Remove a Charge Off to get a Mortgage Quickly

[Malodave]

I have a builder ready to build me a house just the way I want it for about $180K. I am a first time home buyer. To qualify for a FHA mortgage I need my middle FICO score to be 620 Minimum. My scores are:

TU: 592

EX: 567

EQ:635


About 2.5 years ago I had a woman staying with me. She caused me a lot of financial headaches. I was late 30 to 60 days on all my accounts. Plus she ran up my phone bills to $2700 in three months. She was hiding the phone & cable bills from me or I would have shut off the phone. I was able to put the parental controls on the cable box so she could not order PPV movies and porn. In total she has cost me about $40K already and I am still paying due to higher interest rates.

I have paid off all the CC accounts or have them current with the last late payments 2 years ago. The only thing I have not taken care of is the phone bill. The SOL in NH is three years.

AT&T's portion was $1677. They charged-off the account in June of 2008. I talked to a mortgage company in May that said if I can get the charge-off removed my score would jump and I could qualify for the mortgage.

I am looking to try a PFD of about 50% of the total. But, I would like to get some advice from the forums.

I will also ask my boss about adding me to a CC account for the business to lower my debt to credit line percentage. This may be just enough for me to qualify alone but I still want to fix the charge-off and the late pays if possible.

Thanks in advance,

Malodave
Nashua, NH

[chane]

Always dispute it before trying a PFD. I would dispute it numerous times first. You can do the same thing with the other negatives. That should raise yours scores enough to get the loan.

You should do the steps outlined in this post first though:

Basic Step by Step Beginner's Guide to Credit Repair

[Jacobjohns]

Sorry to budge in but Chane is there a section on Business credit on your forum ?
Thx

[chane]

Originally Posted by Jacobjohns

Sorry to budge in but Chane is there a section on Business credit on your forum ?
Thx

No, not right now. There might be someday.

[diggingout1]

FYI ... when my lender pulled my scores they were much higher than what I had been pulling on myfico.com.

[Malodave]

I read on the FHA website last night that the minimum score for their loan program is at 580 now. Everyone was telling me it was at 620. So I might be good to go as it is, but I do want to improve my score still.


Malodave

[chane]

That's a good idea. Getting a sub-prime mortgage can cost you thousands and thousands of dollars over 30 years.

[Malodave]

I talked to the Mortgage guy from Met-Life Thursday. I got a message that he pulled my FICO scores and they have come up enough since May to just barely qualify.

EQ 632

TU 621

EX 603

I will be talking to him again later today to get the ball rolling.

I still want to try the GW letters for the late payments on the closed accounts to help out some more.

Malodave

[Malodave]

I think the general consensus here is that I should dispute the TLs before trying the GW letters.

Now, should I dispute all the accounts at once, or do a few at a time?

If a few, Should I start with the current accounts first (4), or the closed ones (6)?

The reason I ask is, all but one of the late payments happened between 4/08 and 7/08. Since they are all late in the same time frame. The CRAs may correlate that since I had late payments on the rest of the accounts that I was not disputing, they may say that they are accurate.

Malodave

[Malodave]

I hit another snag. Since I am under a 1099 agreement with the company I do work for, I have to look for a NO-DOC or LOW-DOC Mortgage lender now.

Malodave