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Exemption to 12 month - no late!!


Exemption to 12 month - no late!!

I co-sign for a home loan with a relative back in 2000 but did not live on the property. Everything went well but she fell on a hard time last year and missed a few months of payments. Of course I wasn't aware of it and hit me with 30 day and 90 day which dropped my score from mid 700 to TU-654 and EQ-716. Last late was reported in Sept '12 and the loan is paid in full now. I sent a GW 2 weeks ago to lender explaining my situation and asking if they can delete or update the report (No reply so far).


And now, I'm thinking about getting a mortgage myself so I did a lot of reading in this forum and found out that most lenders requires 12 month of clean history. I'm worried that these lates will prevent me from getting a mortgage soon. I'm a veteran and can either go VA or FHA. I always pay my bills on time and never had any lates.


I makes $90K and have no debt except $1100 in rent and I have $100K in liquid cash sitting in High Yield savings available for down payment. Should I even bother to apply or wait until I have 12 month of clean history? BTW..lesson learned about co-signing a loan..never gain Smiley Embarassed




Message 1 of 7
Moderator Emeritus

Re: Exemption to 12 month - no late!!

I agree with the no more cosigning, but we live and learn.  What route are you trying to go with the mortgage?   FHA?  Conventional?

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 2 of 7
Valued Contributor

Re: Exemption to 12 month - no late!!

12 months of no late payments on the mortgage is something you can't get past.


This is a very strict rule, I was denied my loan because my Wife had late payments on her mortgage and she wasnt even on the loan.

Message 3 of 7

Re: Exemption to 12 month - no late!!

Shogun - I'm in California and looking at 350K (If I can qualify base on my income). I can go conventional with 20% down but will eat up most of my savings or FHA (I prefer) with 10% down and will have plenty of reserves


Tooleman694 - WoW!!! I guess I'll just wait it out and keep saving

Message 4 of 7
Valued Contributor

Re: Exemption to 12 month - no late!!

You can go conventional with 3 percent down.


But if you are wanting to put down 10 percent and you can go conventional I would go that route over FHA all day long.

Message 5 of 7
Regular Contributor

Re: Exemption to 12 month - no late!!

I would find a lender that works with a manual underwriter and see if you can submit a LOE. It may work for VA but, t is pretty recent and it's a late mortgage payment. Try and see.
Starting Scores:TU/513 EQ/484 EXP/513 3/2012 (lender pull)
Current Scores:TU/681 EQ/637 EXP/613 11/2012 (lender pull)
Goal:700 across the board
Message 6 of 7
Valued Contributor

Re: Exemption to 12 month - no late!!

It wont make it past any underwriter.

Message 7 of 7