Good salary, not a lot of debt, good dti, low scores....

[egaithe]

My DH's 100 Util on 2 closed credit cards, it's killing his score, he has recent lates on student loans, but he will put them in deferment, his middle score is 551.  I had  recent 90 day lates on my student loans (just forgot to call them to put back in forbearance) but they are showing current now. My credit card util is 10%, my middle mortgage score is 589. We gross $215K annually, our DTI is about 25%. What in the world could be we possibly qualify for in terms of a lender, granted that we got his middle to 580?

[JVille]

At a minimum all lates need to be 12 months behind you. From an UW perspective the Lates pays at your Income level show a lack of Financial responsibly. 1x 30 days is a mistake but you have multiple issues.
I’m so sorry

[egaithe]

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@JVille wrote:
At a minimum all lates need to be 12 months behind you. From an UW perspective the Lates pays at your Income level show a lack of Financial responsibly. 1x 30 days is a mistake but you have multiple issues.
I’m so sorry

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Thanks. That is what I was afraid of.

[Anonymous]

With an income of 215k and 25% dti means you have about 14k disposable income a month. How much is your housing now? How much savings do you have?

[egaithe]

$1800 mortgage, $50,000 in savings

[JVille]

Put ALL your bills on Autopay..... that way this will NEVER happen again. Also know that UW will comb thru your bank statements looking for Overdrafts.... remember that some statements actually have a section for “Year to Date” OD Fees. So be very careful.
Good luck !

[AZEsq]

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@egaithe wrote:

My DH's 100 Util on 2 closed credit cards, it's killing his score, he has recent lates on student loans, but he will put them in deferment, his middle score is 551.  I had  recent 90 day lates on my student loans (just forgot to call them to put back in forbearance) but they are showing current now. My credit card util is 10%, my middle mortgage score is 589. We gross $215K annually, our DTI is about 25%. What in the world could be we possibly qualify for in terms of a lender, granted that we got his middle to 580?

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You both need to get on IDR or IBR or REPAYE. At the end of the day, the deferments are causing your balance on SLs to rise at an alarming rate. Honestly, it's really crazy that you're not paying them at your income, but REGARDLESS SL companies' goal is to make you feel like deferment is the way to go. As long as you stay deferring them, your balance will rise. Is your balance currently higher than what you took out? I'd focus on getting these into a repayment you can afford before getting a mortgage because the broker will include an amount that amortizes the loan in your DTI anyway, so it's not as low as you think it is. 

You'll need 12 months post installment late unless the student loan company will delete (they usually won't). I'm guessing these salaries are fairly new. Were the credit cards closed by the grantor? Does he have at least 3 revolving active trade lines? 

I guess I'm not understanding how he has 100% utilization on closed cards without a bunch of late payments reporting. Were they authorized user cards? If so, just have him removed. If not and it was a universal default situation from one late where the cards were with the same bank/servicer, you'll both need to rebuild a bit. Check the forums for AZEO--best terms for a mortgage can be had here and I think, based on what you say about your SLs that your DTI will be dicey with them included--and know that you have about a year rebuild minimum ahead. Also, echoing JVille: Put your bills on Autopay and get a budgeting software or use calendar alerts so you don't get overdrafts.