I'm hoping someone can let me know if my plan is actually realistic or if I need a reality check that it's not gonna happen for me.
I'm currently rebuilding my credit. I started a new job just before the whole world went into lockdown, and the work they brought me on to do dried up pretty quickly, so I was out of work for awhile. Debts built up and I didn't have sufficient income to cover them all, so they all became delinquent and were eventually CO.
I finally started working again in May 21. With my bonus in Jan 22, I was able to immediately settle 3 of the 6 charge offs, then a 4th in June, the 5th this month, and the last one will be settled by the end of next month.
- SoFi- $27,832 settled for $13,800
- CitiCard - $16,855 settled for $6,743
- Synchrony - $10,962 settled for $4,384
- Upstart - $9,486 settled for $4,200
- Best Buy/Citi - $4,383 settled for $2,100
The only one left unpaid is my Cap1, which is the one I'm settling next month
- Cap1 - $25,415 settling for $15,000
The SoFi and Cap1 cards have been reporting as late or CO every month for a year and half now. The SoFi should stop now and Cap1 should stop after next month, but a lot of negative marks that are recent.
I opened a few secured cards, but only ones that don't do a hard credit pull, so no new inquiries. Only one of them carries a small balance
- AmEx: $1,000 CL (my oldest card and the only one that I didn't let go deliquent or close)
- Sable Secured: $200 CL
- WSFS: reports as $1,500 CL with 1% balance
- OpenSky: $200 CL
The last 3 were all opened in Jan this year.
I also have student loans and a car loan with no lates. The student loans have helped with the age of my accounts. I'm also having my rent reported on my credit going back a few years with no lates
My credit scores have improved quite a bit. For the FICO 2, 4, and 5, I'm currently sitting at:
- EX: 610
- EQ: 619
- TU: 566 (not sure why such a difference with this one)
I'm hoping to purchase a home next year. It would be an FHA loan and I could save enough to cover 3.5% DP, closing costs, and MIP. I make a low 6 figure salary, not including bonus, and only have my car note and student loan payments, so my DTI is good.
Is this doable? With all of the COs paid, is it likely I'd see enough of a bump in credit score to get approved? I know FHA says it accepts credit scores as low as 580, but will the fairly recent COs be a dealbreaker? Is there something more I could be doing that would help?
Also, if you know of a good FHA lender in TX that would be willing to work with me given the above, I'm open to all suggestions.
Any thoughts would be very highly appreciated!
