homeowner hopeful one day

[score_recovery]

I filed bankruptcy in 12/03, and it was discharged 8/04. Since then I have still continued to try and clean up my report by having charge offs changed to included in bk. All of that has been accomplished. Since then I have been approved for 3 cc's. However, after a complicated surgery in 2006, I was left with a huge hospital bill. I had to pay my hospital bill in installments, meaning I could only pay min. pymts on my cards. Now, they are at nearly max. If I pay them down to near 30% of the limit, will this help increase my credit score?

Also, I had to take a grad class in order to keep my job--raking in another 2400 dollars. It was sent to collections. Before I could really do anything, it was on my report. However, I dipped into my 401 K to pay this collection.

Likewise, during my hospitalization, my students loans were adding up (120 days late). Fortunately, I was lucky enough to work a summer job teaching to pay it back up to date. Now I am back on track.

By then end of the year, I plan to have 2500 in my credit union account--direct deposit (maybe even more since I get a 7500 raise starting in August.

Also, I have had a car loan since June 04 with no late payments.

Is there any hope in me getting a home loan?

[lrprn]

Is there any hope in me getting a home loan?

At least you're more than two years out of your bankrupcy - that's in your favor. A lot will depend on your credit scores and how much successful rebuilding you've had since your bk was discharged in 2004. Since your cards have had high utilization amounts and you've had some late payments, that won't help. But you do have some successfully paid back debts, so that's good.

The more money you have to put down, the better. One of our mortgage experts here recommends 20% down and at least two years after bk to go house hunting. Hopefully one of our members who's been down this road can chime in with their personal experience.

[MTG_BANKER_OH]

[QUOTE=score_recovery;92037]I filed bankruptcy in 12/03, and it was discharged 8/04. Since then I have still continued to try and clean up my report by having charge offs changed to included in bk. All of that has been accomplished. Since then I have been approved for 3 cc's. However, after a complicated surgery in 2006, I was left with a huge hospital bill. I had to pay my hospital bill in installments, meaning I could only pay min. pymts on my cards. Now, they are at nearly max. If I pay them down to near 30% of the limit, will this help increase my credit score?

You may want to look at an FHA loan, I think this is your best bet at getting approved with a decent interest rate. FHa is not score driven and underwriters can look at your situation beyond what is just on paper and it seems you have a good explanation for your credit. There are a few other loans you may want to look at if your scores are over 620 you may want to do a my community loan but there are income restrictions on this program you will have to check in your area to see what they are and compare against what you make per year.

Paying down your credit cards will help your scores tremendously, I have seen increases by 30+ points within a few weeks.

[score_recovery]

It has been a while since I checked my credit scores, but I remember Transunion the last I checked at 592. Of course, that was good then...seeing I was in the low 5's. So, paying down all my cards this summer could take me above 620? That would be nice in knowing.

Thanks for your reply.