Please Help!!!! I have learned so much on this wonderful Forum. I feel like I am at a standstill and would appreciate anyone with extensive knowledge in the Mortgage industry to give me some insight. I have included as much info as I think is pertinent but certainly willing to share more if requested.
So many questions and scared to death. Just started building a $750K house that will be finished in May. Gave builder $60K to start so we are in this.
A Little Background...
Started out October 2016 with a mid-score of 568 after selling our house and moving into a rental while we feverishly worked on our credit. I worked on it for 6 months until I felt like I did as much as I was able to, then flipped it to a well-known Credit Repair Law Firm with minimal results. One month ago paid a local firm to see what they could do. This week they were able to get a 4 yr old paid judgement deleted off Experian & TransUnion although I haven't seen a bump in score.
Here is what we need:
$425,000 First Mortgage
$100,000 Second Mortgage (jumbo)
$225,000 Down Payment
My husbands info:
W2 2016 $246K
W2 2017 $290K
W2 2018 $300K estimate
Working for same company for 21 years
His Fico Scores 5,4 & 2 are:
Equifax 647 - midscore
Transunion 651
Experian 608
Q. Do we need to have a mid-score of 665 to qualify for a jumbo? What score would we need to add a $70K pool into the mortgage?
Q. How much cash will we need to have (when we close) in reserves with a Jumbo?
Q. Should we pay the Charge-off's now or wait to see if we have to at closing? We need to raise our score and I feel like we are not going to get them without paying the Creditors and let them start aging again asap. Date of last activity on Charge-off's was 3/2012. We do not have the option to wait until they fall off naturally. The house is already being built. Not the smartest move, but it is what it is.
BIG Q: Here is where the big problems lie...
Ameriprise Charge Off $23,894 (Husband)
Central Financial Control Collection $5,239 (Husband-medical)
Amex Paid Charge Off - Less than full amount (Husband)
Total Past Due: $50,717 (my 6yr old Charge off of $21K is included in the $50K Total Past Due, see below for detail)
Currently renting @ $3,900/month When we close on new house we will have paid 23 on-time rent payments
DTI - I don't know how to figure that out because of charge off's and collections
Auto payments are $1,114/month
Paid Judgement - Just deleted from 2 CRA's, no point increase?
12 Late Payments on last mortgage over 12 years mainly from 2009-2016 (last late on mortgage was 5/2016)
Late Car Payment (only one late car payment was 11/2015)
No Student Loans
No other Debt
Q. Should I be on the mortgage? We are in a Community Property state and he is basically the sole income earner and definitely doesn't need me to qualify financially.
Q. We have a small car loan for our son that is almost paid off ($600 left) Last payment is scheduled for January 2018
Should we go ahead and pay that off now? Will we lose points when that no longer reports?
Q. Should we pay DOWN (not off) our car loans (sort of like SSL loan method) to have a better percentage paid off since his car has only 9 payments made and mine has had only 8 payments made?
Bills are paid before they report every month with about 1% utilization
Amex is paid off twice a month to keep balance low
No late payments on any of these credit cards below;
Husband
Card #1 Amex Rewards Opened 1/2017 (AU from me) paid in full monthly
Card #2 Pentagon FCU Opened 4/2017 (AU from me) $5 balance Credit Limit $50,000
Card #3 Discover It Opened 7/2017 $5 balance Credit Limit $2,500 (secured card for 3 more months)
Card #4 Capital One Opened 7/2012 $5 balance Credit Limit $750 (request to raise limit denied twice in the last 7 months
Q. Is this the correct way to go about the use of the AU card below? Any idea how many points that will give him? Should I become an AU on that card as well if I have to be on the Mortgage?
Becoming an AU on his Father's Capital One card next month ($10,000 Limit) Opened Sept 2013 with a soon-to-be Zero Balance. Only we will use that card until we close on the house and will make monthly payments to Capital One with low utilization & leave a $5.00 balance every month leaving a paper trail for 6 months prior to close.
Inquiries
Will update asap
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My Info:
Equifax 643 - midscore
TransUnion 630
Experian 667
Q. I make about $1,000K /month (20 year work history) my mid score is 646. Do I need to be on the mortgage application? The reason I ask is that I have a $21,584 charge off from Bank of America. The last activity on that account was 3/2012 so I believe it falls off late 2018. Other than that, I have perfect credit. AAoA is about 3.5 years
Card #1 Amex Rewards Opened 1/2017 Pay in full 2X month
Card #2 Pentagon Opened 4/2017 $5 balance Credit Limit $50,000 (not a misprint)
Card #3 Discover Opened 12/2016 $5 balance Credit Limit $2,500
Card #4 Capital One Opened 7/2012( AU from Husband) $5 balance Credit Limit $750
Inquiries
Dec 2016
Jan 2017 - mortgage pull
Feb 2017
March 2017
May 2017
June 2017 - mortgage pull
WILL NOT have any more inquiries until closing
