Posted on: 27th Jan, 2011 06:52 am
Hello,
I am planning to apply for a mortgage with Wells Fargo. I have okay credit (650), have a 20 yr credit history, no late payments on previous mortgages with other lenders or personal credit cards, a stable job making 60K a yr. However, I co-signed on a student loan and car note for my son and there were late payments made by my son (some recent), which in term have affected my credit.
I would like a mortgage of about $150K. I haven't applied for a mortgage in years so am not sure how strict/high the qualifications are now.
Thanks!
I am planning to apply for a mortgage with Wells Fargo. I have okay credit (650), have a 20 yr credit history, no late payments on previous mortgages with other lenders or personal credit cards, a stable job making 60K a yr. However, I co-signed on a student loan and car note for my son and there were late payments made by my son (some recent), which in term have affected my credit.
I would like a mortgage of about $150K. I haven't applied for a mortgage in years so am not sure how strict/high the qualifications are now.
Thanks!
If your credit score is 650 after the late payments on the loans for which you co-signed, then your credit score is what it is.
The late payments have been accounted for in the credit score and you can get a mortgage with a 650 credit score. With 20% or more down payment you can get a conventional loan. With less than 20% down payment, you may have to get an FHA mortgage because you can not get PMI for conventional loans with a score that low.
Nothing wrong with an FHA mortgage.
If you get a conventional loan, the rate may be higher than if you had a credit score 740 or hihger, but, you can still get the loan.
You will have to write a letter of explanation as to why there were late payments. You already know the answer to that and can write the letter.
You can apply with Wells Fargo or anyone else.
The late payments have been accounted for in the credit score and you can get a mortgage with a 650 credit score. With 20% or more down payment you can get a conventional loan. With less than 20% down payment, you may have to get an FHA mortgage because you can not get PMI for conventional loans with a score that low.
Nothing wrong with an FHA mortgage.
If you get a conventional loan, the rate may be higher than if you had a credit score 740 or hihger, but, you can still get the loan.
You will have to write a letter of explanation as to why there were late payments. You already know the answer to that and can write the letter.
You can apply with Wells Fargo or anyone else.
Jacllyynn
No way to know what the computer(automated underwriting) will spit out. You should just apply.
But I have seen similar situations go thru just fine
No way to know what the computer(automated underwriting) will spit out. You should just apply.
But I have seen similar situations go thru just fine
I'm in agreement with John. A conventional mortgage with a 650 score is going to be quite pricey. FHA loans, even with the mortgage insurance element, are probably a better fit for someone with that score in this marketplace. It wasn't that long ago that 650 was a pretty reasonable score, but things have changed markedly in the ensuing years.
Hopefully, your son is on the right path now, and making payments on time. That will, of course, enhance your score into the future; but for now, you suffer for those late payments.
Hopefully, your son is on the right path now, and making payments on time. That will, of course, enhance your score into the future; but for now, you suffer for those late payments.
My chapter 7 bk discharged 2 years ago. Since I have rebuilt my credit to a 720. I have been employed with the same company for 5 years. I want to put 20% down on a $150,000 house. What are my chances of obtaining a loan with a reasonable rate.
hi andre!
welcome to forums!
as 2 years have passed since your chapter 7 bankruptcy was discharged, you will be able to qualify for a fha loan. in order to get a conventional loan, you will have to wait for 4 years after the discharge.
feel free to ask if you've further queries.
sussane
welcome to forums!
as 2 years have passed since your chapter 7 bankruptcy was discharged, you will be able to qualify for a fha loan. in order to get a conventional loan, you will have to wait for 4 years after the discharge.
feel free to ask if you've further queries.
sussane