Getting Loans with Negatives on CR

JPowell · Joined: 20 Jan 2010 Posts: 103 Location: PA

I have some negatives on my credit report that will be around for at least two or three more years. Things like charge offs and a few collection accounts (no judgments though).

I'm a bit worried because I really am not in a place where I can consider paying them off, and even if I do they probably would not be removed from my CR but I want to be able to get a house long before they disappear.

On other sites I have heard that you have to remove all outstanding debt from negative accounts from your CR before you can get approved for a home loan, is that true?

Thanks!

Celestew84 · Joined: 20 Jan 2010 Posts: 15

Now this is just from personal experience me and my husband tried to purchase a home and we were unable to do so because of our credit. Now I am not sure what state you live in but, we went through a program (didn't continue cause we didn't find anything) Where they help low income families or people with bad credit to get a home loan. Now I am unsure with the way the economy is if they still have this program it was a in 2006 we did this but it doesn't hurt to visit the HUD site to find out what lenders are in your area that will work with you. Good Luck to you.

Sahmama24 · Joined: 19 Jan 2010 Posts: 26 Location: Delaware

JPowell wrote: I have some negatives on my credit report that will be around for at least two or three more years. Things like charge offs and a few collection accounts (no judgments though).

I'm a bit worried because I really am not in a place where I can consider paying them off, and even if I do they probably would not be removed from my CR but I want to be able to get a house long before they disappear.

On other sites I have heard that you have to remove all outstanding debt from negative accounts from your CR before you can get approved for a home loan, is that true?

Thanks!

We used a broker when we got financing for our home. We had a few collections as you stated. We paid down one CC balance and we got financing. You might consider using a broker or someone to jazz up your score a bit and then try.

Celestew84 · Joined: 20 Jan 2010 Posts: 15

[/quote]

We used a broker when we got financing for our home. We had a few collections as you stated. We paid down one CC balance and we got financing. You might consider using a broker or someone to jazz up your score a bit and then try.[/quote]

That may be something me and my husband need to look into. How much do brokers usually charge?

JPowell · Joined: 20 Jan 2010 Posts: 103 Location: PA

As is my CR is as jazzed up as it can be without actually paying off the charge offs/collections and/or getting them deleted.

I did a lot of credit research after separating from the man who had ravaged my credit so that I could start rebounding and for the last two years I haven't had anything negative crop up. I keep my utilization low, keep a few credit lines at a $0 balance etc.

Just waiting for the old baddies to go away *sigh*.

I'll definitely look into the HUD site and consider a broker if we have problems though.

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

You should be using a mortgage broker regardless as to what your score is.

JPowell · Joined: 20 Jan 2010 Posts: 103 Location: PA

What exactly does a broker do? I always thought you just went to a real estate agent, shopped around for a house then shopped around for a loan.
Where exactly does a broker fit in and how do they help?

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

I think it may be warranted to reverse that process to some extent. You at least need to know what you will qualify for. For example in my case I have some savings where I could comfortably afford payments on good sized house, but the way I have my business structured, we are always reinvesting in the business with excess profits resulting in a lower income, so we don't qualify for nearly as much, unless we make a sizable down payment.

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

David,

You could qualify for a stated income loan. Unfortunately, I am unaware of any lenders in your particular state who are doing that right now.

jhonny07 · Joined: 31 Jan 2010 Posts: 10

Credit score has a big role when you re applying for a loan, well loan companies had been pretty strict to loan applicants

FrankPolenose · Joined: 21 Jan 2010 Posts: 2

jhonny07 wrote: Credit score has a big role when you re applying for a loan, well loan companies had been pretty strict to loan applicants

You are right in a way - in UK some companies will view your Credit Search instead and make a decision based on that. Therefore in that instance a Credit Score is irrelevant.

JPowell · Joined: 20 Jan 2010 Posts: 103 Location: PA

FrankPolenose wrote: You are right in a way - in UK some companies will view your Credit Search instead and make a decision based on that. Therefore in that instance a Credit Score is irrelevant.

I've never heard the term "credit search" before, it might be a UK only type of thing or I could just be out of the loop. What is that Frank? (If you don't mind my asking.)