05-29-2012 06:59 PM
05-29-2012 07:08 PM
11-18-2012 04:11 PM - edited 11-18-2012 04:14 PM
Hello I just went through this last week. My husband and I were all set to close on our home when we found out after pulling credit again right before that his student loan had gone on his credit report and was in default. If you are in a loan rehab plan and your CAIVAR number is clear than you should be fine. His credit has since gone up 61 points to a 646 after dropping 100 points because of this. We only needed a 620 to get approved for the FHA loan. We have a letter saying that he has made his last 4 payments on time from the dept of education and we are bringing it to the loan meeting tomorrow. They just want to see that the orignal date of default was not in the last year to two years. Not the date that the newst company that bought the debt. I added him to my credit card as an authorized user and that's what brought his score up so quickly. Depending on when the credit card company reports is how fast your score will go up. I added him on the 8th of november and the company reports on the 14th. The score was showing on the 16th. Thank GOD! To be an authorized user you do not have to get your credit checked.
12-19-2012 10:28 AM
Here is our situation. We are in the middle of underwriting for a new construction home with USDA Guaranteed. We recently found out one of my husband's student loans came out deferrment and he did not know it. They reported late 3 times and has caused his score to drop 100 points! Our LO has asked him to pay for a rapid rescore with the defferment status letter. She says the CB should rescore and remove the lates. She tells me that UW will not look past this because his DTI is high. I have contacted ACS they refuse to do anything about the reporting even though they have backdated the defferrment to cover it. Please help me understand, I an going nuts!
12-19-2012 01:30 PM
Just keep in mind that the quoted sections are the min for FHA - the lender may have, and most do, more stringent requirements and thus their UW guideline may be auto denial for recent student loan CO's regardless if rehabbed or not. If it is their policy then you would have to search for another lender that has no such UW guidelines - a broker may be of more assistance here.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.