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