topic Re: How I am looking so far? in Mortgage Loans

How I am looking so far?

Shansx — Wed, 22 Sep 2021 15:22:54 GMT

We are looking to buy a house no later than April of 2022 (lease is up then). I have been working hard on cleaning up some credit issues we've had in the past. Our income sits at $160,000, have $10,000 in savings, but can definitely grow that some more over the next few months. My husbands mortgage scores are at EQ-663, TU-675, EX-679. He has one collection from 2017 for $5760 (capital one card). I'm a little trickier. My mortgage scores are at EQ-632, TU-614, EX-606 (these we're mid 500's just 2 months ago). I still have a pay for delete collection to be removed (has been paid, just waiting for the update) and a credit card that has been paid down to under 10% waiting to update, so hoping for some bump from those 2. That does leave me with 3 collections, two from 2016 and one from 2018, which total $7922. I also have student loans currently in forbearance. The total outstanding on the loans in $82976 (I believe I've read .05% is calculated towards DTI). I've never owned a home, my husband sold his last home in 2017 (someone told me that qualifies him as first time home owner again).

Long and short, does it look like owning a home by April could be possible? What am I not thinking of? What steps do I need to be taking now? What else can I do to make this process easier, better, more viable?

Re: How I am looking so far?

Mortgage-Specialist — Wed, 22 Sep 2021 15:59:50 GMT

I'm 95% certain that you'd qualify for FHA righ now. Collections aren't required to be paid (with some of us lenders) so paying those off is totally up to you.

You'd want to have a lot more improvement on scores to go Conventional. By the looks of things, it appears your scores are shooting up pretty quickly. Keep up the good work

Re: How I am looking so far?

VALoanMaster — Wed, 22 Sep 2021 16:34:42 GMT

@Shansx wrote:
We are looking to buy a house no later than April of 2022 (lease is up then). I have been working hard on cleaning up some credit issues we've had in the past. Our income sits at $160,000, have $10,000 in savings, but can definitely grow that some more over the next few months. My husbands mortgage scores are at EQ-663, TU-675, EX-679. He has one collection from 2017 for $5760 (capital one card). I'm a little trickier. My mortgage scores are at EQ-632, TU-614, EX-606 (these we're mid 500's just 2 months ago). I still have a pay for delete collection to be removed (has been paid, just waiting for the update) and a credit card that has been paid down to under 10% waiting to update, so hoping for some bump from those 2. That does leave me with 3 collections, two from 2016 and one from 2018, which total $7922. I also have student loans currently in forbearance. The total outstanding on the loans in $82976 (I believe I've read .05% is calculated towards DTI). I've never owned a home, my husband sold his last home in 2017 (someone told me that qualifies him as first time home owner again).

Long and short, does it look like owning a home by April could be possible? What am I not thinking of? What steps do I need to be taking now? What else can I do to make this process easier, better, more viable?

Your scores will work for an FHA loan right now but you'll obviously benefit from continuing to improve them.

FHA does not require the collections to be paid off but, because your aggregate balance is over $2,000, you'll have to qualify with a payment of 5% of the total balance or $396.10 added to your liabilities.

Yes, FHA now allows us to calculate your student loan payment at .5% of the balance. In your case that would be $414.88 per month.

Re: How I am looking so far?

Mortgage-Specialist — Wed, 22 Sep 2021 16:41:37 GMT

Also, your interest rate (at current scores) should be in the high to mid 2's for FHA

Re: How I am looking so far?

Shansx — Wed, 22 Sep 2021 16:47:06 GMT

I am definitely still working on them! And I'm hoping to be able to do something with those last collections too, I have letters out to all of them hoping to get the balances down to something I can pay. Thank you for all of the info!