My husband applied for an FHA loan in January. Although he had a bk in 2009 everything looked fine she said she would have no problem getting him a loan. There were a few issues he had to work out but no deal breakers. I will not be on the loan but the loan officer needed to pull my credit since we are in a community property state and my debts count against his income. Prior to her pulling my credit he was pre-qualified for about $170,000. After my credit was pulled we didn't hear from her for a few weeks. I figured the process just takes some time. Finally my husband called down to the office. She was unavailable but we got this email late that afternoon.
Thank you so much for your patience as we have been trying to research a way to help you qualify for a home loan. We have run into a couple of issues that are going to be hard to overcome. With XXX’s credit she has quite a few open collections and charge off accounts. Some of these accounts are still reporting payments and since it is an FHA loan we must use all the non-borrowing spouse’s debt against you. This brings down what you qualify for to about $80,000.
Our suggestion is that you should work with a credit repair company. We recommend a great place called XXX. XXX will need to get the foreclosed mortgage to show a zero balance and get the open charge off and collection accounts taken care of. You will need to get any derogatory accounts showing opened after your BK deleted from your credit. XXXX is showing a 0 balance but it was a derogatory account after the BK, this is a difficult thing to oovercome with an underwriter.
If you are interested in the credit repair, contact XXX at XXX and let him know we sent you. He can request a copy of your credit reports from us directly. The phone number is XXX-XXX-XXX.
Let me know if you have any additional questions or concerns.
I emailed her back but got no response. I'm a little leery of credit repair companies I would rather try to repair my credit myself however I am not sure which of my collection & charge off accounts are still reporting payments. They are the ones I'd like to focus on. How can I tell by looking at my reports? I've read conflicting information regarding collections/charge-offs of the non purchasing spouse. I've already contacted Saxon Mortgage regarding the foreclosure still reporting a balance of $514,000(it's from 12/2008 it was in my name only). Would she be factoring that in what he qualifies for? Including the foreclosure I have $521,245 in debt. I have no judgments no revolving accounts just old collections from 2009. Is she not responding because there is no way he can get a loan or should he look for another loan officer? I'm trying to beat the July 1st FHA deadline so that I don't have to pay the accounts off or be on a payment plan for 3 months.
