Well, this has not been a good week for me. Two weeks ago, I put in two mortgage loan applications with two banks and waited for my results. The first loan was with Union Planters Bank. Knowing that I still had some chargeoffs that I was ready to pay off, I thought that with a 565 middle, I would be in the ballpark with FHA or VA. Found out on Thursday that I was denied. My next door neighbor got a loan with bond money from the same lender. My long range plan was to get a home before next school year starts, but when my neighbor moved into his new home, it made me jump the gun. I really thought that I could due the same thing, but I make too much money for bond assistance. Considering that, I applied at my second lender, First National Bank USA. Did an application and really felt strong about this one. The guy taking the application lived down my street and all. He really seemed to understand my situation and felt that it wouldn't be difficult to get approval based on paying off the "dings" on my report. Unlike Union Planters, this bank didn't want to use my wife's self-employment income. They felf that with me making over $50,000/year, that was enough for them. Also, they told me that underwriting would only take a day or two, unlike UP(two weeks). The guy that took my app either quit or was fired a couple of days later and may have took my file. It was found, but I got turned down here too. What make me even more ticked off was that the bank wouldn't take my calls, but they called my realtor and claimed that they would call me. Thursday night, I tried Lending Tree and got only one response, but if I would have consulted the forum before, I wouldn't have wasted my time. Thank goodness I didn't get more than one response. I was so down last night that I called Countrywide and did an app over the phone with them and was shocked back to reality. They could finance me, but only with a 80% loan. I would have to put 20% down! And this jackass actually thought I was even going to consider this. This made me rethink my plan. This guy was very willing to boost my 401K for this loan. This sounded very predatory to me. So, I woke up this morning and felt better. I found out where I stood with lenders, my scores are still going up, and I am not going to settly for another subprime loan that I am not going to be able to get out of. In my opinion, my credit is not perfect, but it is improving. So, I am going to wait out my latest disputes. Now, I am going to pay off these chargeoffs using the plans that everyone here has been using. And I am looking to settle accounts for 30% of what I owe. And I am going to do this the right way, registered mail with returned receipt with full deletion from all three bureaus or paid as agreed status. I got March-July left to do this and I want everyone to know that I will not rest until I get that prime mortgage rate. Everyone, thanks for reading my story and if you all have some advice on settling, please inform me. I intend to start this phase next week. 11/2001 3/2002 Experian- 574 Experian - ? Equifax - 488 Equifax - 565 Trans - 375 Trans - 551
That sucks, but it looks like your moving up quite rapidly with your scores. I am in a similar situation, looking for a house, but I am scared to apply because my scores aren't that high. They are EX(605), EQ(630), and TU(683). Does anyone know what good scores would be to apply for a FHA loan? Illini
We got a conventional loan with 5% down with scores of 630, 660 and 735 and a 6.875% rate. I understand FHA is a little easier to qualify for. We were nervous wrecks before we got final approval, since we both had a couple of paid chargeoffs and collections on our reports. My advice for settling is to act like you have very little money yet are looking to do the "right thing" by paying back what you owe. The CAs want to squeeze every last dime they can from you, and if they think you have more they will press for more. I had to pay off a chargeoff before we could get the financing and I just called them up and acted stupid about it. They ended up settling for 30%, even though they initially told me that since I had asked for validation they wouldn't budge from a 100% payment. Ha.
Sorry to hear about your hassles. Just keep disputing and you'll see your scores go up over time. Have you ever tried the credit union?
My credit union won't touch me with the chargeoffs that are two-three years old. I have one collection account for $120 that is recent, so that'll scare them off. They will be one of the first that I deal with, I am looking for full deletion in exchange for payment on this one. Any advice?
I tried this tactic several times. It never worked. The CA always said, it is not our policy to do that. What I did was pay them off and then dispute them several times. I had 3 on each report and I have successfully removed all of them from all 3.
FHA DOES NOT look at your last 24 months of credit. People need to stop this misinformation. I have been to a local bank, a broker, and a large mortgage company. Each said that I need at least ONE YEAR of good credit. It depends on the lender/underwriter requirements, not FHA. And don't expect to get approved on the spot with a sub 500 score regardless of what people say about FHA and scores. You might call Century21 Mortgage and see. They approved me over the phone in 15 minutes. They even have a website to check the status of your loan. The Rep said that he has seen people with 550 scores get approved. I am closing on Monday with 7.00% and 0.75% points. It seems the rates are on the rise though, so you had better hurry! Good Luck!
congrats MikeB! Great rate. What were your scores when you applied and was it an FHA loan? EDIT --- Actually, don't reply. I just searched on your user name and found that info.
