The wife and I would like to get a construction loan around April 2018. Our debt to income would be around 30%. Our FICO 3B mortgage scores EQ 615,TU 631, EXP 644, hers EQ 644, TU 667,EXP 701. I would have around 25K to put down which would be around 10% down. We do have bruised credit with lates, charge offs and 1 collection. Those were all paid about 15 months ago. We do have a chapter 7 on our credit that will be 10 years old next month so I am assuming it should fall off. Our current accounts
Student loan that was refinance paying on time for 6 months
car loan I just made first payment
Authorized user on Discover card 0 balance
U.S bank $40
2 store cards with 0 balance
Student loan paying on time for 16 months
Discover card 0 balance
Authorized user U.S. bank $40
Car loan paying on time for 26 months
What can I do? If anything to be ready this spring.
Thanks in advance for the advice.
Someone told me that car leases under 10 months remaining are not counted in your DTI for mortgages. If this is true that drops my DTI to 25% with the projected mortgage payment. Since my wife will only have about 6 months left on her lease in April.
No new applications / inquiries.
If possible, keep all cards except one at a zero balance, letting one report an amount between $10 and 8.9%.
And don't apply 'til the BK drops off of your report and you can see what your scores actually turn out to be. Then you'll be better able to assess (and work with others to assess) your options.
|EQ||763||7 INQ (4 CC, 2 mort, 1 auto)|
|EX||738||8 INQ (4 CC, 2 HELoan, 2 mort)|
|TU||805||6 INQ (4 CC, 2 mort)|
|6/24||< 5%||AAoA TBD | AoYA 0m | AoOA 19y 2m|