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My wife (654 credit) and myself (634 credit) were denied an FHA loan today. We had a few 60 day late's back in December of '11. The reason for the denial was due to the late payments on a student loan and C.C. and not because of our income. We have no late mortgage payments in over a year, but like I said, we have late payments less than a year old on other things, but of those items that were paid late, they are now paid off as agreed. No buyoffs. Currently our debt is as follows:
-Mortgage $1320/month $140,000 balance
-Car $225/month $4500 balance
-Car $300/month $12,000 balance
-Student Loan $150/month $30,000 balance
-Credit card $58/month $2000 balance (plan on paying off in July)
-Personal Loan $116/month $650 balance (plan on paying off in July)
Total monthly debts- $2170
Total monthly income $12,750
Debt to income ratio 17%
Even if I add our new mortgage of $2000/month we would be at 32% Debt to income level. We would be replacing the $1320 mortgage with the $2000 one, if we got approved.
Considering all the info listed, when can we re-apply and get approved?
This is very disheartening.....so upset over this...
@ccubedzx3 wrote:My wife (654 credit) and myself (634 credit) were denied an FHA loan today. We had a few 60 day late's back in December of '11. The reason for the denial was due to the late payments on a student loan and C.C. and not because of our income. We have no late mortgage payments in over a year, but like I said, we have late payments less than a year old on other things, but of those items that were paid late, they are now paid off as agreed. No buyoffs. Currently our debt is as follows:
-Mortgage $1320/month $140,000 balance
-Car $225/month $4500 balance
-Car $300/month $12,000 balance
-Student Loan $150/month $30,000 balance
-Credit card $58/month $2000 balance (plan on paying off in July)
-Personal Loan $116/month $650 balance (plan on paying off in July)
Total monthly debts- $2170
Total monthly income $12,750
Debt to income ratio 17%
Even if I add our new mortgage of $2000/month we would be at 32% Debt to income level. We would be replacing the $1320 mortgage with the $2000 one, if we got approved.
Considering all the info listed, when can we re-apply and get approved?
This is very disheartening.....so upset over this...
For FHA, from my understand and how it was explained to me, is your late payments or negative info needs to be a year old or greater.. when I was going through the process, I had a collection account (which was subsequently deleted) that appeared as a new collection on Dec 2011 and my LO indicated I wouldn't quailfy without getting it deleted until Jan 2013.
My guess is you will not be able to qualify until your lates are a year old, regardless of income.
-scott
Yep. No lates within the last year. Everything else looked good. See if you can gw the lates and then maybe you can app sooner. If not, it gives you more time and maybe you can know off the smaller auto loan in the next year. Your dti is good, but every little bit helps. Or save up for more of a down payment. Sorry the bad news though, that stinks.
@How2increase wrote:
Oh no!!! That is so disappointing! Makes me nervous, I'm applying for a mortgage in a few months and my last late was in dec.2011. I contacted first guaranty mortgage and a LO there said only late payments within the last 6 months will automatically get you a denial. What lender did you apply with? Not even conditions? Just a flat out NO?
This is a sign that you should not get a loan from that person. FHA mandates 12 months of clean credit, regardless of who you get the loan from.
No LOE is going to change FHA guidelines. You either PFD or GW or wait it out. Six more months isn't that long, just gives you more time to get scores up and save. You can easily google the FHA guidelines and see if this is the only thing holding you back.
LO's talk ___ all the time to get you in the door. They say crazy things.
@Booner72 wrote:
@How2increase wrote:
Oh no!!! That is so disappointing! Makes me nervous, I'm applying for a mortgage in a few months and my last late was in dec.2011. I contacted first guaranty mortgage and a LO there said only late payments within the last 6 months will automatically get you a denial. What lender did you apply with? Not even conditions? Just a flat out NO?This is a sign that you should not get a loan from that person. FHA mandates 12 months of clean credit, regardless of who you get the loan from.
Just to throw this out there.. if the late payment is Dec 2011, and the poster was planning on apping in 'a couple months' -- the late payment has to be older than a year.. maybe the LO wasn't talking out of his/her rear.. maybe they just planned on, I dunno, an October app? Who knows
I do agree though, all LO should know the guidlines..
-scott