Posted on: 12th Apr, 2010 09:53 am
I hope someone can answer my questions.
I am going to be a first time home buyer, i would like to get in before the rebate expires, have been trying to raise my scores in the last 6 months, i have successuflly been able to raise them slowly but surely.
Experian 590, Transunion 615, Equifax 617, my FICO score said 615 last week.
I know i need a 620 to get an FHA loan. I have been at my job 4 years, make gross about 2800$ per month, plus an additional $600 child support per month (steadily for past 3 years i have recieved) i can claim as extra income.
I have 2 credit cards, both paid off, but do not have high limits as these were done to start building my credit back, one is $450 limit and the other $1500 limit, and student loans that are in deferrment because i am currently in school. No car loan as it has been paid off for about 1 year.
I do have somone who can sign as a co borrower, but can they sign if they if they have their own mortgage? THey will also be a non occupying person. Their loan is not FHA, and they have had it about 6 years.
Their score is not super but it is a 680, with low debt to ratio.
They have been at their place of employment about 3 years and they make gross about $5000 per month, I just need to know if its possible for them to co sign on loan and i be able to get the loan.
Also i have been working on getting some of the collections off my account with a credit repair agency, but one popped on their 2 days ago, at this time i dont' really even know what it is, i just got an alert that a new one was placed on there.
Will i not be able to get an FHA loan if i have recent collection accounts? If i am able to qualify will i have to pay them all off before i can get the loan? I heard sometimes if thay are under $1000 and less than 18 months old i will have to, i don't have an issue with that as there are only a couple of those on there with that. I also heard that if i have a recent one like the one that just hit, i will not be able to qualify. (Please let me know on this.)
I don't have late payments on my credit cards i have had for 1 year, but on my car loan i did, but that was about 4 months before it was paid off. It was paid off May 2009. I had late payments in Dec/Jan of that previous year.
Please help if you can,i would like to get into a home before the rebate expires and not sure if i should try or not as i worry that someone pulling my credit will put a hard inquiry on my report. Please let me know if there are any other questions i can answer fo you to help me with. This is basically the situation.
Thank you.
I am going to be a first time home buyer, i would like to get in before the rebate expires, have been trying to raise my scores in the last 6 months, i have successuflly been able to raise them slowly but surely.
Experian 590, Transunion 615, Equifax 617, my FICO score said 615 last week.
I know i need a 620 to get an FHA loan. I have been at my job 4 years, make gross about 2800$ per month, plus an additional $600 child support per month (steadily for past 3 years i have recieved) i can claim as extra income.
I have 2 credit cards, both paid off, but do not have high limits as these were done to start building my credit back, one is $450 limit and the other $1500 limit, and student loans that are in deferrment because i am currently in school. No car loan as it has been paid off for about 1 year.
I do have somone who can sign as a co borrower, but can they sign if they if they have their own mortgage? THey will also be a non occupying person. Their loan is not FHA, and they have had it about 6 years.
Their score is not super but it is a 680, with low debt to ratio.
They have been at their place of employment about 3 years and they make gross about $5000 per month, I just need to know if its possible for them to co sign on loan and i be able to get the loan.
Also i have been working on getting some of the collections off my account with a credit repair agency, but one popped on their 2 days ago, at this time i dont' really even know what it is, i just got an alert that a new one was placed on there.
Will i not be able to get an FHA loan if i have recent collection accounts? If i am able to qualify will i have to pay them all off before i can get the loan? I heard sometimes if thay are under $1000 and less than 18 months old i will have to, i don't have an issue with that as there are only a couple of those on there with that. I also heard that if i have a recent one like the one that just hit, i will not be able to qualify. (Please let me know on this.)
I don't have late payments on my credit cards i have had for 1 year, but on my car loan i did, but that was about 4 months before it was paid off. It was paid off May 2009. I had late payments in Dec/Jan of that previous year.
Please help if you can,i would like to get into a home before the rebate expires and not sure if i should try or not as i worry that someone pulling my credit will put a hard inquiry on my report. Please let me know if there are any other questions i can answer fo you to help me with. This is basically the situation.
