Posted on: 08th Jan, 2013 10:23 pm
We will be relocating in the near future and looking to buy a home, at least eventually. We have 3 dogs, and are looking in a VERY small area- finding a rental (our original plan) has proven impossible. Our annual income is $105,000 without the bonuses. We have a car payment of $375/month. Only 9 months left- can pay it off sooner if needed. No other debt Husband scores: 596 - 640. All collections are paid. Everything 4-6 years old, no recent lates/problems, etc. My score is 523 - 576 A total of $15,000 in unpaid collections, all from 4-6 years ago. Our mortgage broker says he can make a case for my husband and have us qualified under him only. This is great, except I have the majority of our income. He says he cannot make a case for me, thus I cannot qualify for probably 2-3 years. So, are we really out of luck using my income if I pay off my debts in the next couple months?
Hi Barry,
Your scores are quite low. In such a situation, it will be quite difficult for you to qualify for any kind of loan. Even in order to qualify for a FHA loan, you will require a credit score of around 620. So, I will suggest you to wait for sometime, improve your scores and then look out for a loan.
Your scores are quite low. In such a situation, it will be quite difficult for you to qualify for any kind of loan. Even in order to qualify for a FHA loan, you will require a credit score of around 620. So, I will suggest you to wait for sometime, improve your scores and then look out for a loan.
You can surely pay off your debts within a next couple of months. But, it is unlikely that your score will improve significantly within that time period. It would be better for you to wait for some more time and put in efforts to improve your score.
Work on the collections and do a Pay For Delete on these accounts. Once they are removed, this would help you. Try to obtain authorized user on a family member account. Open a secured credit card and use it. Keep balance under 40% of the limit. FHA does not have a credit score requirement, but each lender offering FHA products, will have different guidelines. I would work on the credit first.
