Mortgage Pr-approval

[Anonymous]

Hello all, 

This is my first post and am new to the MyFico platform. I'm currently trying to qualify for a mortgage and have had a student loan which was previously deffered report as 90 days late. This dropped my credit score 100 point in January of this year. I've since been able to rebound and pull my scores up to 654, 674 and 617. By contacting Fed Loan and create an account with them which is now paid as agreed (Current).  I know lenders typicaly use the median score from Fico 2,4 and 5. I also have had late payments on my current mortgage of 30 and 60 days late most recent late for the current mortgage was 2/2019. I've been told you need to be atleast a year without any lates to any current mortgage. The undelying issuses that caused these lates is my wife had a battle with cancer and we were going through a hard time finacialy while she was going through treatment. Fortunatly I can say she has been cancer free for 14 months. My question is will the lates to our current mortgage and the Fed Loan late restrict me from getting a new mortgage. Our dept to income is under 30% as suggested by everyone I've spoken to.

[donkort]

Welcome to the Forums.

The score used by the mortgage provider would be the middle score of the spouse with the lower credit scores. 

You are able to get your FICO 2, 4,  and 5 scores through MYFICO---but you would have to pay for all three reports. 

It's been a year since your last mortgage late---so that's good.  Those lates, however, are keeping your scores down. 

During the underwriting process, you will probably be asked to write a "letter of explanation" for why you incurred the lates.  I would believe that the Loan Officer would be sympathetic. 

I'm sorry you had gone through this battle with cancer.  But I'm glad there's been no cancer for 14 months. 

If the scores you mentioned are the 5, 4, and 2 scores, then the middle score would be 654---enough to qualify for a conventional mortgage from quite a few mortgage providers.  Usually, a minimum of 620 is required for approval for such a mortgage.

You would certainly qualify for an FHA mortgage---where your interest rate would be unrelated to your credit score.  The minimum is 580, though some mortgage companies want higher than that.   You would be eligible for a 3.5% downpayment.  You would have to pay mortgage insurance for approximately 6-7 years, though.  Then again, if your downpayment is 20% or under for a conventional mortgage, you would have to pay mortgage insurance for a period of time, too.

Are the student loan lates still reporting?  Or is the entire account "paid as agreed?"

[Anonymous]

Thank you for your response. The situation with the student loans is totally my fault I had them defered and was paying a third party who I thought were sending those funds towards my student loans. The reality is I was only paying this third party to do the paperwork for the deferment. When I contacte Fed Loan they set up a payment plan and now those loans are still reporting current but the lates are still reportingon my CR. 

[Anonymous]

Sorry didn't answer your question. All of he studend loans are owned by Fed Loan now and are showing as "Current paid as agreed"

[Anonymous]

To purchase those scores, you would do the one time report for 59.99 on this site?

[donkort]

Yep.  There's no other way.  You have to, either, order the 3 reports separately, or together.  They cost the same, including tax.

Does that mean, OP, that the student loans are both reporting your past lates, and reporting "paid as agreed"? 

I've known people who have done student loan rehabilitation and have had the lates deleted.  You might have to write a "letter of explanation" for the student loans, too.

[AllZero]

Free mortgage scores

EX2 + 3 Bureau report for $1 at Experian or CreditCheckTotal (part of Experian). Cancel in 7 days or less to avoid the reoccurring charge.

TU4 WyHy quarterly score. Not sure on membership requirement. Maybe hard pull TU?

EQ5 Get a savings account with DCU. Soft pull EQ to be a member. Free monthly score.

[donkort]

I don't believe "letters of explanation" are that big a deal.

I had to write a few----and I had a report with no collections and no lates.   711 middle score.  High credit card utilization, though.

You have to tell the truth, though----otherwise, it's mortgage fraud.