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Want a home. Is it possible for me?


ssgbarnes19
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I am a retired military member. I have been retired for about 18 months. Have been on this site for about 1 month and starting the credit repair process. I am trying to get a home. I make at my new job of 1 year about $70,000 a year and I receive my military pension of about $1400 dollars a month. I have credit scores of EQ:547, EX:563 and TU: 527. Still waiting on first round of DV's to come through. I have old collections which should fall of next year and 2 that I will probably have to pay about $3,000 for the both of them. I have a paid car and share a home with my brother and pay just the utilities. I have no other debt but a credit card that I have never been late on. I have VA certificate already and am trying to get in on a new housing development in my city. I am trying to move by late january, february. The homes aren't built yet, but I wish to get in on getting one built as soon as possible. Any advice would be helpful. I figure that my cashflow is great, but leery about my credit status.

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The new Riverfront development? Did that finally go through?

I'd say you're on the right track. The largest help to your score would be go get rid of those collections.

You should also consider getting a second credit card. A secured card (such as one from National City) would give your credit an additional bump since FICO likes to see 2-3 revolving accounts along with the mix of installment-type credit.

While the mortgage company usually only wants to see the outstanding collections paid, it does nothing for your score - if it comes down to it, get with the OC and request a settlement with a recall and deletion of the collection info.

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Man, DocDon you are psychic !! Yes, it's for the new development Jefferson Village. I have to remember you are a homeboy. Okay, now down to business. I'm sure that one of the collections is mine, but unsure of the other. I didn't want to wake a sleeping dog. But in order to get my home, I would go ahead and pay them off. Do you advise just calling the OC's straight up and talking to resolve this? Or do it in written correspondence? I'm all ears.

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Exactly. Don't call them - take your written issue right to their executive offices. A search of the BBB website might give you a contact name and address. If not, do a "Google" search.

Don't mention your new home - they'll figure you can't get funded without paying the collection off and will probably stick you with the full amount. Plead insanity, claim it was an oversight, etc....

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ssgbarnes,

VA is not credit score driven at all, if the score is lower than 600, they will look at the credit manually. They look at your overall credit, collections, judgments, BK (if applicable??), foreclosure, and Federal Government delinquincies.

With your collections that old, they may or may not ask you to pay them (most of the time the medical collections are at the scrutiny of the underwriter). This one will be your judgment call, of course if they are paid, then you will not have to worry about it.

VA will accept alternative credit, and you will need to establish proof of alternative tradelines. They can include payment history as long as it is paid on a consistent basis, and will review the previous twelve months.

A few examples would be utilities (in your name, or possibly in your case, verification by cancelled checks in another parties name?), cellular phone bills are an attractive alternaative, monthly clubs or organization membership dues, rent is always a good one, even a consistent savings plan, automobile insurance. This should give you a few ideas.

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Thanks guys for the help. I am about to go and see how much it will cost me to get the home building process started in the new deveolpment. Although for the sake of needing to square my credit away, I will try to pay off these debts. I'm shooting for the max on my VA. I figure since I have hardly any debt, That should go in my favor. Or should it?

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Something to remember is that if you are going to pay off collection accounts you should always try to negotiate a pay for delete. Otherwise, getting the tl updated to paid collection will likely drop your score some since it will look more recent.

Good luck!

paw67

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