Hello Question and Some Help needed :-)

[Anonymous]

I know this probably isn't the right place to ask or it is who knows.  My SO and I are currently looking to buy a house, and we are working with a financer at the moment.  The problem that we are having is that my SO has an okay score 680+ but his debt to income is bad, he grosses about 2400 a month and his debt is 400 a month.  I gross about the same per month, the issue that we are having is that my credit is not good, my ex is 557, my eq is 578 and my trans is 613, as of right now the financer stated that they will not accept my credit.  The issue that I have is that the reasoning behind my credit score is medical bills in collection and my student loans.  Now the story with my student loans is that they are currently in deferment I am in a doctoral program I am not going to be out of school for another 2 years, I have consistantly paid all of my other debt on time, the last thing is that, I am making payments toward all of my medical bills and have been sincec May of 12, what am i doing wrong and how can i get my credit score up???

Any help would be appreciated!!

[llecs]

---

@Anonymous wrote:

I know this probably isn't the right place to ask or it is who knows.  My SO and I are currently looking to buy a house, and we are working with a financer at the moment.  The problem that we are having is that my SO has an okay score 680+ but his debt to income is bad, he grosses about 2400 a month and his debt is 400 a month.  I gross about the same per month, the issue that we are having is that my credit is not good, my ex is 557, my eq is 578 and my trans is 613, as of right now the financer stated that they will not accept my credit.  The issue that I have is that the reasoning behind my credit score is medical bills in collection and my student loans.  Now the story with my student loans is that they are currently in deferment I am in a doctoral program I am not going to be out of school for another 2 years, I have consistantly paid all of my other debt on time, the last thing is that, I am making payments toward all of my medical bills and have been sincec May of 12, what am i doing wrong and how can i get my credit score up???

Any help would be appreciated!!

---

Welcome!

Your lender would require higher scores assuming you were also going to be on the mortgage. Student loans by themselves aren't bad if they aren't reporting any lates. Perhaps your lender meant to include that adding you and your loans would push your combined DTI too high. Even though they are in deferment, they still have to be included into the DTI because they have to be paid on eventually.

Are the medical bills reporting? If so, these would probably be listed as a collection agency (or agencies). Paying on them will not help your FICO score or credit. Lenders don't want them reporting at all. If I had that, I would continue to make payments if you are in a payment plan (lest you default) but offer them a PFD agreement (search in here for examples). If they agree in writing, then pay off the medical debt and the collection agency will delete and that could increase your FICO scores. If the medical bills are not reporting, then ignore all of this (but certainly pay them ASAP).

[Anonymous]

+1. As far as the student loans though, i thought they werent taken into account if you would be in deferement for a certain length of time (12 months for FHA). You said that you would be in-school deferment for 2 more years; that seems like that should be sufficient. Otherwise, the loan officer takes a certain percentage of outstanding studentl loan debt to estimate payment each month (i think it's like 3%). Of course, the estimated payment amount will probably be higher that the real amount because there are so many repayment options, including, ICR and IBR. I would try  pay-for-deletions of the medical collections to get them off. I think that in general medical CAs are more receptive to pfds. I personally have two med CAs on my CR, one of which has already agreed to pfd, and the other I am confident will also do so because of positive responses I have read regarding them. But I digress... do you have any other reporting tradelines other than the SLs and CAs? If not, you need to get some Revolving TLs reporting to get that score up as 35% pf FICO is payment hx and 30 % is utilization (best to keep it between 1-9%).

[Anonymous]

You are correct that the student loans okay if they are in deferment for 12 months for FHA guidelines, I will be in school for much longer than that, also the medical bills are reporting as late payments for the last 12 months which is wierd because I have been paying on them, but I have disputes for all of them so maybe they will fall off here is to hoping :-), I have 3 credit cards that are reporting balances right now so I have to get those down.  My medical bills total 1797, so do you think that they could do like a settlement or something on the debt or am i just better off paying the full balance any thoughts are appreciated!! :-)

[Anonymous]

You could try to offer a settlement for pfd. Some will bite, but I think that paying in full goes a longer way when asking for pfd. 1700 is a lot; try settlement pfd offer; they may counter or decline. if that fails, try to PIF for pfd. 

[llecs]

Good to know on the SLs. Thanks.