Can I get a conventional mortgage?

Anonymous · ‎09-10-2014

I was recently told that my three credit scores are 677, 617 and 616. The two low scores are apparently the result of a medical bill that went to collections. It was their mistake and I've contacted them for removal, which they say they will do.

First, any idea what kind of impact the removal will have on my two lower scores? My thinking is that it will at least get me to 620.

Second, are there any reputable companies that will give me a conventional loan? I already have an FHA mortgage so I don't qualify for that. The property I'm looking at is less than $70,000.00 and I may be able to put up to 20% down. I have several credit cards but I don't have any late payments on them or my mortgage.

DallasLoanGuy · ‎09-10-2014

you need a loan officer that understands credit.

maybe they can rapid rescore to remove a pay for delete med collection.

i think we would need the 620

Retired Lender

Anonymous · ‎09-11-2014

I was told by a lender that I could get a rapid rescore but they need at least a 660 for a conventional loan. Even though one of my scores is 677, I don't think the removal of that medical bill (which was only $48 ) is going to bump my middle score up that high. I can't figure out why there is such a large discrepancy in my score if that is the only difference between the three credit reports.

StartingOver10 · ‎09-11-2014

The size of the outstanding bill doesn't factor into the score formula. Its the fact that it is coded as a derog. So $48 hurts just as much as $4800 in the Classic FICO 04 formula. Check the rebuilding forum to see if you can do a pfd on that bill. Most lenders will overlook small medical bills so consider leaving it alone if you can't do a pay for delete (pfd).

Anonymous · ‎09-11-2014

It had been paid, it was their mistake. Thankfully, I got the letter confirming removal in the mail today. : I pulled my credit and there is one other thing on there, also their mistake which I have proof of in writing. They reported late payments for fees they were charging to an account closed at my request.. They removed the charges, so I wasn't deliquent. I'm going to submit both and see if I can get a rapid rescore.