Posted on: 28th Jul, 2009 08:27 pm
Details are:
Self Employed - 5 yrs
Income - 67k in 07 and 98k in 08, verified on taxes. Have 1099s and Statements.
Have TU score of 675, EXP 640 and Equifax of 630.
Debt to income is great, I only have 1 Vehicle payment of $481 and pay my CC balances off each month. Usually between $0 and $200 between all of 5 credit lines. Major assets list is around the $300k area but it is all equipment and personal property, nothing financial like IRAs or the like.
Never late on anything in 3 years.
I have had a Car repo in 2000 that was turned into a judgement in 2006, this has been paid in full and updated on Credit reports. TU has deleted it completely. ($8660) Marked satisfied on EXP and EQ. I had state tax lein that was also turned into a judgement in 05, ($560) also has been paid but still is on record and is marked released. The Judgment is warranted, the Tax lien was courtesy of the state not sending records to my correct address. :roll:
Some very old chargeoffs from before 2004 that were less than $900. Any that I could find the collection agency for were paid or settled. I have disputed and removed several items this month, so my score has undoutedly improved further, I just do not know how much until next month after my report updates.
I have a land contract for some land (3.5 acres). I bought this land in 2001 and have lived on it till now. Original price was $29k and current is around $22k. The home I am living is was a "Rent to own" agreement and the person that has the name on the house itself has a drug problem and hasn't been paying the payments I give him the the mortgage holder of the manufactered house we are in now. I have no liability to keep this house and would rather get my own. I have no doubt that he will loose "My" house before long at this rate.
I have found a modular home that I want to buy for my family that is $156k and then finance the rest of the land in with the house. I am told this would be an FHA loan and the equity in my land would suffice as the down payment. However, I do have some money for down payment if needed up to around $15k.
Since this is my first time to do anything of this nature, I am apprehensive and want to make sure that I have all items in my favor before I attempt this loan. Any guidance is helpful.
Thanks
Self Employed - 5 yrs
Income - 67k in 07 and 98k in 08, verified on taxes. Have 1099s and Statements.
Have TU score of 675, EXP 640 and Equifax of 630.
Debt to income is great, I only have 1 Vehicle payment of $481 and pay my CC balances off each month. Usually between $0 and $200 between all of 5 credit lines. Major assets list is around the $300k area but it is all equipment and personal property, nothing financial like IRAs or the like.
Never late on anything in 3 years.
I have had a Car repo in 2000 that was turned into a judgement in 2006, this has been paid in full and updated on Credit reports. TU has deleted it completely. ($8660) Marked satisfied on EXP and EQ. I had state tax lein that was also turned into a judgement in 05, ($560) also has been paid but still is on record and is marked released. The Judgment is warranted, the Tax lien was courtesy of the state not sending records to my correct address. :roll:
Some very old chargeoffs from before 2004 that were less than $900. Any that I could find the collection agency for were paid or settled. I have disputed and removed several items this month, so my score has undoutedly improved further, I just do not know how much until next month after my report updates.
I have a land contract for some land (3.5 acres). I bought this land in 2001 and have lived on it till now. Original price was $29k and current is around $22k. The home I am living is was a "Rent to own" agreement and the person that has the name on the house itself has a drug problem and hasn't been paying the payments I give him the the mortgage holder of the manufactered house we are in now. I have no liability to keep this house and would rather get my own. I have no doubt that he will loose "My" house before long at this rate.
I have found a modular home that I want to buy for my family that is $156k and then finance the rest of the land in with the house. I am told this would be an FHA loan and the equity in my land would suffice as the down payment. However, I do have some money for down payment if needed up to around $15k.
Since this is my first time to do anything of this nature, I am apprehensive and want to make sure that I have all items in my favor before I attempt this loan. Any guidance is helpful.
Thanks
Hi,
The information you have provided looks good enough for you to qualify. Your credit score is around 640, whereas a minimum of 620 is required to qualify for an FHA loan. For self employed people, borrower has to have a minimum of 2 years of self-employment. You've got 5 long years of self-employment with good income which is verifiable. Debt-to-income ratio is one of the main factors to get a loan. You've mentioned that your DTI ratio is quite good as your amount of debt is limited. So, seen from this point of view, you've got a good chance of qualifying for a loan.
FHA is quite strict about judgments, state tax liens etc. You've mentioned that you've paid off most of the judgments and removed the negatives like charge offs from your report. This is good. But is the state tax lien still on your report? If it is, then you ought to try to remove it from your report before you apply for the loan.
Since you're a first time buyer, you may qualify for the $8,000 first time buyer tax credit. If this is the first principal residence that you're going to own in the last 3 years, you can qualify for the tax credit.
The information you have provided looks good enough for you to qualify. Your credit score is around 640, whereas a minimum of 620 is required to qualify for an FHA loan. For self employed people, borrower has to have a minimum of 2 years of self-employment. You've got 5 long years of self-employment with good income which is verifiable. Debt-to-income ratio is one of the main factors to get a loan. You've mentioned that your DTI ratio is quite good as your amount of debt is limited. So, seen from this point of view, you've got a good chance of qualifying for a loan.
FHA is quite strict about judgments, state tax liens etc. You've mentioned that you've paid off most of the judgments and removed the negatives like charge offs from your report. This is good. But is the state tax lien still on your report? If it is, then you ought to try to remove it from your report before you apply for the loan.
Since you're a first time buyer, you may qualify for the $8,000 first time buyer tax credit. If this is the first principal residence that you're going to own in the last 3 years, you can qualify for the tax credit.
Thanks for the update and the advice.
All judgements/liens were paid. I have no outstanding items to pay at this point, however, I have not been able to clear them from the report. (With the exception of TU).
How would I be able to remove the records of the Taxes and Judgement from the others? I am waiting to see an updated credit profile on the 10th. I will then decide whether to wait longer to apply, or proceed based on the new changes.
I have lived so long without credit, most everything I have bought was cash. I still run my business this way as well. I do expect my score to rise close to TU after this update though.
All judgements/liens were paid. I have no outstanding items to pay at this point, however, I have not been able to clear them from the report. (With the exception of TU).
How would I be able to remove the records of the Taxes and Judgement from the others? I am waiting to see an updated credit profile on the 10th. I will then decide whether to wait longer to apply, or proceed based on the new changes.
I have lived so long without credit, most everything I have bought was cash. I still run my business this way as well. I do expect my score to rise close to TU after this update though.
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I would love to assist you. Email me back, and let's discuss!
MSmith@PrecisionFundingUSA.com
M
I am on line now!
I tried to call you, but no oen answered
I heven't given my number out to anyone at this point, so I am not sure who you have called.