Hopeful

[Anonymous]

Hi All! Im new here, but have been browsing for a few months now. Very helpful information being shared around this community, thank you! Ill try to keep this as short as possible, but im looking for some encouragement with my situation. Heres a little background info: Our lease is up on May 31st. We decided we didnt want to throw money away anymore renting, so we would like to buy. Wife has fresh/young credit due to being a permanent resident for only 3+ years.  However, she also works for herself and we only have 1 year of tax returns for her income yet. I have worked at my employer for 12+ years making $60k+ and another job ive held for 2 years making $21k.  Im told by our LO we need 2 years tax returns, so her income isnt going to count unfortunately.

Since she has "new" credit and only 1 year of tax returns, the focus is all on me! My middle score when my LO pulled it in January was 595. I had 3 collections, 9 late/missed payments of the 30/60/90 variety on auto loans which are now in good standing, several (5-8) accounts closed as CO/Profit & Loss. Of those 5-8 accounts, 2 of them attempted to enforce judgements, however I made sure to satisfy them immediately. 

I have made great strides since the first pull in January, I have been monitoring and working on improving my score with the myFico subscription and should have a fresh 3B report on March 15th. Currently my TU score increased to 639. So far I have successfully negotiated PFD on the 3 collections which should update soon and I also paid off all CO/P&L accounts so I have no additional balances pending. I also added myself as an AU to a relatives CC, its only been open for 4 years, but has a low balance and $6250 limit, so that should boost my score hopefully. I do have the 2 auto loans still open and in good standing as well.

Im really hoping my score will boost enough in time to be approved for FHA. We do have more than 20% to put down and looking at homes in the $350-375k range. Just not sure my income will reach that far and whether they will accept 1 year tax returns or forego my wifes income altogether. 

Anyways, thanks for hearing me ramble, any suggestions or advice would be greatly appreciated.

[Anonymous]

Hey Everyone! I had a few questions that I was hoping many of you experienced people here in the community can help with.

We were recently pre-approved for an FHA mortgage through Freedom Mortgage, made an offer on a house and it was accepted! We are currently working through processing/underwriting.

I was surprised i got the pre-approval. I had 4 COs on my credit report, 2 of them were unpaid until recently, 5 closed accounts by creditors, plus a few lates on 2 of my auto loans. However, the 2 previously unpaid COs are showing as "Open accounts" on myFico 3B report and seem to be reporting late payments even though I had been making payments to the CAs on the settlement agreement. Why would these 2 report as open when theyre in fact closed and CO? And why would they be reporting late payments regularly, even when I have established a payment agreement with the CA? I thought they were reporting as Open accounts because I still owed a balance, but then why wouldnt have the other cards at the time with balances do the same? On myFico app, it shows last late payment was "1 Month" for TU, which is not true because technically I only have the 2 auto loans and 1 open Cap One credit (AU) on my file which has been paid 100% on time. 

All COs have since 3 weeks ago been paid off in full, so now I am just waiting for whatever changes to be made and a new 3B report on the 15th. I am hoping my middle score raises again before closing in an attempt to get better than a 3.38% rate. We close on 5/14, but have a post closing posession date due to the limited housing market and sellers needing to find a home.

Here are my current scores from 3/15, new 3B report on 4/15.

Fico 8

634 EQ

662 TU

644 EX

FICO 5,4,2

614 EQ

602 TU

613 EX

[tooleman694]

Did you get those collections removed when you paid them? If not your score could actually go down.

[Anonymous]

Any collections I had I was able to PFD luckily. So now my report only consists of 

Open accounts

Capital One (AU) $488/6300

-Huntington bank Auto $16847.56

-Citizens Auto $2660

-Barclay Card $1400 C/O (now paid but needs to update balance to 0. And why it's an open account as a charge off is beyond me.)

-Commerce Bank $770 C/O (Now paid and same as above, needs to update and why it's reporting open?) 

I have a mix of closed accounts, some CCs were closed due to my credit score dropping when my life took a spiral downturn (divorce, accident) but some loans I closed in good standing and a previous mortgage etc. The paid charge offs won't fall off until 2023/2024.

im hoping my score won't drop once those "open account" charge offs update, considering they've always reported as a baddie and will update with a lower utilization balance? I could be wrong, it's why I'm here to ask  

[homeloanexpert]

@Anonymous 

Q: Why would these 2 report as open when theyre in fact closed and CO?

A: Clearly they are not being reported correctly. They Loan Officer could do a correction rapid rescore to correct them.

Q: And why would they be reporting late payments regularly, even when I have established a payment agreement with the CA?

A: Because the collection company is lazy! They could just as easily been reporting this tradeline as current - now paying. The lender could do a correction rapid rescore or order a credit suuplement showing that you are now paying.