I have a couple of questions regarding payment history and late payments.
My husband and I were late on a few car loan payments the end of 2016 due to 2 different water leaks and being stuck with 2 months of $400 water bills. The loan is was paid off a few months later but will this mean we will not qualify until it’s been a year since the last late payment?
Also, we don’t carry a lot of credit and have very small credit card balances. We’ve never been late on a payment in over 3 years but the payments are very small. Will this still count towards showing on time payments?
Was it more than 30 days late? And did it show on your credit report? Then it shouldn’t be an issue. But your mortgage counselor will be able to tell you for sure. In regards to your credit card payments, it doesn’t matter how small as long as they are made on time. I have no credit cards and was able to use my payment history from my 3 student loans with payments totaling under $120.00 combined. You can also use alternative credit from payments on bills like your cell phone or car insurance if needed. If you haven’t started the program yet, I recommend getting the ball rolling now. I started over a year before I was eligible for pre-qualification. I was saving, learning what mistakes to avoid, my local real estate market, and found a great realtor who is experienced with closing NACA loans in the meantime. I believe the prep is having a positive impact on my current purchasing experience.
Payment history is really important with NACA. Although I am not expert in what they will say, this was before NACA. Perhaps they will make you write a letter of explanation as to why it was late and what have you done to correct the issue.
E.G.: Late due to circumstances out of my control that missed xxx payment. However, we have since paid the loans off and are living on a written budget, so that we dont miss any future payments.
Just an example of course, but ask your counselor, they will tell you what the best way to go through this.