Need Mortgage sooner than I thought!!

[Anonymous]

Hello,

Is there any hope that I might be able to get approved for something sooner?


So I was completely content rebuilding my credit and waiting up to 2 years to apply for a conventional loan and keep adding to my bank account, etc, but now something has come up and I need to find a way to do this sooner.

I have a current mortgage and will try to get this house on the market asap.

I know I need to bring my score up and have added some new accounts to garden to help with this, but I thought I had A LOT more time. I have the down payment for a new mortgage, but I just recently got a new job and I had a year of lates on my current mortage. 

Everything, including my mortage is now current for the past 2 months and everything else on my CR is paid.

I have a paid Judgment and one $50 paid medical collection. The rest of my negative stuff is previous late payments and a year of late payments on my mortage because of job loss. 

I have a new job making $80K plus a year.  Everything is current now. 

Thanks for your input.

[Lemmus]

...really need a lot more info from you ...for instance, a new job is one thing but do you have 2 years of prior employment history, its not clear ...you say you have a down payment but you dont mention an amount, percentage, or your intended purchase range ...the 602 score you cite, is it Fico 04, 08, or FAKO? ...it matters ...there are lenders who will go with a Fico 04/580 but a Fico 08/602 is a different matter ...what is your market area and why the sudden urgency ...etc, etc ...the more info you can provide the more likely it is you will get a quality answer from the gurus here ...hth

[Anonymous]

Thank you for your input.

Just started my new job; salaried at 82K; new job, but not new to field, this was a 12K increase in salary from my previous postion. 

10 year employment history in my field.

My 602 is from My Fico; middle score.

I have enough saved for 20% down, but would prefer to put down 5% because I will still need closing costs and like having

an emergency fund since I have no credit cards to use in the event of an emergency.

I am looking for something in the $250K range. I could get an older 1960-ish ranch house at the $250K range in my area. Was previously looking to build with my husband. We have a combined income of $144K, so we were looking at more expensive housing/new construction, but that is no longer happening.

The urgency is that my husband will be enjoying a new life with a woman he works with.

Here is another big lesson I learned; being in a situation where I have no CHOICES because of how I handled my credit in the past.

Do you think there is a chance in a few months that I could qualify for an FHA in spite of my late mortgage payments? I know its a long shot, but just wanting to see what soemone else may think. Thank you.

[Lemmus]

...I'm no FHA expert by any means but I'd look long and hard at the PMI hit on your long term finances with a 3.5% down payment

...trying not to be sexist here but will probably come off that way anyway ...but if I were in your shoes I'd slow waaaaaaaay down and think things through a bit more

...why do you feel you need to buy a home right now? ...your life is likely to be chaotic enough for a while without the stress involved in the mortgage process, not to mention all the problems that come with home ownership ...find a decent rental or even a share to tide you over for the next year while your life works itself out ...let the landlord worry about the roof leaking ...read the forums here, get your credit ducks in a row, and then start looking for a new home of your own when you can really focus on doing it right

...just my opinion, worth what it cost you ...wish you all the best whatever you decide to do 

[NCGirl]

I agree with Lemmus. It might be better for you to just rent a house for a year. Give yourself time to process what you really want in your next home while your credit scores are rising and your other issues are being resolved.

On a side note, I am really sorry to hear this. But I truly believe that you can rise above what your husband has done and move on to an even better life than you ever thought was possible... just keep your head up and keep pushing forward. I'll be praying for you.

[HiLine]

Sure. Get an FHA loan, pay PMI for a while until you have enough money to bring the loan to value ratio to 80%, then stop paying PMI and possibly refinance the mortgage. Make sure you get a PMI that expires at the 80% threshold.

[Anonymous]

With FHA isn't PMI for the life of the loan now?

[bdhu2001]

I agree with the previous statements.  You need to weigh your situation before you jump into a new home. I've been in a situation similar to yours (previous husband kept saying he was going to leave me, I was worthless, blah blah & would stay gone for days. After hearing it for months-possibly a year, I left.-yes he had another woman).  

Anyway one of his statements was always that I would have nothing and be no where without him; so I know the drive you have to show him, and yourself, that everything you have is based on your hard work and earnings too, but don't set yourself up for failure by taking on more than you can chew.  For me, I moved into an apartment, later got a condo as a lease to own, and then bought a house.  I still own that house, but I recently bought a second home.

Times are harder now, so my suggestion is rent something inexpensive in a good neighborhood.  If the city you live in has room-mate houses or apartments (in San Francisco the owner of houses and buildings rent out all the rooms. Thus you're never stuck paying full rent, because roommate isn't paying or moves out) get one of those.  Save your money and acclimate yourself to the cost of all your other expenses and what your true money is after you pay your bills. This is a new job, thus you can't be sure of your take home pay.

Whatever amount you believe you can afford to pay for a home, put that amount in savings (minus the amount for your rent). To get a true idea, check Zillow and look at estimated monthly costs. If you can do this for 6 months straight, without tapping into the savings you're on the right track. Also you'll be improving your credit score in the interim. Now check your furniture.  Make sure it's furniture you're willing to keep for 1-2 years. Put yourself in a situation that you'll need little to no new furniture in your new home. 

Now you know you can afford the house and won't need to take on unnecessary additional expenses for furniture.  If you have 20% for the down payment, pay the 20% and negotiate for the seller to pay all closing costs etc. If you have owner pay closing cost, then you only have to come up with 20% of closing costs (even if owner simply tacks it onto the price of the home). Ex: closing costs 4k, you come up with $800 more instead of 4k.

[Anonymous]

Thank you everyone for your thoughts and support.

I should have mentioned that the urgency for a new home is more about location.

From a financial perspective, I will be making a unilateral financial move by purchasing a new home. My current mortgage is $1547( taxes escrowed, etc) and I am hoping to buy a similar home in the same (or lower) price range, so that my mortage payment will be the same or lower than my current one. I just wasn't sure if I would qualify with my previous late payments and a low credit score.

I want to put my house on the market because I am surrounded by husband's family and friends....this is his hometown.....my next door neighbor is his best friend who knew and supported his behaviors.

My mother and father in law are down the road along with his 2 sisters, and a handful of other miscellaneous relatives all within a mile or two of each other.  I want to be closer to my job and my family after giving this up to him for years.

The house is in my name and he has one in his, so he is asking nothing from me. I have always paid my own mortgage. He is not opposed to me selling. I anticipate about $20K in equity that I should get when I sell. 

Just wondering if anyone thought I might have a shot with an FHA at least by spring or summer time. I was thinking I could always refinance to a conventional down the road and avoid PMI later when I have better scores and a payment history. I realize that my house might take some time to sell, so that is always a factor, but just wanting general thoughts.

I am also paying a 6.875% interest rate on my current mortage. I had an adjustable rate mortgage that was great for many years, but yep......it adjusted.

Thanks again!

[bdhu2001]

One of the mortgage guys would be better, but I found this http://themortgagereports.com/14466/fha-credit-score-minimum-approval-mortgage-rates on the Internet. If I'm understanding correctly, your new job is still in the same town but you want to move further from your current address. That doesn't preclude renting a new place and saving. However, if your set on getting a new house, the article I found states that it's possible.  Remember that most scores provided are FICO 08 scores, but mortgage is based on your FICO 04 scores.  For people seeking mortgages the 04 score has been  50+ lower.

 You've already mentioned that you'll need to sell your house to get the down payment so I guess selling your current house would be the first step since you don't like the neighborhood that you currently live in.  You can attempt to buy contingent upon you selling your home; but if there are other offers, your offer will be less attractive.  Good luck with your house journey.