Need Mortgage Advice

[Anonymous]

Hi!  I have been a member of my fico for several months and I am getting hoping to buy a home in a year.  I would like to find out if that is possible with my situation. Sorry for the long winded post I wanted to cover everything.

I like a lot of people make stupid credit decisions and I have I believe 8 collections.  All together they total about 5,000.  They are mostly with Portfolio so a pay for delete is not an option.  I thought they were falling off in 2017 but I got a copy of my credit report and sadly they do not fall off until July to the end of 2018.  So when I am ready to buy in December of 2017 they will have about 8 months left on my credit report. 

I have not had a late payment in 3 years.  I just purchased a new car.  I have bank cards and store cards.  I am paying off the ones I have balances on.

I am currenly in a 2 year lease that ends in October that I pay $975.00, I have a 2 year perfect rental history.  When my lease is up in Ocober I was hoping to move home for that year before I buy and save a lot of money around $20,000 to have a down payment.

My scores now are 644/647/652  Mortgage FICO's are a little lower by my middle is 620 currently.   I make 63,000 a year and I have been at my job for 11 years.

So my questions are:

Will it hurt me moving home for a year with no rent as long as I have the 2 years of strong rental history?

Will I have a chance to buy with the 8 collections still reporting for another 8 months when I am ready for a loan but will have a 4 year pefect pay history since?

Thanks so much for your help I am so blessed to have found this forum!

[Anonymous]

Nobody has any advice?

[RonM21]

Knowing the collections will.still.be there, I would do your best to make sure you at least pay what you owe so that they show paid. Then, any credit you have, get the utilization down to move scores up a bit. More or less, I'm saying try to have as much going for you to counter the collections being there.

Also, moving home can probably help you. Does your rental history report?

[Anonymous]

Thank you so much for your reply RM21.  My rental history does not report but I have a lease and cancelled checks and my landlord is great so they would completed anything needed  as I have heard you can have your landlord fill out some time of rental history form.

Ok I wasn't sure if paying them off mattered so I will definately do that.  Do they need to be paid in full or would it be just as good to show a settlement at this point?  Thanks!

I have been reading a lot and have heard that you can have older colletions with an FHA loan so I am hoping that is my case as well.

[Anonymous]

Sorry I mean I have heard that you can have older colletions with a USDA loan.  Which the area I want to buy in is elgible for.

[Anonymous]

It really depends on your lender's overlays and the results of automated underwriting. It's not always black and white, and I'd recommend to meet with a lender so they can evaluate your file as a whole. It is absolutely possible to obtain a mortgage with collections reporting though.