Sorry for missing this, I was out of the country and haven't had a chance to stop by.     Is the home owned free & clear or is there an existing mortgage on it, and if so, how much is the balance? As @FicoMike0 said, qualifying for a HELOC isn't so different than qualifying for a mortgage.  It requires a certain credit score, credit history free of blemishes for a certain amount of time, requires your income to qualify, and enough equity in the home.  The thing is with HELOC's is that every HELOC out there has slightly different qualification requirements than any other HELOC, and there are 100's of different HELOC programs out there, so the best plan is to get your borrowing profile a strong as possible so you can have your pick of the litter.  If the property has no mortgage on it, assuming your income qualifies, you should be able to get a HELOC with a limit up to 80% of the home's value with credit scores of 660 or 680.   Higher than that you could expect HELOC lenders to require higher scores, such as 700 or 720.  For top tier interest rates most HELOC programs will require 740-780 scores.  If you will not be occupying this home then there will be less HELOC options, credit score requirements will be higher, and your HELOC limit will max out at a lower % of the home's value.   ... View more

That's not a standard rule or anything, but portfolio lenders can make up their own rules as far as what is required to qualify and I could see a long time customer being given special consideration based on their savings patterns, spending habits, etc. so that they'd be approved for a mortgage.  Most likely local regional bank. ... View more

That's pretty quick.  How much do you think the home improvements will end up costing, total? ... View more

Using a line of credit for a remodel and then switching to a traditional mortgage once the work is finished is very feasible and pretty common. Since there is no existing loan on the home, the line of credit or equity loan would be the only debt on the property.  Once the renovation is complete and the value of the home has potentially increased, you just refinance that balance into a standard conventional loan to lock in a lower fixed interest rate.  What is your timeframe to complete the remodel? ... View more

HUD approved housing counselors are a great resource for scenarios exactly like this. They will conduct a complete review of the entire financial picture, including credit card debt and utility costs. They can often identify specific local resources for property tax assistance or utility programs that are not always easy to find through a basic internet search.   The most urgent issue to address is the property taxes and insurance. With a reverse mortgage, the loan remains in good standing as long as the homeowner lives in the home as their primary residence and keeps those specific items current. If they fall behind on taxes or insurance, it can trigger a default on the loan. A housing counselor can help you communicate directly with the loan servicer to explore loss mitigation options. They may be able to help set up a repayment plan or determine if your family member qualifies for an at risk extension, which is a federal program designed to provide extra time and assistance to seniors facing financial hardship.   In addition to housing counseling, you should reach out to the local Area Agency on Aging. These organizations are specifically designed to help seniors navigate financial and legal issues. They often have staff members who can assist with property tax deferral programs for seniors or help with applications for the Low Income Home Energy Assistance Program (LIHEAP) to lower utility costs.  Many of these agencies offer in person appointments too, which can be very helpful for someone who is not comfortable with technology.   Starting with a HUD approved counselor is the right first step because their services are usually free or very low cost for seniors in this situation. They'll act as a professional advocate between your family member and the mortgage company to ensure that no steps are missed. Focusing on the property taxes and insurance first will secure the home while you and the counselor work on a longer term plan for the other debts.   ... View more

The term is typically called a "mid cycle" or "off cycle" update.   What are your current mortgage scores and what type of mortgage are you trying to qualify for? ... View more

It would improve the chances that AUS would issue an Approve response, and an underwriter can override automated underwriting findings if they feel there is risk that AUS hasn't considered, but this wouldn't be one of those situations in my opinion. ... View more

A human underwriter would look at when the accounts were actually charged off, not just the fact that they were updated again after payment. So if the original charge-off dates were in 2020, 2021, and 2022, that is what an underwriter is going to care about most.  Where this can become a problem is with the automated underwriting system. DU analyzes the credit report data that is being fed into the system, so if the accounts are being reported in a way that makes them look like fresh or unresolved derogatories, that can hurt the findings even if the debts were paid and resolved. Whether that is enough to change the approval decision depends on the rest of the file, including score, reserves, payment history, DTI, and the overall strength of the borrower profile.   On pricing, the charge-offs do not create a separate LLPA by themselves just because they exist on the report. The practical pricing impact is these accounts can hurt the credit score, and the credit score is what drives the pricing bucket and LLPAs. So the real-world effect on rate and cost is through the score and the AUS risk assessment, not through any “paid charge-off” pricing hits.   ... View more

I wouldn't pay off the auto loan now, if the $600/mo payment is an issue for the DTI, then you can just pay it at closing in order to exclude it.   The equity in the land can be used to absorb some or all the closing costs the VA construction loan comes with.  The $10k+ you've saved can help get an automated underwriting approval, which is what most VA construction loan programs require (not many manual underwrite VA construction loans out there).   It seems like your credit cards may be paid off, but if not then I'd make it a priority to do the AZEO method by the time your credit is checked, to maximize your credit scores.    ... View more

@Thomas_Thumb wrote: Isn't the benchmark for best home equity loan rates still a 760 score or has it increased to 780? It'll vary by lender, but a lot of them have a 780+ credit score pricing tier and even a few even have an 800+.   ... View more

