Denied loans due to late payments, do I need to remove them?
I live in Orlando and I am applying for a refinance of my home to turn it into a rental property. I am also looking for funds for short term rentals. I have been working with my current employer for the past 8 years. My DTI is 42% and my credit scores average 708 across all 3 bureaus. The problem is I have 2 late payments in 2019 and one in 2020 on my credit report. Lenders have rejected my loan applications due to these late payments. Do I need to remove these late payments before applying again? by bwcarty678 from Orlando, Florida. Feb 25th 2022
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,843 contributions
Something doesn't pass the smell test for it to be just the mortgage late payments as a reason for denial. Traditional cookie cutter loans care primarily about payments in the last 12 months. Late payments in 2019 and 2020 will show on the credit report, and will hurt your credit score, but late payments that old shouldn't stop anything. On the other hand, it you are using some lender who is doing their own internal loan of some type, not a standard Fannie Mae / Freddie Mac type loan, they may have a rule like that... Call another lender. I lend in MN, WI IA, ND, SD. Find me at FirstTimeHomeBuyer-MN.com - Cambria Mortgage, NMLS 274132
Barclay Butler (Barclay)
#83 ranked lender in Illinois - 89 contributions
You do not have to remove those lates they are old. We do loans with lates on the credit report all of the time. I lend in CA, FL, IL, GA, NC, SC, & TN for residential loans, and lend throughout the country for commercial loans. We can go down to 500 scores for VA & FHA. Barclay Butler. NMLS 225269.www.barclaybutlerfinancial.com
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