Need a little Motivation

[Anonymous]

I've been working for the past few months to up my credit score in hopes of buying a home. When I first started, my FICO 2 score was 544. About a month later, it went up a bit to 556. Today my Experian FICO 2 score is a 611. I am happy with tge jumps, but it seems like now I just need some time to see it rise. Would I have a chance to qualify for a mortgage with my current 611 score?

[NC_Mtg_Loaner]

Well, it's not only about credit score, but if you have steady and stable employment, money for down payment and closing costs and can fit the purchase into your DTI, i'm sure you could qualify for a mortgage loan.

[homeloanexpert]

Good going on bring up your scores so far. To answer your question, for a FHA loan, we require at least a 550 for a 3.5% down payment and a 500  with an increased 10% down  payment. So you're good there. With a less than 620 score, the interest rate will be slightly higher but you still decent. But you can still buy now as long as you income qualify. Hope this helps.

Keep up the good work!

[Anonymous]

I am hopeful and patient! I have a decent amount for down payment and closing and stable employment and income. Just trying to get my utilization down lower, currently at 13 %. I was concerned when I paid off 2 collections and a charge off, because they did not grant me a Pay for Delete, but my score increased. So time will be my best bet to get my score up higher.
I am looking for a fixer upper for sure, so I am also unsure of how the loan process will be for a house that needs repairs. Cosmetically, I know I can fix up myself, but my price range deferrs me from buying a house that has already been updated, so that is another obstacle to have to go through. But, I have high hopes to find a forever home soon!

[CreditInspired]

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@homeloanexpert wrote:

Good going on bring up your scores so far. To answer your question, for a FHA loan, we require at least a 550 for a 3.5% down payment and a 500  with an increased 10% down  payment. So you're good there. With a less than 620 score, the interest rate will be slightly higher but you still decent. But you can still buy now as long as you income qualify. Hope this helps.

Keep up the good work!

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And I want to add that the PMI would be higher too.

OP, it may be slow going but with patience and continued diligence, I suggest waiting for your scores to get a little better so you can qualify for better APR and PMI rates. 

What is your DTI?

[CreditInspired]

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@Anonymous wrote:
I am hopeful and patient! I have a decent amount for down payment and closing and stable employment and income. Just trying to get my utilization down lower, currently at 13 %. I was concerned when I paid off 2 collections and a charge off, because they did not grant me a Pay for Delete, but my score increased. So time will be my best bet to get my score up higher.
I am looking for a fixer upper for sure, so I am also unsure of how the loan process will be for a house that needs repairs. Cosmetically, I know I can fix up myself, but my price range deferrs me from buying a house that has already been updated, so that is another obstacle to have to go through. But, I have high hopes to find a forever home soon!

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Hi OP and I meant to say welcome to MyFICO earlier. 

A 203K FHA loan may be an option but I dont know the details.  Here is a link to give you an idea of the requirements and process. Hopefully an expert will come along shortly who can provide more info on fixer uppers. 

https://themortgagereports.com/14946/fha-203k-loan-mortgage-lender-rates

[Anonymous]

I have 175$ Car Payment with a 4,000$ Balance.

Student Loans are deferred, but Total around 30,000$, so I know that will need to be factored in.

Credit One Bank - 30$ balance on a 600$ Credit Limit.
Indigo - 0$ Balance on a 300$ Credit Limit.
Fingerhut - 0$ Balance on a 300$ Credit Limit.
Academy Sports - 0$ Balance on a 350$ Credit Limit.
I am an authorized user on a Citi Bank card, 60$ Balance on a 12,000$ Credit Limit, but it has not reported yet.

I just paid all collections and charge offs.

My Income is 3000$ monthly before taxes.

But I do not know how to calculate DTI.

[homeloanexpert]

Kthomas40...

 I =  Income

H = House Payment

D = Debt

Top Ratio - H divided into I

Bottom Ratio (commonly referred to as DTI) = H + D divided into I

[CreditInspired]

Okay you’re looking good even if I were to use 1% of student loan ($300). Your total monthly revolving debt would be $505. So you divide that by your monthy gross income of $3K.  FHA debt ratio is 31%/43% frontend/backend. So your mortgage payment shouldn’t exceed $930/month and mortgage plus monthly debt shouldnt exceed $1,290/mo. FHA does allow backend to 50% with great scores and/or other compensating factors. 

To make sure we’re on the right track, are there any other loans, court ordered payments, IRS installment plan, judgment, liens, etc.?

[Anonymous]

Nothing else! Just collections on my report that are paid in full. I couldn't get a Pay for Delete on all of them, so just waiting for them to fall off, which will be a couple of years
But no, no other payments.