im to waiting on a FHA loan approval all i put down was 3%, i have charge off's too, but the been paid off 2 years ago. so im hopeing my loan get's approved, my loan officer said i have a excellent ratio, Is that good? this waiting process is killing me.. Ed
I closed on a FHA loan three weeks ago. I went through a bank but my loan has been sold to Homeside lending as of the closing date. I have horrible credit, but basically spotless for the past 2 years, and had 2 accounts on my credit that weren't mine that were deleted. I have two paid charge offs that just wont come off! My husband's is worse than mine, but I purchased only in my name. I had to write explanation letters for a BK from 94, and why I was late any time before 2 years ago. My scores (havent changed much despite these deletions) for the mortgage were 585 (Emperica), 583 (Fair Issac), and 581 (Beacon). I was offered a prime rate of 6.5% with 3% down. I feel lucky, because I still can't get a credit card! Maybe having the mortgage will help out...... I guess I am just sharing this because my friend purchased a home a year ago through a mortgage broker, and she had so many fees, the interest rate is through the roof, and since she has been late she can't refinance yet. She says now that she wished she too had gone through a bank, because the City financed her closing costs and the payment on THAT is almost $100 a month. It has proven to be a much more expensive option, which she cries about a lot. My realtor was very helpful, she suggested I approach a bank when I thought I would be stuck with a broker (one broker told me I would have to come up with 10% down and have a 10.5% interest rate!) I took my credit report to the banks she suggested and everything worked out fine with the second one. I think my air of confidence also worked out, you couldnt have TOLD me I had bad credit! I would explore all my options and be confident!
I closed on my mortgage today. I went FHA with 2.8% down. The scores I received with my loan documents were TU=666 EX=621 EQ=641. The EQ score is similar to what I get online but the other two are very different. I had to pay off a couple of small collections. I think what also helped me is that I have been at my job for 10 years.
Tsaul...I thought the same thing & I'm no expert either. I guess it depends on the mortgage company/mortage broker. We also thought the collections/charge-offs would need to be paid first. We were prepared to pay them prior to approval. All we needed to do was explain what they were & that was it. I showed proof that 2 collections on my husband's report were being disputed for the last few months. I also was able to prove the collection on my report was re-aged by the collector, I had old reports as far back as 2000 as proof. My broker told us that the overall picture is considered, not just the credit. We've lived in our apartment for 6 years, never been late on the rent. We have credit cards that have never been late, car payment that has never been late, have a decent income, hubby has 5 + years on his job, 4/12 on mine. Not sure how it was done but belive me, it was done. I close on 3/27.
Adding my late 2 cents: Applied in January, I have perfect credit history since April of 00. Fiance's credit, his is spotless! We received 7% rate with 3% down FHA.
folide- In the previous post you wrote: TU = 750 - up 245pts since1/5 Are you saying that your TU score went up 245 points since January 5th? Can you detail the actions you went through to get this improvement?
You are definitely an inspiration to me. My scores are similiar, however I have some chargeoffs that just will not die. Hopefully when I get those taken care of, my perfect history since 12/2000 will help my family and I get the home we deserve.
Maybe I just live in the wrong area. I have five years on my job, making close to $60,000/year. I have lived in the same apartment for four years, my previous apartment for 3 1/2 years. But the bank that I applied said that the charge offs were what were standing in my way. Also, I had several disputes in progress at the time. The mortgage originator that took my application told me that I was denied, but the funny thing is I still have not gotten a letter officially saying why I didn't get the loan. I don't deny the fact that I have some dings on my report. The biggest thing that she said was the problem was the recent late on my Providian credit card. I explained to the lady that the payment history was wrong, but to her, it wasn't proof. I even offered to provide money order receipts of all payments that I made, but no dice. It seemed that they were really concerned with going by the credit report, but after disputing the credit card with the bureaus, all of a sudden my status was changed from 2 30 day lates to open/never late. And the collection account that was put on my report was deleted from all three bureaus.
Tsaul....I'd recommend going to another bank. Get a 2nd opinion. Don't just take "that" particular banks word. There may be another bank that would be willing to work with you. And definitely don't give up...we NEVER thought we'd be able to get a house. Good luck.
In case anyone's interested...I just got pre-approval from Wells Fargo for 175k, FHA, 3% down, 30-year fixed at 7.5%. My mortgage scores were (are): EQ 607; EX 599 (585 CreditExpert); TU 637 (565 TU web report score). Just thought I'd share... wajaba
That's great wajaba! If you don't mind me asking, how's your debt load and salary? You don't have to be specific....a range would be great though. I'm looking to get approved for 193k.
Shantel, Right now, our debt load is just over 14k, with 12k of that being the car, and roughly 2k of it with credit cards. My wife isn't working right now (just had twins not too long ago), but I'm currently bringing in ~65k / yr. 175k was the upper limit that I gave to the rep on the phone, although he said that I probably would have qualified for more. Good luck on your house hunting... wajaba