It's lender-specific, but I've found most still use 5/4/2's but there are many that use FICO 8's now, and often just a single bureau instead of a tri-merge.   ... View more

When was the child support collection and when was it paid?   How old are your credit cards and car loan?   Is your loan officer able to get an automated underwriting approval? ... View more

Yes, you could get a HELOC with the forbearance lien, however, unless the HELOC is willing to go into 3rd position on title, then the forbearance lien will need to be paid off with your new HELOC. ... View more

They won't ask for the Account A bank statements that the 401k withdraw was made into, unless you also transferred funds from Account A to Account B.  They only need to source deposits, not source what other accounts your funds go into.   ... View more

It would only apply to income that is exempt from federal income tax.    Is any of your pension Combat-Related Special Compensation (CRSC)?   I believe that is tax-free. ... View more

Unless your home has appreciated significantly in value, a reverse mortgage probably will not be an option unless you can bring in a significant amount of cash.  Generally, to get a reverse mortgage without having to bring in funds, one must have at least 40% equity in your home and often much more since the required amount of equity reduces as you grow older - so someone who is 65 will need a lot more equity in their home than someone who is 85.   Refinancing would extend your loan term, which in most circumstances would reduce one's monthly payment, however current interest rates are significantly higher than your current interest rate is.  Today, getting a 5.500% rate on a 30-year term would be an excellent interest rate, and on an $85k loan amount it would have monthly P&I payment of $482.62/mo, which is $60+ more than what you are currently paying.     Your PMI should automatically terminate once your loan amount gets to 78% of the original value of the home.  Assuming your home also appraised for at least $112k when you bought the home, then that would be after you've made 48 payments (see below payment schedule).  Is PMI still part of your monthly payment?  If so, then as long as your payments are current you should no longer have to pay it, and since it is been 65 months since your first payment due date of 8/1/2020, you might be entitled to a refund of overpayment.     If you do have a chunk of money, you can ask your lender if they allow payment recasting.  This is where after a lump-sum principal payment, the lender will recast your payment based on the lower balance and keeping the remaining term, which would lower your payment some.  For example, if you would pay $35k towards your balance so only $50k is owed, then over the remaining term at 3.375% your P&I payment would be $299.57/mo.   Before you make any additional principal payments in an effort to accomplish this, you first must ask your lender about recasting and their required process.   Maine also has a Property Tax Stabilization Program for those who are 65 years or older.   ... View more

This is actually a very financeable situation. Because the home is already owned free and clear and you inherited 50% of it, you don’t need a traditional down payment nor a gift of equity. Your existing equity is what functions as the down payment. If the property is worth about $396,000 and your sister’s half is roughly $198,000, then buying her out and pulling an additional $100,000 for improvements would put the new loan somewhere around $298,000. That’s roughly 75% of the property value, which is within the 80% LTV limit that conventional financing has.   What you were told about needing a “sibling buyout refinance” is basically correct, though in practice this is just structured as a conventional cash-out refinance once probate is complete and title is fully in your name.  At that point, you’d close on a new loan, use the proceeds to pay your sister for her share, and take any additional cash you want for renovations. There’s no waiting period after probate for inherited property, so the timing you’re describing fits well with how lenders handle these.  You do not need to pay her before the loan closes.   Your credit scores are strong enough for conventional financing, and your mortgage scores should put you in a solid pricing tier. The bigger consideration will be your monthly debt obligations. Between the vehicle loans, personal loan, and credit cards, you have a meaningful amount of monthly debt that will be counted in your debt-to-income ratio. Based on the income you listed, the loan size you’re targeting should still be workable, but adding another $20,000 to credit cards right before applying could tighten things.  The precise numbers would need to be run.   Overall, the lack of a cash down payment shouldn’t stop this from happening.  The main variables a lender will look at are the final appraised value, your debt-to-income ratio after all current debts and credit card balances are counted, and documentation from the estate and probate process.  With your credit profile and the amount of equity in the property, this is a very typical scenario for a conventional cash-out refinance used to buy out a sibling and access additional funds for improvements. ... View more

Are you under contract?  If so, did the builder required you to get pre-approved by their preferred mortgage company?  If so, how did that go? ... View more

Mortgage lenders don't care about specific creditors, a tradeline from Chase is looked at the same as a tradeline from Aspire.  If your only concern is how a lender would view you having an account from Aspire, then I wouldn't sweat it and I also wouldn't close the account either.   ... View more

A mortgage broker will likely be your best bet at finding competitive bank statement loan terms.    You'll need 12 to 24 months of bank statements for the account the business income is being deposited into, if it's a business bank account usually lenders will give you 50% of the deposits over that time period to calculate your qualifying income.  You'll also need evidence of your % of ownership in the business, whether it be a letter from your CPA or other filed documentation.  You'll also need evidence your business is actively operating, such as a business license and client invoices within the past 30 days.  Tax returns are not needed.    These loans take about the same amount of time as a conventional loan, roughly 30 days.  There are pre-approval processes you can go through just the same.  I'd say the most annoying part is that underwriters will ask about confirming certain deposits are business income, so you have to provide client invoices to match, so make sure you keep onto those or can generate them again from your invoicing software.   ... View more

