Posted on: 15th Feb, 2011 12:45 am
I'm selling my current home (at a profit) and plan to pay off one of two car loans i have of $11,000
My only other loans are:
Another car loan: balance of $15,000
Home will be paid once sold. (this isn't a short sale)
Both car loans and mortgage have never been late...not once.
I will have about $42,000 from sell of home. I plan to pay off the $11,000 car loan That will leave me 31,000
I want to purchase a home "listed" for $99,900 ( its a foreclosure...it might sell for less)
I will put minimum of $30,000 down
Ive been employed in airline industry for 21 yrs and it is secure.
My yearly income is about $105,000
The only debt i am carrying now is the two car notes which i will pay one off possibly.
I live in Houston texas.
Now that bad stuff:
my fico is Transunion: 547 Equifax: 614
I have five charge offs from about 4 1/2 yrs ago. I got over extended plus medical expenses from daughters illness.
I no longer use credit cards...i have no open CC accounts
all charge offs are about 4 to 5 yrs old.
Anyone think i might find a lender to work with me. Also, will paying off either of the two car loans raise my fico any at all?
Will the loan on my current home being paid raise my Fico score any?
I could put up to 40,000 down but I would still have the two car loans.
Have i got a chance or should I just plan to go rent for a couple of years??
My only other loans are:
Another car loan: balance of $15,000
Home will be paid once sold. (this isn't a short sale)
Both car loans and mortgage have never been late...not once.
I will have about $42,000 from sell of home. I plan to pay off the $11,000 car loan That will leave me 31,000
I want to purchase a home "listed" for $99,900 ( its a foreclosure...it might sell for less)
I will put minimum of $30,000 down
Ive been employed in airline industry for 21 yrs and it is secure.
My yearly income is about $105,000
The only debt i am carrying now is the two car notes which i will pay one off possibly.
I live in Houston texas.
Now that bad stuff:
my fico is Transunion: 547 Equifax: 614
I have five charge offs from about 4 1/2 yrs ago. I got over extended plus medical expenses from daughters illness.
I no longer use credit cards...i have no open CC accounts
all charge offs are about 4 to 5 yrs old.
Anyone think i might find a lender to work with me. Also, will paying off either of the two car loans raise my fico any at all?
Will the loan on my current home being paid raise my Fico score any?
I could put up to 40,000 down but I would still have the two car loans.
Have i got a chance or should I just plan to go rent for a couple of years??
Hi Guest,
Your credit scores are really a minus point for you. With these credit scores, you can apply for a FHA loan but there is no guarantee that you'll get one. You should immediately take steps in order to improve your credit scores. Once you pay off your current mortgage in full, it will help you in increasing your credit score. You can plan to rent for a few years and improve your score in the mean time and then apply for a loan.
Take care.
Your credit scores are really a minus point for you. With these credit scores, you can apply for a FHA loan but there is no guarantee that you'll get one. You should immediately take steps in order to improve your credit scores. Once you pay off your current mortgage in full, it will help you in increasing your credit score. You can plan to rent for a few years and improve your score in the mean time and then apply for a loan.
Take care.
FHA is probably your best bet to get financing, if you put a good portion of the money down towards the purchase price and the less you finance will certainly help. Paying off the car good actually go against you if you do not have a lot of open activity on your credit report. The longer a trade line is open on your credit the better it helps your score because it shows a positive history of payments. Once you pay off the loan your fico scores may actually go down. I would wait to pay off the loan and sit with a mortgage consultant or bank representative. Once you pay off your existing mortgage again may help your scores but it also could go down initially. To know more I would actually call the credit bureaus and ask how those two trade lines may affect your score overall.
Good luck
Good luck
Where did you get your credit scores from and do you have a credit score from Experian? While there is usually going to be a difference between the 3 scores, the 67 points between TransUnion and Equifax is quite substantial. You really need to know what the actual 3 credit scores mortgage lenders use to see where you currently stand (middle score is the one they usually use). There could be some errors on your credit report that could be lowering your scores. The fact that you don't have any credit cards is also not helping you either.
If you recently applied for a loan and that's how you got your scores get a copy from whoever pulled your credit. On it you will see the key factors that are lowering your score and from that you may be able to take some steps that could quickly increase your scores. There are lenders/mortgage brokers that can do this for you and they can get a good idea how much your scores can increase if you take certain steps. This is known as rapid rescoring.
Anyway, key is to know what your actual 3 scores are that lenders use and take it from there.
If you recently applied for a loan and that's how you got your scores get a copy from whoever pulled your credit. On it you will see the key factors that are lowering your score and from that you may be able to take some steps that could quickly increase your scores. There are lenders/mortgage brokers that can do this for you and they can get a good idea how much your scores can increase if you take certain steps. This is known as rapid rescoring.
Anyway, key is to know what your actual 3 scores are that lenders use and take it from there.
