1st time Loan

[Anonymous]

So about a month ago I was trying to get approved for a mortgage thru wells Fargo. I had a 605 middle fico score. And was denied after my offer went out on the house and was accepted. But I found this web site and it helped me jump my score up to a 650 middle fico(using score watch) in less than a month doing a little bit of work and research. So first off thanks everyone for all your help. And 2nd I know I have spoken to a lot of people in the last month and if anyone I spoke to wants to close my loan please let me know. I have a federal tax lien that I have been repaying with installment agreements for the last 2 years. Purchase price is 225k with seller paying 6k of closing cost. I would like to put down as little as possible but no more that 3%. Please msg me for my work email so we can discuss in detail but my scores are

Using Score watch

Transunion 659

Equifax 627

And on 4/18

I was given a credit report

and had

602 TU Fico Classic 04

655 XPN/ Issac Model II

590 EFX FACTA BEACON 5.0 SCORE

Now like i said this is based off score watch for 2 score

and using the old score from mky previous report

TransUnion	659	4/25/2011	5/30/2011	View
Equifax	627	4/25/2011	5/17/2011	View

[ShanetheMortgageMan]

Did you get your middle score of 605 from Wells Fargo?  If so, it appears your middle FICO score is now 602, down from a 605.  What was the reason you didn't get approved with Wells Fargo?

[Anonymous]

they said i did not meet their credit score guidelines

[ShanetheMortgageMan]

I believe Wells Fargo needs more of a down payment for your old FICO score, so if you had it then your score may have been OK.  

I also see the scores at the very bottom of your original post now, I missed those initially.

So if on 4/18 you had your credit checked by a mortgage lender, and your EFX was 590, and just yesterday at myFICO.com it's a 627, then a lender should now also pull the 627 from EFX.  Your 655 XPN score probably has remained the same, if not increased.  But unless you know what your myFICO.com TU score was on 4/18 or before, your actual TU score may or may not have changed much from the 602, as the myFICO.com TU score doesn't use the same Classic 04 scoring model that lenders use.

Worst case your mid score appears to be a 627, potentially higher, and that is OK with most lenders FHA programs right now.  3.5% is the minimum down payment with FHA though, unless you buy a HUD owned home and then in some areas just a $100 down payment can be possible.

As long as you have made all of your IRS tax repayment plan payments on time then you shouldn't have to pay them in full to get approved, but the payment will be included in your debt ratio.

[Anonymous]

I'm curious about Wells.   I read all over the place that they have relaxed FICO requirements but I haven't heard many stories of people actually being approved.   Has anyone heard of anyone being approved below 600 with Wells recently?   I'm wondering if this is just BS to get people in the door.

[ShanetheMortgageMan]

There could be a large percentage of the people who are applying may not be the ideal low-score borrower that Wells Fargo wants to approve anyway - lates in the last 12 months, higher debt ratios, no reserves, etc.  So they may be approving people, but since the average sub-600 FICO score borrower is likely to have more recent negatives than someone with 640+ scores, there is a lower approval percentage for lower score applicants.