Morgage lates Do I have a chance??

[Anonymous]

Last year, my job began layoff and hour cuts. Unfortunantly I was included in the hour cuts. As a result, I was unable to pay my morgage ln time. I entered into a payment plan that divided that month into 3 payments. Long story short, I have 5 "30 days lates" before I was able to catch up.
I've been promoted in my job to a more stable position in which that will never happen again.
Now I'm working on fixing my credit so that I can buy a new home closer to my job. With a credit score of 600 and 5 mortgage lates, do I still have a chance???

[CreditInspired]

It appears the lates were in last 12 months so yes it would be a problem.

What is your middle FICO score?

And, unfortunately, losing one’s job can happen again.

[BoothwynAP]

I am in the same boat. I had 6 lates in 2017. 1 in Jan 2018. 

I have to wait until Jan 2019 to apply for Mortgage.  In the mean time, accepted offer in March 2018, we sold the house in May 2018, put the proceeds in a 6 month CD, and renting for a year closer to both of our works. (spouse and 2 kids)

We thought the experience was going to stink, but honestly it was the best move we could have made.  Saved a TON more with a rental for a year, a bit of a financial reset, and ready to make some great financial moves moving forward.  Credit scores jumped from 600 to 720 within the 10 months or so and zero debt.  Besides proceeds, we are projected to save another 20K with a rental less than previous mortgage. 

Starting Jan 1, we'll be looking for houses and have until the end of April 2019 to find one.   Feel free to DM me with any questions. 

If you have equity in current house, sell it in the hot market now, bank the proceeds, take a year to reset and go from there. It works.

[ShanetheMortgageMan]

Congrats on your promotion.  While there are loan programs that can approve someone with five 30-day mortgage lates in the past 12 months and a 600 score, the terms won't be great and you'll need a significant down payment.  To qualify for programs with much better terms (Fannie, Freddie, FHA, VA, etc.) you will likely need to wait until you have a full 12 months of clean credit.  When was the most recent late payment?

[Anonymous]

My most recent late payment was in January 2018. I plan to sell my house in February and start looking for a house to buy soon after.

[Anonymous]

It can definitely happen again! I'm praying that it wont. Middle fico score 602.

[BoothwynAP]

You may have to wait until Jan 2019. I would talk to a LO/Broker and lay it all out and get some solid advice. 

[Anonymous]

The same for me except I had one less in 2017. So 5 lates in 2017 and 1 in January 2018.

I was thinking to put the house on the market in January. Possibly next month. We plan to get about 50,000 from that, possibly more.

January will be 12 months for us, which means we have a chance of qualifying for a new morgage?

Thank you for all your help. My notifications was off. Wasn't aware that anyone responded!

[Anonymous]

Okay, thank you for the help. Is that the same route you're going? .. just curious.

[BoothwynAP]

Jan 2019 will be here before we know it.  Get all your ducks lined up. Reduce debt as much as possible.   Get a firm understanding of your credit scores. Get all of your paperwork ready in PDF format.  Get a relationship developed with a LO.