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Guest

Here's the situation;

My middle score is just over 600, I have charge offs and collections on my report that are over 6 yrs old... They should fall off about the middle of next year, However I want to buy a home right now, I did not file BK and have no judgments.

I was told by one mortgage broker, that lenders want all the derogatory marks removed or paid off before they would approve any loan.. This was for both conventional and FHA.

I currently have Lexington Law working to repair my credit, I'm confident my score will take a boost, but I doubt I'll be able to get all derogatory marks removed anytime soon.... My question is; Are their loans out available I can get into with these marks on my credit?... If I'm able to bump my middle score to 680-710, can I still get a decent interest rate?

The home I'm looking to buy is $250K and I can put 10% down + pay closing costs.

Please let me know... Thanks!

Nick

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi Nick.

Welcome to the forum.

From which state are you from? Why don't you want to pay the lien off? If you can pay off the lien that will have a positive affect on your credit report and it will also help toy to get approve for a mortgage loan with better rates and terms. BTW how much do you earn?

Best of luck.
Larry

Jeanette · Posted: Fri Jul 18, 2008 4:31 am Post subject:

Nick,

Putting yourself in additional debt is not going to make your situation better to purchase your home. You should be eliminating your debt. Taking any kind of loan out to pay for derogatory items is going to cause your DTI to rise and that might make it too high to get a loan. You have your down payment. Find some other way to pay off those collection items so you can get your house right away. 600 and up will offer you a decent rate. Good luck on the search for your new home.

Jeanette Smith
Mortgage Planner
Union Mortgage Group

michael_ueltschey · Joined: 11 Jul 2008 Posts: 15 6.47 Dollars($)

Nick,

If your Income and Assets are sufficient you should be able to qualify for an FHA loan without paying off the collections. Conventional you would most likely be unable to get approved. I am a loan officer and can lend in all 50 states. I am available to help if you'd like, no strings attached.

I learned a lot about fixing credit due to some collections I had back in college. I went from 585 to 760 in about 7 months. You can get it fixed you just need good advice.

But to answer your question you can get an FHA loan without paying off the other collections. If they are judgements/liens that could potentially affect title they would be required to be paid. Respond to this post if you want my advice and the best rate available to you. Kindest Regards, Ulch

Posted: Sat Jul 19, 2008 1:28 am Post subject:

Larry & Jeanette.... I'm located in California, I have over 35K in bad debt which most of it is charged off... My plan was to get as much of the bad debt removed and pay off the ones I CANT get removed. All this is going to take time.

With so many bank owned properties at very low prices, I want to buy now... I'm afraid if I wait until my credit is cleaned up, Prices may rise again, The indicators say that wont happen, but you never know.

Message sent to Michael.

Guest

Forgot to enter my username in the post above... "Guest" is me, Nykolos

Thanks for all your help guys!

brian1 · Posted: Sun Jul 20, 2008 8:41 pm Post subject:

Nykolos
Many lenders add tyo the fha guidelines and will request items to be removed from your credit. You need to avoid those. Not knowing your whole scenario makes it difficult to say if you will or wont be able to qualify but FHA does allow some leniency to people with past problems that have clean credit now. If you are clean the last 12 months and your debt to income qualifies you may be able to purchase with FHA. FHA recently upped the limits but as of now these higher limits will be gone Jan 1 209. For many of the more expensive parts of CA FHA NOW GOES TO $729K.
What part of the state are you looking in and how much are the homes you are considering buying?

Brian

gmakerley · Posted: Mon Jul 21, 2008 8:43 am Post subject:

Ulch...what does "no strings attached" mean? does that mean you are willing to help Nick solve his problems by referring him to a lender who won't pay you anything? you're not looking to be rewarded in any way, shape or form in the form of commission, etc? if you are, indeed, looking to get paid while "helping out" then that is a solicitation of business, which is not allowed on these forums. please be sure to check the guidelines here.

i suspect that most lenders are not going to be willing to take a stab at this when you have $35K in collections and charge offs. it's worth checking around, but i have to say i lack optimism.

Guest

Hi Brian,

I'm looking to buy in Southern California in the Inland Empire, The homes I'm looking to buy are selling from $210K-$250K... The broker I had found a lender that would do the loan, but it was at a very high rate locked in for 3 years and required a 20% down.

Our income is not a issue, Only our credit which has been clean for over 4 years..... If you would like to email me, use the address below....So the search engine doesn't index my email address, I'll spell it out instead:

[Email address deleted as per the user's request]

Thank you.

Nick

michael_ueltschey · Joined: 11 Jul 2008 Posts: 15 6.47 Dollars($)

George,

Got it buddy. Thanks for the long post and providing Nick with some good info. I am going to send him a Free Credit Repair Kit to his email right now.

I have found most of the advice given at this site to be average at best. I do not NEED anyones loan here. I have a pretty good book of business. I do think that every potential client needs a loan officer that can structure loans properly. Why don't you spend more time helping than policing?

brian1 · Posted: Mon Jul 21, 2008 11:05 pm Post subject:

For someone with 7 posts you should read the rules and back off. George is a moderator and is assigned the task of policing.

gmakerley · Posted: Tue Jul 22, 2008 10:38 am Post subject:

thanks, brian...im also sure he didnt bother to read any of my previous 800-something posts in which i have made an extraordinary effort to be of assistance to countless people.

it's always easier to complain about following the rules than it is to read them - i admit i didnt read any of the rules when i first got on here, but i observed and learned before i shot off my mouth too.

Guest

In all fairness, Michael U. has not solicited himself as a loan officer in anyway... He offered to send me a free credit repair kit and that's all.

I'm here looking for answers concerning my credit and FHA, and whether or not I can qualify... If I connect with a loan officer who is more knowledgeable about FHA than the broker I just used, and can get me approved with my current credit situation, I'm very much open to that.

Again, I appreciate everyone's help.

michael_ueltschey · Joined: 11 Jul 2008 Posts: 15 6.47 Dollars($)

George,

I am sure you have been helpful to many people here. I have seen several posters offer bad advice on this site. I thought that I could help some of these people. Is it against the forum rules to offer good advice. I have not quoted rates or closing costs. Merely told people to get in touch with me if they want help. I sincerely feel I can help people, whether I do the loan or not.

You know it's hard to help someone structure a loan unless you know all the details. Which is hard to get in a forum.

cwatters · Joined: 23 Jul 2008 Posts: 2 1.63 Dollars($)

It should not be a problem getting a FHA Mortgage. There is a link on my website that will explain it better.

[Link and promotional content deleted as per the forum rules]

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Can I qualify with old chargeoffs/collections on my credit?