So much has improved but not quite there...HELP!

[apay]

I'd like to apply for FHA loan for first time home purchase by June this year.  My score is sitting around 609 on Credit sesame (which is what I've seen is closest to what mortgage lenders look at).  Here's what I have...

$3816 in collection accounts (about $1800 is medical), willing to do PFD if it helps

$45,748 in student loans (some lates from years ago, hoping they fall off soon)--currently deferred status

$33,000 Ford Motor Credit Auto Loan

$22,000 Wells Fargo Auto Loan

$1000 Capital One Secured

$1000 Fingerhut

15 inquiries ( I know this is awful but it's from me trying to get good things going for score improvement)

Just applied for Credit One and was approved for $400 card (unsecured) subject to identification verifcation?

Any ideas on how I can get score up?  Looks like the suggestion is at least 620 but 640 is best for FHA loan.

Any idea of lenders I should or could get approved with?

Any idea of how long it takes to fall off, or how much my inquires are affecting score?

Should I pay collections?  Even Medical?

ANY advice would be MUCH appreciated:-)

[Anonymous]

First, in terms of who will approve you where you stand now, I have been told some lenders will go as low as 500's credit scores but you need a hefty down pmt. 620 is a magic number also. In regard to some of your issues, student loans lates, goodwill letter might do the trick. For medical- google HIPPA medical collections. People have had success with that method. Inquiries. STOP!!! 15 makes you look like you are trying too hard to get credit. Let what you have age and grow and look pretty with on time payments. I cannot say it will get you where you want to be by June but the only way to beat failure is effort.

[Anonymous]

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@apay wrote:

I'd like to apply for FHA loan for first time home purchase by June this year.  My score is sitting around 609 on Credit sesame (which is what I've seen is closest to what mortgage lenders look at).  Here's what I have...Don't go by Creditsesame, it has me more than 50 points above what my lender pull was a month ago - 607 vs 550.

$3816 in collection accounts (about $1800 is medical), willing to do PFD if it helps Work on  the most current for best score result

$45,748 in student loans (some lates from years ago, hoping they fall off soon)--currently deferred status

$33,000 Ford Motor Credit Auto Loan

$22,000 Wells Fargo Auto Loan

$1000 Capital One Secured Balance?

$1000 Fingerhut  Balance?

15 inquiries ( I know this is awful but it's from me trying to get good things going for score improvement) Inquiries are only 10% of your score - not a huge worry.

Just applied for Credit One and was approved for $400 card (unsecured) subject to identification verifcation?

Any ideas on how I can get score up?  Looks like the suggestion is at least 620 but 640 is best for FHA loan. Keep revolving balances below 10% of CL

Any idea of lenders I should or could get approved with?

Any idea of how long it takes to fall off, or how much my inquires are affecting score? Almost no impact after 12 months, fall off at 24 months, only a small part of your score.

Should I pay collections?  Even Medical? Lenders may let small collections slide, but usually want big ones paid. Most important is to show 12-24 months of good payment history.

ANY advice would be MUCH appreciated:-)

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[Anonymous]

Wait until a couple of inquiries age off, then go to a broker and have them do a REAL lender pull to see where you are sitting. You CANNOT rely on any FAKOs or even the FICOs from here - there is far too much variation.

[Anonymous]

I'm going to go Suzy orman on you. I don't think you can afford it.  Almost $55,000 in auto loans is Insane. With that low of a score you are paying interest out the wahzo. All that interest if you got cheaper cars could go to debts like student loans which would help bring your debt to income ratio down which would bring your score up. First thing I suggest is cheaper cars and use that money to go to debts. Open up a few more trade lines as well in credit cards. You don't have enough. We to are also going for a fha loan and most start at 680 now, not 640. Not to mention the higher the score the less interest. A 740 score could be $1000 a month payment ,where a 640-680 could be $1300+ a month.

[RobertEG]

PFD the unpaid collections.

Any unpaid collections may, regardless of your score, be required to be paid before loan approval, so I would address before being required to do so.

[Anonymous]

I agree with Tatoo Goddess. You are in about 100k in debt, and unless you have the salary to offset it, you may not qualify for a home loan. 

Agree with first poster- PFD on the collections that are the most recent, as they have the most affect on your score.

Thats a small amount of collections, so hopefully in June you will see a nice bump in your score. 

Good Luck!

[Anonymous]

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@Anonymous wrote:

I'm going to go Suzy orman on you. I don't think you can afford it.  Almost $55,000 in auto loans is Insane. With that low of a score you are paying interest out the wahzo. All that interest if you got cheaper cars could go to debts like student loans which would help bring your debt to income ratio down which would bring your score up. First thing I suggest is cheaper cars and use that money to go to debts. Open up a few more trade lines as well in credit cards. You don't have enough. We to are also going for a fha loan and most start at 680 now, not 640. Not to mention the higher the score the less interest. A 740 score could be $1000 a month payment ,where a 640-680 could be $1300+ a month.

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I would not make such an assumption outright, based on what info has been given, without knowing what the OPs current income is. Current income could very well be in the 100K+ range, making the auto loans affordable.

We need to know "the rest of the story"...

[cabner]

I've been working with a mortgage broker too. She told me to not worry about the medical collections, get any other collection paid off, and to lower my utilization. I had 1300 in non medical collections and 4500 in medical collections. I've paid 300 from the non medical and have 2 pfd out on the remaining 2 non collections.
I'd seek out a broker to work with if you're wanting to get this done by June. Good Luck to you!!