Mortgage Goal

[Anonymous]

Hi Friends,

Recovering from a few bad decisions with family & finances, as well as a stint of unemployment. Here's an overview of what I'd like to accomplish and my current situation. I have $2,500 max that I can put toward debt right now.

I'd appreciate any advice!

GOAL

• Home purchase (FHA) by June 2020, so I'd likely need to get a preapproval in March/April I believe.

MORTGAGE SCORES

• Experian Fico 2: 583
• Transunion Fico 4: 573
• Equifax Fico 5: 538

CREDIT CARDS

• Usage: 56%
• I just paid this down to < 2% though. So, I expect a slight bump once balances update.

COLLECTIONS

• Security Credit Services: $3423
  • Reported October 2018
  • All Bureaus
  • They said they'll give me a PIF letter for 50%. It's been a couple months since then. They may go lower. Said no to PFD.
• Sequim Asset Solutions (DirecTV): $603
  • Reported March 2019
  • All Bureaus
  • Disputed this, but it came back valid and they refuse PFD. Account was opened by a family member without my knowledge (ugh). Opened a fraud claim.
• ERC (Sprint): $1,486
  
  • Reported November 2016 / Delinquent 2014
  • Transunion + Experian
  • I read here that if I pay Sprint in full directly they'll have ERC remove it. I spoke with Sprint and they were kind of coy about it, but said they'll talk with ERC if I pay. Not sure.

CHARGED OFF ACCOUNT

• First Credit: $3,941
  • Reported May 2018
  • All Bureaus
  • Said no to PFD. I read that settling won't help. Not sure.

STUDENT LOANS / AUTO LOANS / CCs / ETC

• All current
• Only 85% timely payments historically.
• DTI is about 5%

[Anonymous]

I don't only the exact details of it personally, but I do one that a FHA loan will look at a federal student loan differently if you are on an Income-driven repayment plan. IDR plans such as income-based repayment or REPAYE/ PAYE are based on a small percentage of your income rather than taking into account your whole loan balance (such as on a standard repayment plan). FHA will look at the monthly loan payment instead. You might want to use the loan repayment estimator to figure out which one will give you the lowest payment.
Also if the lates were because you later rehabbed, they can possibly be removed with a dispute. You funny have a right to it, but it works sometimes.

PS. Have you tried a CFPB or similar complaint for the Direct TV? I think it can give you a possible
resolution in 30 days.

[Anonymous]

I'm sorry, I gave you the wrong information. It's not a FHA loan is a conventional loan. Someone else can help you in on the mortgage part better. Here is a link that might answer some of your questions:
https://ficoforums.myfico.com/t5/Mortgage-Loans/What-s-best-Student-Loan-Repayment-option-for-DTI-is...

[Anonymous]

Thanks for replying, I appreciate it!

I’ll check that area out.

[Anonymous]

Credit utilization drop should add about 20-30 points. 

1. For Sequim I'd note on all credit reports the account is fraudalent and call stay on top of them and the bureaus to have removed immediately. 

2. Pay Sprint and call until you get someone who'd agree with the PFD.

3. Give security credit an offer for 1k to start and get on a plan to pay the rest in the next 8 months. 

This should square away your 3 collections, take care of credit util issue, and leave you with one charge off that you can't do much about anyway. Some lenders will ask to pay the CO, some will say it doesn't matter. But either way, your score would probably jump 60-80 points taking care of this. 

[Anonymous]

Hi Friends,

Couple of Updates

• Capital One increased to $500 from $300
• Opened a couple store tradelines and have paid timely
• All payments being made on time, fortunately.

GOAL

• Home purchase (FHA) by June 2020, so I'd likely need to get a preapproval in March/April I believe.
  • I'm pretty close! COVID-19 have made it a little harder to get a mortgage though.

MORTGAGE SCORES

• Experian Fico 2: 583 [NOW---> 640]
• Transunion Fico 4: 573 [NOW---> 620]
• Equifax Fico 5: 538 [NOW---> 639]

CREDIT CARDS

• Usage: 56% [NOW---> ~6%]

COLLECTIONS

• Security Credit Services: $3423
  • Reported October 2018
  • All Bureaus
  • They said they'll give me a PIF letter for 50%. It's been a couple months since then. They may go lower. Said no to PFD.
  • [NOW---> 5/2020 They agreed to remove over the phone and in email. Paid the full amount and deletion has been sent to bureaus, can't wait to see how this helps!]
• Sequim Asset Solutions (DirecTV): $603 -> Credence Resource Management (DirecTV): $603 
  • Reported March 2019
  • All Bureaus
  • Disputed this, but it came back valid and they refuse PFD. Account was opened by a family member without my knowledge (ugh). Opened a fraud claim.
  • [NOW---> 4/2020 Paid in full to Credence and has been removed!]
  •  
• ERC (Sprint): $1,486
  
  • Reported November 2016 / Delinquent 2014
  • Transunion + Experian
  • I read here that if I pay Sprint in full directly they'll have ERC remove it. I spoke with Sprint and they were kind of coy about it, but said they'll talk with ERC if I pay. Not sure.
  • [NOW---> Ages off 10/2021, I think I'll wait it out]

CHARGED OFF ACCOUNT

• First Credit: $3,941
  • Reported May 2018
  • All Bureaus
  • Said no to PFD. I read that settling won't help. Not sure.
  • [NOW---> Not sure what to do here, think I'll let it sit, any thoughts?]

STUDENT LOANS / AUTO LOANS / CCs / ETC

• All current
• Only 85% timely payments historically.
• DTI is about 5%