Not sure what happened with the content of your post, it was:
@eighmygs wrote:
So I would like to purchase a home with my wife in the next 6-12 months. She has excellent credit, I obviously do not. Do you think it's possible to qualify for an fha loan if I lower my utilization ? Or do i have too many negatives to get approved and should try to settle the charged off credit cards? See below fico 8 scores:
equifax: 571
transunion: 616
experian: 572
Issues with my credit are below:
settled auto account for less than balance December 2024
Charged off credit card with a balance of $12,000 - DoFD August 2021
Charged off credit card with a balance of $2,242 - DoFD AUgust 2021
Utilization on my three open credit card accounts will be under 10% next reported month but for the current scores the utilization is 66%
Wife added me as authorized user for a $18,000 limit using less than 30%, not reflected in any scores yet
A 30 Day Late payment will fall off in 5 months
A 90 day Late Payment from oct 2023 in dispute
You'll want to obtain your FICO 5/4/2 scores, as those are the credit scores used in mortgage lending. FICO 8's don't really mean much, but we can glean what your FICO 5/4/2's might look like based on them. If your middle score is between 500-579 then FHA requires a 10% down payment, with a 580+ score then just 3.5% down is required. You should also wait until after the authorized user account has been reported to your credit since hopefully that'll have a positive impact.
The settled automobile account from December 2024 might be the biggest issue. FHA wants to see no new negatives in the past 12 months, so if there were late payments reporting until it was settled 2 months ago then I'd say the odds of you being approved are pretty low.
The $12k and $2,242 charge-offs may also be an issue, as the Date of First Delinquency isn't as important as when they were charged-off. When were each of those charged-off?
When did the 30-day late payment occur that will fall off in 5 months?
What type of account (revolving, installment or mortgage) was the 90-day late payment from October 2023 on?
Have you determined your income will be needed to qualify or will your wife's income be enough?
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