Chances of getting a mortgage?

Anonymous · ‎09-25-2015

Hi all - I want to start planning for the purchase of a home in one year from now. But I'm curious based on what my situation will look with my CR if it's even possible. I have several CO's dropping off my record between the months of 1/2016 - 7/2016. After July 2016 I will be sitting with this:

-Auto Loan with 10x 30 day lates (almost over 2 years old)

-Auto Loan with 1x 60 day late (almost 4 years old)

-1x Charge Off (Paid) from 2011 (drops off in 2018)

-2x 120 days late on a credit card (over 2 years)

Currently I stand at a FICO Mortgage Score of 615. I hope that in 12 months at the time of application I can get it up to 650-675. I earn about $90k/year. I currently have three revolving credit cards at about $10k in total credit utilizing less than 9%.

So... obviously I'm just looking for opinions... is it reasonable to think in one year from now I will be able to get a mortgage? If so, I'm curious what types of things I may expect the UW to ask for. Also, if there's anything I can do in the next year (besides trying GW letters... I've done that to the max!), what can I do now to make the loan process easier?

Or should I give up the dream of ownership in a year and plan to wait it out longer?

Thanks!

Anonymous · ‎09-25-2015

@Anonymous wrote:
Hi all - I want to start planning for the purchase of a home in one year from now. But I'm curious based on what my situation will look with my CR if it's even possible. I have several CO's dropping off my record between the months of 1/2016 - 7/2016. After July 2016 I will be sitting with this:

-Auto Loan with 10x 30 day lates (almost over 2 years old)
-Auto Loan with 1x 60 day late (almost 4 years old)
-1x Charge Off (Paid) from 2011 (drops off in 2018)
-2x 120 days late on a credit card (over 2 years)

Currently I stand at a FICO Mortgage Score of 615. I hope that in 12 months at the time of application I can get it up to 650-675. I earn about $90k/year. I currently have three revolving credit cards at about $10k in total credit utilizing less than 9%.

So... obviously I'm just looking for opinions... is it reasonable to think in one year from now I will be able to get a mortgage? If so, I'm curious what types of things I may expect the UW to ask for. Also, if there's anything I can do in the next year (besides trying GW letters... I've done that to the max!), what can I do now to make the loan process easier?

Or should I give up the dream of ownership in a year and plan to wait it out longer?

Thanks!

What is your gross income and monthly debts? What type of assets do you have? You may have some options for an FHA loan now, but you will definitely have more options once your score hits 620 or 640.

Anonymous · ‎09-25-2015

Thanks so much for your reply!

I have no credit card debt to speak of (I maintain around $900 to keep around 9%). My only other monthly payments are rent ($1,350), a IRS tax payment plan for $600/month and a car payment ($450) and smaller stuff like utilities and insurance. So all said, if you average it out with rent I have less than $2,500/month, without rent around $1,200/month.

My gross income is $80k but I also get bonuses and stocks each year. With bonus this year my salary was $90k, if you include the stocks that vested this year my full-time income would be around $105k. I also have a side business I do which brings in about $30k more. All said for my taxes in 2015 I would guess $130-$140k in income. In January of next year, I will receive a vest of about $50k more of stock on stop of salary and bonus. My stock vests annually as long as long as I'm with the company (I've been there 3 years).

I don't know if stocks count. I don't really have any other assets.

Also - I misspoke about my scores. Here's what they are as of today:

EX:
FICO Score 2 - 634

TU:
FICO Score 4- 645

EQ:
FICO Score 5- 621