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Credit. Scores TU627, EQ634, EX605 – No plans to app until 04/13, when most recent late hits 1 yr mark. Plan in meantime is to pay down debt (approx 62% util) to increase scores, as well as have some derogs removed.
Positives-Never Lates
Type / Opened / Bal / Limit / Util
CC - 06/2008 - $2689 / $3000 / 89%
CC - 10/2008 - $620 / $809/ 76%
CC - 06/2009 - $10 / $320 / 1%
CC - 11/2010 - $6 / $300 / 2%
CC - 05/2012 - $0 / $300 / 0%
CC - 09/2012 - $0 / $500 / 0%
CC - 09/2012 - $0 / $200 / 0%
Loan - 05/2012 - $2936 / $3103 / 94%
Loan - 06/2008 - $6k - closed/never late/pd in full
CC - 10/2008 - $0 closed/never late/pd in full
CC - 06/2008 - $0 closed/never late/pd in full
CC - 10/2008- $0 closed/never late/pd in full
Loan - 05/2003 - $1k - closed/never late/pd in full
Negatives
Late Payments
Santander Auto Loan – Opened 04/2010 Bal $13780 – Five (5) 30 day lates in 2 yrs, 03/12, 11/11, 10/11, 9/11, 6/11. Reporting Current/Paying as agreed now.
KDs
Paid Collection –$300 – Date added 09/11 - PFD accepted/removed est 10/18/12
Paid Collection – $300 – Date added 02/11 - PFD accepted to be removed 10/18/12
Unpaid Collection – Utilities- $331 Send PFD. Date added 02/11
Unpaid Collection – Medical $312 – Date added 09/10
Unpaid Collection – Utilities $195 – Send pfd – Date added 08/10
Unpaid Collection – Medical $260 – Send PFD Date added 04/07
Paid Chargeoff - $0 – DOFD 12/06
Unpaid Chargeoff - $0 - DOFD 01/06
I'm not an expert, but just from my experience that recent late payment is most likely going to be automatic denial for FHA loan. In my opinion I would take the next 6 months to pay down the balances on your credit cards, this would give you a score bump. Hopefully the collections will accept your PFD =) I started 2 years ago with a 580 score, 16 collections, 90% utilization on my credit cards. I'm now at 3% utilization, 2 paid collections that won't budge with goodwills, and a 712 score. I say work at it for 6 months and you will be in a much better position for approval! Good luck =)
I did say that I wasn't planning on app'ing until my most recent late hit the 1 yr mark, which is an FHA requirement..
And your story is exactly where I expect to be this time next year as well!
On a side note, my dad lives in Alameda County. Love it there!
@jdirilo wrote:On a side note, my dad lives in Alameda County. Love it there!
Me too.
I think you would have to be prepared to write LOE for your lates and collections. You have quite a few and your underwriter will definitely have questions about those.
The price of the house you are looking for also appears to be a little high for your income.
Your plan for paying down your debt and waiting until your lates are older sounds great. Good luck!
Thanks Aussie!
i dont know anything about taxes/insurance there.... so i cannot comment on det ratios.
but when the lates are 1yr old, you will be fine.
i would wnt a good letter explaining(loe) the past derogatories.
letter format:
1. what happened?
2. how did you deal with it?
3. what steps have you taken to assure it doesnt happen again.
the loe will want to match the credit report.