counselor4kids Posted August 1, 2003 Report Share Posted August 1, 2003 I have been doing credit repair for the past month-got my husband's middle score from 568 to 644. Mine is stuck around 570. I have several 30 day lates at various intervals-when I was in grad school and not working, when I finished school and was waiting for my job in the school system to begin, when my husband returned to school full time and was working part time. The worst part is a payment on my car loan I evidently missed over a year ago. As a result I have 6 late pays every few months that stem from that one missed payment. The positive is that we have both finished school and our income has increased by at least $20000. Will a manual underwriter consider that the late pays were the result of living on basically one very meager income and that a couple thousand extra a month will change things drastically. Rental history is perfect. Are there people in worse situations who have been approved or did they have to pay an enormous down payment. What can I do to be sure they focus on our current situation? Link to comment Share on other sites More sharing options...
sisflomi Posted August 1, 2003 Report Share Posted August 1, 2003 I talked with 3 lenders about stuff like this counselor, they said two years of good history. If the lates have a good reason, they will prob over look them. I think with hubbys score and no current derogs and 3% down you should be okay for the loan, fha is prob going to be your best bet. Do you know aobut the downpayment programs? Link to comment Share on other sites More sharing options...
counselor4kids Posted August 1, 2003 Author Report Share Posted August 1, 2003 Yeah, we've been looking at the downpayment assistance programs. What exactly do you mean by no current derogs? The last late pays were in May of 2002 when my husband was in school, except for the car loan which I just found out was lagging a couple months ago. I made 2 payments in June to catch myself back up but it looks so bad. One missed payment just snowballs into others. Link to comment Share on other sites More sharing options...
sisflomi Posted August 1, 2003 Report Share Posted August 1, 2003 Have you asked the lender to delete the lates? Sometimes they will if you ask and keep asking. When are you wanting to apply for the loan? I mean no neg info for two years at all. Link to comment Share on other sites More sharing options...
counselor4kids Posted August 1, 2003 Author Report Share Posted August 1, 2003 Lender is being very rude-no luck so far. We're also considering having my husband go for the loan on his own, but then we lose my income. For him to stay in the 41% debt to income ratio he would have to get a really low rate to keep the payment down. Any suggestions? We can't go FHA with just him because I live in a community property state (my debt would be factored in with his). Link to comment Share on other sites More sharing options...
sisflomi Posted August 1, 2003 Report Share Posted August 1, 2003 I think that if you explain this to the lender, you will be okay. Most will still let the loan go through with a really good reason for the lates. Just explain, we didn't realize we were behind, we paid up the one payment we were late on, and didnt know they added late fees and such that kept your payments late. When you did find out, you paid it up in full and are keeping it that way. As long as you don't owe anything, like co's or collections, and with his scores, you should be approved. Link to comment Share on other sites More sharing options...
counselor4kids Posted August 1, 2003 Author Report Share Posted August 1, 2003 Should we cross our fingers and try to go with both our info or try with just him? Link to comment Share on other sites More sharing options...
sisflomi Posted August 1, 2003 Report Share Posted August 1, 2003 Well, you know for sure your debt is gonna be included no matter what. You are better off to do you both and see where that gets you. You can always pull out of the deal and do him if it wont work that way. Did you find a house yet? Can you wait another few months to do this? If you could wait until may of next year, you will be better off I think. The most you can do now is go for it and see what they say. If they say no, then you will know what to do over the next few months to get a yes. If they say yes, then you are home free!!!!!!! Link to comment Share on other sites More sharing options...
firstsource Posted August 1, 2003 Report Share Posted August 1, 2003 You can get a sub-prime loan with your credit situation. They all allow 50% Debt to income ratio's. In two years you will be able to re-finance with a prime rate lender. Charles Link to comment Share on other sites More sharing options...
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