Thank you.
your coborrower won't allow you to have a lender overlook your current credit score, and that new collection you mentioned isn't going to do anything but reduce your score. recent collections, as long as they are paid, won't necessarily ruin your chances, but the score remains critical.
if you look for a mortgage at any time soon, there will have to be a hard credit inquiry, no matter what. if you're afraid of that hard inquiry, then the homebuyer credit isn't all that important to you.
you need to dig into that new collection immediately and rectify it, because if your score dips again, it's going to take all of the next 18 days to bring it back up again (and then some), and you have to be in contract to purchase not later than april 30 in order to qualify for the tax credit.
you need Usain Bolt's speed if you're going to cash in on that credit.
if you look for a mortgage at any time soon, there will have to be a hard credit inquiry, no matter what. if you're afraid of that hard inquiry, then the homebuyer credit isn't all that important to you.
you need to dig into that new collection immediately and rectify it, because if your score dips again, it's going to take all of the next 18 days to bring it back up again (and then some), and you have to be in contract to purchase not later than april 30 in order to qualify for the tax credit.
you need Usain Bolt's speed if you're going to cash in on that credit.
so i would still have to have min credit score of 620 to qualify no matter what. Even if i have a co borrower it doesn't change the fact that i would still need a minimum of 620 score. How long after does the new collection added hit score, i checked today and that was my score today, the collection added on friday. Does that mean it already affected my score?
SO is there nothing i can do really to get the loan if my score is 620? Basically no matter what that is what it comes down to is having that 620 score. Then having a co borrower helps in what area? If i don't have the income for the home?
THanks
Karen
SO is there nothing i can do really to get the loan if my score is 620? Basically no matter what that is what it comes down to is having that 620 score. Then having a co borrower helps in what area? If i don't have the income for the home?
THanks
Karen
yes, karen, a coborrower is generally only allowable, on fha loans, as an additional income to enhance the debt ratios that are reviewed. cosigners do not allow lenders to overlook a credit score that is below the guideline level.
it would seem, from what you've said, that the collection is already taken into account on your credit records. however, one thing that is probably not clear to you yet is that when you review your own scores, you are not seeing what a mortgage lender will see. lenders are looking at a mortgage-specific risk-rated score...in other words, you see a kind of generic score that tells you where you stand, but your mortgage lender is being given a different analysis that risks you strictly on the basis of attempting to obtain a mortgage loan. in these cases, your score viewed by a lender is generally lower than what you'll see on your own.
to get your true score as seen by the lenders, you'd have to counsel with a lender and request that they run your report to see what your scores turns up with.
it would seem, from what you've said, that the collection is already taken into account on your credit records. however, one thing that is probably not clear to you yet is that when you review your own scores, you are not seeing what a mortgage lender will see. lenders are looking at a mortgage-specific risk-rated score...in other words, you see a kind of generic score that tells you where you stand, but your mortgage lender is being given a different analysis that risks you strictly on the basis of attempting to obtain a mortgage loan. in these cases, your score viewed by a lender is generally lower than what you'll see on your own.
to get your true score as seen by the lenders, you'd have to counsel with a lender and request that they run your report to see what your scores turns up with.
Karen:
You can raise your score by 1. Disputing credit (which you are doing), 2. Have someone allow you to piggyback on their accounts, this is where they add you as an authorized user to their credit accounts, 3.Open a merchandise card, this will show as an open/revolving unsecured credit/tradeline on your credit report which will increase your scores significantly. These types of accounts are sold as merchandise/catalogue credit cards but keep in mind they are great tools for increasing your score.. For more information google merchandise credit card. Ox-publishing offers one for $500 I believe. Best of Luck.
You can raise your score by 1. Disputing credit (which you are doing), 2. Have someone allow you to piggyback on their accounts, this is where they add you as an authorized user to their credit accounts, 3.Open a merchandise card, this will show as an open/revolving unsecured credit/tradeline on your credit report which will increase your scores significantly. These types of accounts are sold as merchandise/catalogue credit cards but keep in mind they are great tools for increasing your score.. For more information google merchandise credit card. Ox-publishing offers one for $500 I believe. Best of Luck.
If I'm added on someone's credit card as a co borrower, will it report to the credit bureau? If it does how soon will it report? I need one more line of credit to get approved for the house I want and I don't have much time left where
i'm at
i'm at
As you're a co-borrower on someone else's credit card, it will be reported to the credit bureaus. You can get hold of your credit report in order to check out how it's reported.