Old charge-offs hurting our chances of getting mortgage. 2 more years on credit report-What should we do?
My husband and I have money aside and are ready to TRY and purchase a home. We have been denied by 3 different places for both FHA and USDA mortgage loans. We make plenty of money and the debt to income ratio is fine. The issue is old charge offs on my husbands credit from when he was young and irresponsible. We are not sure if paying these things, and essentially “waking up” all this old stuff is even worth it? We have come to terms with the fact that currently, no one is going to approve us. Even with the middle FICO at 610- there are still too many charge offs that are unsatisfied to be approved for even a more flexible loan program. Should we just wait 2 more years or pay some of this off? There is roughly 16k in charge offs, ranging from a repo to several credit cards and a co sign for a personal loan. We also currently have lived in the same place for almost 3 years, and have never been late on rent. We have excellent employment history and in the last 4 years, any open accounts have been paid on time without being late once. Do we have a shot at buying a home right now?