of a jump...in which case an exception would need be made)

$50 total monthly obligation

Current Mortgage scores? All three individually, not the average of all 3.
Experian Fico 2 - 667
Transunion 5 - 633 ( Have not updated this month should be a little higer)
Equifax 4 - 645

Hi @Anonymous,

Unfortunately, I don't think your credit/scores are high enough to get approved for a Home Possible Mortgage with 3% down.

I have a client right now that I could not get an approval for on a Home Possible with a 680 mid score and 10% down.

You'll have a better chance going FHA.

Re: Applying in 2 days for an FHA/CONV any tips? : STATS Below How many brokers should I go to?

Anonymous — Tue, 02 Feb 2021 20:38:47 GMT

Hello,

How did his application go for FHA?

Re: Applying in 2 days for an FHA/CONV any tips? : STATS Below How many brokers should I go to?

Anonymous — Tue, 02 Feb 2021 21:45:21 GMT

Im going to give a local lender a try, Wells Fargo , and trying to decide on Quicken or Loan Depot for the last company.

Re: Applying in 2 days for an FHA/CONV any tips? : STATS Below How many brokers should I go to?

JVille — Wed, 03 Feb 2021 01:02:11 GMT

Stay clear of ALL three if you want to actually get a seller to accept your offer. You are best served dealing with a LOCAL Mortgage Broker who is well known in the Real Estate and Lending community. Ask your Real Estate Agent for a recommendation to her top two "Go To" agents. These are the people who can get the deal closed and deal with Several Lenders/Investors with a wide range of tolerance to different borrower situations.
Internet lenders are the kiss of death as they do not know the local community/market and could give a rip about making your Realtor or any agent happy. Big Box lenders like WF are basically just as bad, can't get out of their own way and could care nothing what anyone thinks of them.
As to your qualifications, the charge offs are killing your scores and should have been dealt with long ago. Good luck!

Re: Applying in 2 days for an FHA/CONV any tips? : STATS Below How many brokers should I go to?

Anonymous — Wed, 03 Feb 2021 03:30:14 GMT

Thank you for your tips, I am going first to a local lender she was very helpful 3 months ago looking over everything and going through the whole process to see what I would be eligi

@JVille wrote:
Stay clear of ALL three if you want to actually get a seller to accept your offer. You are best served dealing with a LOCAL Mortgage Broker who is well known in the Real Estate and Lending community. Ask your Real Estate Agent for a recommendation to her top two "Go To" agents. These are the people who can get the deal closed and deal with Several Lenders/Investors with a wide range of tolerance to different borrower situations.
Internet lenders are the kiss of death as they do not know the local community/market and could give a rip about making your Realtor or any agent happy. Big Box lenders like WF are basically just as bad, can't get out of their own way and could care nothing what anyone thinks of them.
As to your qualifications, the charge offs are killing your scores and should have been dealt with long ago. Good luck!

ble for. I always thought it was best to shop around with different lenders, but I may rethink that she seemed very knowledgable.

Re: Applying in 2 days for an FHA/CONV any tips? : STATS Below How many brokers should I go to?

Anonymous — Fri, 05 Feb 2021 00:50:54 GMT

Pre approved by local lender.

Rate 2.89

Loan Amount 200,000 (can be approved for more, this amount provides best rate)

Point Purchase - half a point

Final approval subject to the house we choose etc.

Need to do : Pay taxes I owe for 2020, once paid in full we can move onto the next step of underwriting etc, get paperwork together

Loan Officer stated I am looking very good at this moment, she ran my credit and middle score was 657! 12 points higher than expected!

Re: Applying in 2 days for an FHA/CONV any tips? : STATS Below How many brokers should I go to?

NCRunner — Wed, 10 Feb 2021 00:17:01 GMT

Hi!

Was following, and wondered if the OP ended up going conventional or FHA?

Re: Applying in 2 days for an FHA/CONV any tips? : STATS Below How many brokers should I go to?

Anonymous — Wed, 10 Feb 2021 20:29:48 GMT

Hello !
so it's been a journey lol

submitted an offer buyer did not want FHA . cash or conv. I could not qualify with a local lender conventional initially but upped down payment to 5%. In the meantime my realtor convinced the seller to accept an FHA offer saving me $100s monthly. And he also got me 6% concessions. 😳

Re: Applying in 2 days for an FHA/CONV any tips? : STATS Below How many brokers should I go to?

Anonymous — Wed, 10 Feb 2021 20:04:02 GMT

Also loan depot provided a initial pre approval at 2.25% rate maximum of $230k I submitted at 190k they updated the row approval and sent back ASAP

Re: Applying in 2 days for an FHA/CONV any tips? : STATS Below How many brokers should I go to?

Anonymous — Tue, 16 Feb 2021 16:32:00 GMT

the inspections are done, appraisal is ordered. I was able to rate lock at 2.25%. In underwriting now, my assets credit and income have been documented. Taxes have been filed from my tax preparer. Now I wait which I have a hard time doing. Lol trying to keep busy by thinking of what I would like to re do at the property. Using this thread for dates to remember what applyed etc

Re: Applying in 2 days for an FHA/CONV any tips? : STATS Below How many brokers should I go to?

Anonymous — Thu, 18 Mar 2021 00:30:25 GMT

Signed and funded. Got the keys yesterday have been painting ever since. Everyone from my realtor that I talk to since we got a crazy deal 6% seller concessions $190,000 purchase price less than 3k cash to close.

Re: Applying in 2 days for an FHA/CONV any tips? : STATS Below How many brokers should I go to?

NCRunner — Sat, 20 Mar 2021 10:35:38 GMT

Congratulations!

Re: Applying in 2 days for an FHA/CONV any tips? : STATS Below How many brokers should I go to?

Mr_Mojo_Risin — Sat, 20 Mar 2021 15:00:55 GMT

That's some really cool news!

You've had quite a journey, glad it worked out for you.

Enjoy it!