moblind Posted October 21, 2003 Report Share Posted October 21, 2003 Hi - I'm looking to buy a home next summer in Pennsylvania in the $100-$125K range. I will have approximately 10k to put down and make $42K with a 5-year history with my union job. My middle credit score is 594 (but I hope to have it around 640 by the time I apply for the mortgage), 3 old closed-by-consumer tradelines in good standing, 1 old paid-as-agreed auto loan in good standing, 1 paid judgment and 1 judgment which will be paid off by 2/2004. I have not had any credit cards in the past 6 years or so, and since I moved into my girlfriend's place, my name is not on the lease so I can't show a good rental history (although my name is on the telephone bill, if that might help). I have 2 questions:1. Will I be able to get a loan based on the above?2. I know it's been said not to make any major purchases before applying for a mortgage, but would it help me & my score if I purchased a car in the next month and paid it in full by 3/2004? (I'm in a financial position to do this).Thanks for your help! Link to comment Share on other sites More sharing options...
amortgageman Posted October 21, 2003 Report Share Posted October 21, 2003 You will be in a very good position for getting a loan when you are ready next spring or summer. With all your collections/judgments paid off, you would be an excellent candidate for FHA financing. They can accept alternative tradelines such as cell phone bills, ISP service, basically anything with a regular payment plan. I would reccommend contributing to a savings plan which has a definite amount set aside weekly or monthly to show that you will be able to handle the payments on the new purchase. Another possibility would be to have your girlfriend let you write the checks out of your checkbook, thus you will have receipts for rent. Applying for credit now will only be a positive to your credit scores by next spring. You will not want to apply for more credit inside of say, two months before applying for a mortgage. Link to comment Share on other sites More sharing options...
moblind Posted October 21, 2003 Author Report Share Posted October 21, 2003 Another possibility would be to have your girlfriend let you write the checks out of your checkbook, thus you will have receipts for rent. Because of NY laws, management will not accept rent payments (checks) from anyone other than the leaseholder. If they accept my checks, in court it is construed that the landlord accepted me as a tenant, which gives me scores of rights, blah, blah, blah. What if I wrote "rent" checks to her? Link to comment Share on other sites More sharing options...
cntrymom925 Posted November 11, 2004 Report Share Posted November 11, 2004 HI, i currently have in writing a lease agreement dated march 2004 saying i pay the sum of 500.00 per month in cash to owner of the house for rent. I have all rent receipts but the rental agreement states rent to be paid in cash. I have all rent receipts signed , dated etc. paid on time as per lease agreement. i am hoping to obtain a mortgage fha within the next year and am wondering if all original documentation rent receipts, rental agreement can be used to verify rental history and on time payments. will this be sufficient as documentation for underwriting guidelines?all info appreciated! thanks Link to comment Share on other sites More sharing options...
amortgageman Posted November 11, 2004 Report Share Posted November 11, 2004 There should not be any problems with FHA as long as you keep the documentation and the rental agreement. It would help that this money be withdrawn from your checking account on a separate check in the amount of the rent, and then pay for rent.FHA will look at the rental agreement, and understand. Link to comment Share on other sites More sharing options...
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