Am I ready for FHA or USDA?

[Anonymous]

Hello Fico family

I have been rebuilding since December 2020. Here is my situation.

THE NEGATIVE (very negative):

- Chapter 7 in 2017. Discharged in 2018

- 4 late payments on 1 credit card from 2020 (last one in November). 2 credit cards charged off in 2019

- Repo in August 2020

- 1 collection posted in 2018 ($3000)

- $50K in student loans ( 6 accounts, last late were in 2019)

- Mortgage middle score = 635

THE POSITIVE

- In Dec 2020 aid off all credit card charge off (total $1600). Settled car repo account for $8000, paid off. All now report zero balance. They last reported in Dec 2020.

- Clean report since Dec 2020

- Opened 6 installment accounts since Dec Dec 20. All paid off. Car loan opened Mar 2021, no lates. Current bal = $11k. I can pay it off if necessary

- Promotion at work. Current salary about 86k. Current savings =20k. My saving rate is currently at $2000/month

- I can document why I struggled after BK (parent in life/death medical situation overseas and I'm their only support)

Should I apply now or wait?

My concern is the quickly

---

---

rising home prices and interest rates.

Thanks much

[VALoanMaster]

---

@Anonymous wrote:

Hello Fico family

I have been rebuilding since December 2020. Here is my situation.

THE NEGATIVE (very negative):

- Chapter 7 in 2017. Discharged in 2018

- 4 late payments on 1 credit card from 2020 (last one in November). 2 credit cards charged off in 2019

- Repo in August 2020

- 1 collection posted in 2018 ($3000)

- $50K in student loans ( 6 accounts, last late were in 2019)

- Mortgage middle score = 635

THE POSITIVE

- In Dec 2020 aid off all credit card charge off (total $1600). Settled car repo account for $8000, paid off. All now report zero balance. They last reported in Dec 2020.

- Clean report since Dec 2020

- Opened 6 installment accounts since Dec Dec 20. All paid off. Car loan opened Mar 2021, no lates. Current bal = $11k. I can pay it off if necessary

- Promotion at work. Current salary about 86k. Current savings =20k. My saving rate is currently at $2000/month

- I can document why I struggled after BK (parent in life/death medical situation overseas and I'm their only support)

Should I apply now or wait?

My concern is the quickly

---

---

rising home prices and interest rates.

Thanks much

---

The only way to find out is to apply. My gut tells me you'll need a manual underwrite so be prepared to write a letter of explanation regarding the post bk credit issues.

When I have files that require a manual u/w, I have my head underwriter review them to make sure it will fly. That way we know you're good to go before you go out and start looking at homes.

[homeloanexpert]

@Anonymous 

Go for it! The prices are surely going up fast! You seem like a perfect candidate for a FHA loan for sure. I would have to see on the USDA.

[Anonymous]

As someone who applied in early November and amjust now beingcontacted I say apply as early as possible, especially with the market changing daily. Or risk being priced out very quickly, I've already seen three house I was interested in selland everything keeps going up up up.