Thank you, so in March 2026 you'll be 1x90, 2x60 and 4x30 in the last 24 months, which is approvable.  The fact that you can put down 20% will allow you options, even if you have to go with a Non-QM loan program.    I would wait until March before applying and having your credit checked, as a 90-day late payment in the past 12 months will hurt your options if you have to use a Non-QM loan.   You'll also be less likely to get an automated underwriting approval for Fannie Mae or Freddie Mac (which is really what your goal would be).  FHA financing is another option to consider as well, but even with a 20% down payment you'll have to pay MIP each month (FHA's version of PMI) and with the mortgage payment history you'll need an automated underwriting approval for as well.  When the time comes, in order not waste time, you should work with a loan officer who you can run your loan through all 3 options, and I'd feel confident about getting approved for one of them.   Since you mentioned buying new construction, a lot of builders offer incentives tied to using their in-house lender, so make sure to ask about those.   ... View more

Can you tell us which months were late and how many days late (30, 60, 90) those were?   I made a table below, you can copy/paste it into your response, and then put an "X" if that month was made on time, and then 30, 60 or 90 in whatever month/year those were in.   That'll help determine when you should apply.   Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec 2024                         2025                           How much of that $390k did you want to still have after closing? ... View more

This has been fixed for me, FYI. ... View more

You're welcome.  Rather than pointing you to one specific name, as that is against the FICO forums terms of service, the bigger recommendation is where to look.  For Non-QM loans, people generally have the best experience working with an independent mortgage broker who specializes in Non-QM or a correspondent lender that actively funds Non-QM loans.   Most large banks and many credit unions mainly focus on conventional, FHA, and VA loans. When they do offer Non-QM, it’s often limited or very conservative. Brokers and Non-QM-focused lenders, on the other hand, work with multiple investors offering programs like bank-statement loans, DSCR, asset-depletion, interest-only options, and scenarios involving recent credit events.  A good Non-QM broker can shop your situation across several lenders at once and match you with the right program from the start, which usually leads to a smoother process and better odds of approval.     When vetting a broker or lender for Non-QM, focus on experience and specificity. Ask what percentage of their business is Non-QM and which programs they close most often (bank statements, DSCR, asset-depletion, interest-only, recent credit events, etc.).  A knowledgeable Non-QM professional should be able to discuss guidelines comfortably, explain common deal-breakers upfront, and outline which lenders are the best fit for your scenario before pulling credit.  It’s also a good sign if they work with multiple Non-QM investors/lenders rather than a single in-house program, and if they set expectations clearly around documentation, pricing, and timelines instead of making broad promises. ... View more

FICO's own Julia May also blogged about this last month at https://www.fico.com/blogs/where-things-stand-fico-score-10t-conforming-mortgage-market.     The transition is coming, currently estimated to be by the end of this year, though timelines in the mortgage industry have a habit of slipping. ... View more

You're welcome.  Yes, a mortgage broker would be helpful in your situation as it may not get approved with every lender, they could run it by all prospective lenders ahead of time to see which would be the best to start with. ... View more

If you're able to show you had the funds in your account to make the payments when they were due, then I think your situation would have a good shot of being accepted before the kids start high school.  Be prepared to write a letter of explanation to the underwriter for those late payments, and it should read less personal and more factual.  Something along the lines of, "From July through October 2025, my AAFES/Military STAR account became delinquent due to an oversight while I was managing an intensive family legal transition and establishing my children in my household. There was no loss of income or inability to pay. The issue was that this account was not set up on automatic payments and I failed to make the required payments on time. I take full responsibility..."    You can also point out strengths in the letter of explanation to like how it's been set up on auto pay, payments have been made on time ever since, and balance is kept low, as well as this is your only credit delinquency event.   ... View more

What was the reason for the late payments on the STAR account?   VA typically likes to see 12 months of clean credit, but if it was an isolated incident then less than 12 months can be acceptable even if you aren't able to get an automated underwriting approval. ... View more

Even though their minimum score is a 620 for conventional financing doesn't mean you qualify with a 620.  You need to also pass automated underwriting, which takes into consideration all aspects of your borrowing profile - a 620 credit score usually needs compensating factors to pass automated underwriting, such as 10% or more down, a lot of reserves in the bank after closing, and/or a low DTI.    You mentioned by switching to conventional financing you would avoid $400/mo in PMI, so does that mean you are putting 20% down?   With less than 20% down conventional financing will have PMI is why I ask.    Lastly, the interest rates with conventional financing at a 620 credit score are much higher than FHA rates with a 600 score, so even though you would be reducing or eliminating $400/mo in PMI, you would have a higher monthly P&I payment since the interest rate will be higher.    If you haven't already, you should ask the lender what the terms would be with conventional financing assuming you had a 620 score and would pass automated underwriting.  Make sure to compare the total monthly payment and not just the PMI portion.   ... View more

@pizzadude wrote: This has happened before if I recall correctly and eventually the landing page after logging in reverted back to the main forum versus what's happening now.   Yup, that's exactly what it seems like. ... View more