Mortgage Loans

[wakefield622]

Hi!

Thank you so much for answering my questions. My realtor just gave me the number for a LO. I will be calling tomorrow. 

I am looking online and seeing a lot about CS's needing to be 640. Is this true? My husband is 632 and the loan will be under his name. He has ONE 30 day late on a car loan from 3/2010. And A paid off collection from 7/2007. So, nothing recent at all. Anyone? 

[germaine47]

Your Middle Score depends on requirement from the Lender.  Some will go lower you may have to call and find one that may go lower.  Is your score a true Fico it may be higher than what you think.  I would try to get a good will for the Collection and ask them to remove it from the CRA.

[wakefield622]

Even if the collection is 5 yrs old? I read that for USDA you just couldn't have one in the past 12 months

Yes, I got my score from MyFico. 

[Tpelc23]

The reason for getting the collection off isbecause it will boost your score over a 640. A six 640 streamlines the process with most lenders.

[blessed92380]

There are lenders who will use a mid score of 620.  I just closed on my house 06/01/2012 with a mid score of 620.  We used the USDA Rural Guaranteed Loan and used American Financial Resources as our lender.  http://www.afrmortgage.com/#null

[Familywantsahouse]

We waited to get to the 640 mark.

[Eberron]

I am doing USDA and since I dont have a 640 mid they are requiring a couple other pieces of documentation.

for me it is 

1.    12 months cancelled checks on rent – to prove on time payments.  Required as score is below 640.

2.    Proof you have been receiving child support for the previous 12 months.

a.    Acceptable evidence includes deposit slips, cancelled checks,  or court records.

I am not sure this is for everyone he just told me he needed it because of the usda guidelines.

[wakefield622]

Okay. We have two CC's. One we can't pay down at the current time. But, the other has a CL of $500 and last night I paid it down to 9% usage. Last month it reported as $450 balance. Do you think this will help his score a bit? Just need a few pts!!

Thanks for all the replies!

[Tpelc23]

Yes that will help get a few more points. What is the balance and credit limit on the other card?