I'm totally Lost! Help!

[Anonymous]

How did you guys find the Lenders u are using? I have called a couple of places no one wants to talk to you if your credit score isnt better than 620.

How do you apply for a USDA Loan? I looked on the site. I cant seem to figure it out.  when it says you can have an income of up to 115% of med inc can someone explain that?

[Anonymous]

As far as income 115% median means that if the average income in your area is 50K then you can not make more than 57500 and qualify.  basically you have to be in the middle income bracket of your area.

As far as the 620, it is very tough right now to get loans under 620.  FHA is still doing them and I believe and USDA, but make sure all bills are and have been on time and you get all your ducks in a row.  Do yo know if your area qualifies for USDA?  That would be the first step.  then talk to a local FHA lender and see what they think your situation is.

[Anonymous]

Have you tried the map? http://offices.sc.egov.usda.gov/locator/app?state=us&agency=rd

Not sure that's it but can't hurt to try

[Anonymous]

I live in York county, SouthCarolina. Its not on the list but Charlotte is my town is considered a bedroom community of Charlotte and Charlotte is on the list. I will have to call to make sure. I think I can squeak by with the income barely at 97K. if the USDA is 100% would I still need the 3.5% down which FHA requires?

All the bills are caught up except for my car payment which I was last 11 times in a row from a job lost back in january of 2008. I finally paid off the past due amts. I'm going to try to GW capital one to see if they will get rid of them since I was paying the car payment every month starting back in March of 2008. have not missed a payment since. this is what did most of the damage to my cr.

I have several baddies on my cr but most are paid or settled just waiting for CBR to update correctly. I have one Public Lein from the IRS but it is paid and will be removed this June.

I have at this point 3 outstanding Baddies that need a resolution. 2 collections and medical. One collection will also fall off in June and the medical is past the SOL for california which I will start working on tomorrow. the 3rd collection i might have to wait on. I dont feel I owe them anything since my ex had the car and it was his responsibility.

DH is an issue! he has BIG BIG bills all credit cards all collection accts good thing is they are past 2yrs. A mortgage lender told us not to touch or do anything that is greater than 2 yrs old.

[Anonymous]

Thanks Lady it helped a great deal. I called and i was given the number to several approved lenders. I called the lender and he says he can get us approved not for a USDA loan but for FHA because we make to much money for the other. After running our credit he says we could be approved for about 280,000 or more but we would need to raise our scores 25 points for me and 45 for my DH. I also had to get the contract from the builder we want to use. I  had a hit on my credit report showing a new creditor listed as the mortgage company. What should I make of this?

[Anonymous]

My pleasure, i'm glad you were able to finally get hold of someone

Is it a creditor or just an inquiry? When you go for preapproval they do pull your scores so they can give you a better picture of your chances at being approved. Inquiries do drop scores a few points unfortunately but if you have several within 14 days of each other they'll only count as 1 inquiry. That's why it's best to do all your loan shopping at one time.

Have you been able to figure out why your scores are low? Some actions can boost your score quickly like paying credit card utilization below 10%. Lots of great info on these forums for raising scores, best of luck!

[Anonymous]

Good Morning.

Its listed in both sections. My scores are low because we dont have open trade lines<except car payment>. No Credit cards! Friday I had to go to several places to get secured cards for each of us which we did. Also he was able to get a secured personal loan as well. LO said that should help fast.

[WannaHouse]

Make SURE..positively for sure you do not pay anything late from this day on. Use your CC's like cash. Fill up vehicles, pay off in a couple days. Keep doing that and pay off right away..(within a week or two) Pay the personal loan a few days in advance, or set up auto payments right out of a checking account so you are NEVER late.

Anything 2 yrs or older do NOT touch. Anything newer, you can check with the "rebuilding your credit" forum to make sure you do everything right.

These things should get your scores up to "housebuying" scores!!

Good Luck 

[Anonymous]

One thing. If I read this right, you were late 11 times in a row on your car payment starting Jan 08.  That is what is killing your scores.  It will be very hard to raise your scores much in the next 6-9 months without getting those removed.  Auto companies will sometimes take GW letters, but in most cases where they do it is after a prolonged period of on time payments.  They want to make sure you are back on track for awhile before they agree to help.

So, from what I see,  you need to wait until the tax lien is removed, the lates age out a little bit or are removed, and the new accounts age.  Your LO may be able to push it through underwriting, but 11 lates in the past year (if they are showing as 30 day lates)i s really hard to get over and that couple with no recent positive tradelines that show 12 months history.  Also, all the old accounts (although they are correct in telling you not to mess with them) still will be counted against you as a pattern of non payment when it goes to UW.  It is not impossible, but It will be very hard to get an approval for this any time soon without either a lrage down payment or major reserves (neither of which have been mentioned)  I wish you the best of luck, but with all that hangin over you, your best bet may be to spend then next 6 months working on these old debts not a new house.

[Anonymous]

My car payment is through capital One. I have the GW already written, just waiting to see if LO wants me to send it. I got behind back in Jan 08 when I lost my job. Once I got another we immediately started paying agan we just couldnt catch it up. Hopefully since we were making payments every month like clock work will go along way in helping us.