12-08-2012 09:51 AM
My husband and I are in the process of trying to purchase a new home (to be built) in Texas, it will be our first home. We were pre-approved with Bank of America for an FHA loan last week. However, when I spoke with our LO yesterday he informed me that as of Monday they are tightening the DTI to 25% for FHA loans with a FICO below 620. All we need is a pre-approval letter and earnest money to move forward with building, which we have. My concern is that if my FICO scores are not in the 620-640 6 months from now when it is time to close that we will lose the earnest money. I would like to have a back-up lender in place just in case my scores have not come up. My husbands scores are mid-high 600s and we just purchased a new car in October (currently only one payment reported), so he should get a few more points as the trade line matures. My FICO scores (mortgage lender pull) are 616 EX, 603 EQ, 602 TU. I have a couple collections that should be removed by January, I listed the negatives that will still be listed then below (still working to get some removed)*. Any lender suggestions or advice is appreciated!
Negatives (all collection balances are $0):
AT&T U-verse (Afni)* $669 - Assigned 01/12
Sprint (Enhanced Recovery) $186 - Assigned 05/09
Gables (Hunter Warfield) $331 - Assigned 10/10
Community College (National Credit Management) $282 - Assigned 09/11
Nelnet (Un-Sub, Closed) - 90DL 01/12
Nelnet (Sub, Closed) - 90DL 01/12
Comenity Bank (Closed) - 30DL 12/06, 30DL 01/07
Comenity Bank (Closed) - 30DL 11/10, 30DL 02/11
BOA (Closed) - 30DL 08/10, 30DL 04/11
12-09-2012 05:25 AM
FGMC does FHA at 580 & above - your rate will be a little higher though unless you get it above 640.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO