fyr196 Posted May 24, 2009 Report Share Posted May 24, 2009 I have worked hard to repair my credit. I was able to remove all but 3 baddies. I went from a 509 average to a 697 average. I have had the same job for 11 years, now making 73K a year. My wife has a 780 average score, and makes 30K a year. I have had no lates for the past 7 years and I carry 1K in credit debt. I have 2 cars with no lates and my debt to income ratio is well under what is average. I was asked by the underwriter for a letter of explination for the 2 Midland and 1 Applied bank balances not paid and in collections. I'm sending a well worded letter and I hope that is sufficient. My question is; am I going to get rejected or do I have a chance for this mortgage? We are doing FHA with 3.5% down.Thanks to anyone who can help with an answer. Link to comment Share on other sites More sharing options...
willingtocope Posted May 25, 2009 Report Share Posted May 25, 2009 These days, its really hard to know for sure, but you're scores (actual FICO? or FAKO?) seem adequate. I would bet the underwriter is going to want those collections paid, but I'd guess you stand a pretty good chance of getting a mortgage. Link to comment Share on other sites More sharing options...
scorch Posted May 25, 2009 Report Share Posted May 25, 2009 I have worked hard to repair my credit. I was able to remove all but 3 baddies. I went from a 509 average to a 697 average. I have had the same job for 11 years, now making 73K a year. My wife has a 780 average score, and makes 30K a year. I have had no lates for the past 7 years and I carry 1K in credit debt. I have 2 cars with no lates and my debt to income ratio is well under what is average. I was asked by the underwriter for a letter of explination for the 2 Midland and 1 Applied bank balances not paid and in collections. I'm sending a well worded letter and I hope that is sufficient. My question is; am I going to get rejected or do I have a chance for this mortgage? We are doing FHA with 3.5% down.Thanks to anyone who can help with an answer.I hope it is sufficient too, but you may want to look into having those collection items deleted. Link to comment Share on other sites More sharing options...
morrow Posted May 26, 2009 Report Share Posted May 26, 2009 Are the collections recent? You had mentioned that you had a clean payment history for the past 7 years but is that aside from the collections?Either way, the underwriter asking for a letter of explanation is almost standard nowadays. Given the rest of your current credit situation they may take everything into consideration and not ask that the accounts be paid prior to closing. This is not uncommon.However its better to be safe than sorry and if it were me, I would simply make sure that I had the extra funds to cover the collections account should the lender request they be paid. Link to comment Share on other sites More sharing options...
Ranana_diok Posted June 15, 2009 Report Share Posted June 15, 2009 I think you can get a mortgage with at least 20 down, perfect credit and stable job. There is no other way; the irresponsible lending and borrowing is over. Link to comment Share on other sites More sharing options...
2ndTimeAround Posted June 16, 2009 Report Share Posted June 16, 2009 I have worked hard to repair my credit. I was able to remove all but 3 baddies. I went from a 509 average to a 697 average. I have had the same job for 11 years, now making 73K a year. My wife has a 780 average score, and makes 30K a year. I have had no lates for the past 7 years and I carry 1K in credit debt. I have 2 cars with no lates and my debt to income ratio is well under what is average. I was asked by the underwriter for a letter of explanation for the 2 Midland and 1 Applied bank balances not paid and in collections. I'm sending a well worded letter and I hope that is sufficient. My question is; am I going to get rejected or do I have a chance for this mortgage? We are doing FHA with 3.5% down.Thanks to anyone who can help with an answer.Missing is assets - banks want to see you have at least 6 months (seasoned) reserves in the bank.Suggestion - on your installment debt (car payment), start sending in extra with your normal payment. After a few months this gets reported as you are being more responsible. The CB's rewards you by raising your credit score. Link to comment Share on other sites More sharing options...
jq26 Posted June 16, 2009 Report Share Posted June 16, 2009 You can use things like a % of 401k, Roth IRA, 403bs, etc. as reseves. I had to do this in 2007 with FHA and it was plenty. And I was told six weeks ago (when I thought I may buy a home) that nothing had changed regarding reserves. Link to comment Share on other sites More sharing options...
fyr196 Posted June 25, 2009 Author Report Share Posted June 25, 2009 We got the loan and we are set to close on tuesday. I just got the Mortgage Commitment today!!! Yay! Thanks to everyone for all your help. Link to comment Share on other sites More sharing options...
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