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New Visitor
GL1960
Posts: 4
Registered: ‎07-07-2007
0

Fico Score Mortgage Help

Hi, As of yesterday I was eliminated from the possibility of getting a mortgage based on my mid score of 588. My mortgage broker said subprime low is now 600 for 95% mortgages. I was planning on purchasing a home for $180K w/5% down. I make 60K a year. Now I find myself in major FICO repair mode and am considering selling my car to eliminate the 300/mo pmt for starters. I'm about 4K in cc debt with 50% balances that I'm paying down as rapidly as I can. Any other suggestions? I am a single parent and would also like input on possible assistance with that. Thanks
Valued Contributor
John060675
Posts: 1,126
Registered: ‎08-29-2007
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Re: Fico Score Mortgage Help

Do you have any baddies?  If so GW and PFD them.  As you know, keep paying down those CC's until it is under 10% utilization, and keep it there.
 
Be patient, it will happen.

Starting Score: 583 EQ, 612 EX, 569 TU
Current Score: 658 EQ, 648 EX, 618 TU
Goal Score: 720 EQ, 720 EX, 720 TU


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Valued Contributor
John060675
Posts: 1,126
Registered: ‎08-29-2007
0

Re: Fico Score Mortgage Help

Oh, one more thing....I would not sell the car.  Continuing to pay in a timely manner will only help.

Starting Score: 583 EQ, 612 EX, 569 TU
Current Score: 658 EQ, 648 EX, 618 TU
Goal Score: 720 EQ, 720 EX, 720 TU


Take the myFICO Fitness Challenge
Regular Contributor
VLGaffEsq
Posts: 126
Registered: ‎05-12-2007
0

Re: Fico Score Mortgage Help

I feel your pain, especially because I was in a similiar position as yours.  Your main goal should be to RAISE your FICO score to allow you to obtain a mortgage that is not subprime (you NEED to get above 620, or even 660).  The mortgage industry is in a freefall these days with programs changing daily, but your best option in trying to obtain a mortgage is to work from strength (ie, the higher your FICO score, the more options and programs that will become available to you).  Keep paying down your credit debt, as that is the best way to riase your FICO score in the quickest possible manner.
 
On the car issue, yes it helps to have that positive tradeline and that installment loan on your credit report.  However, if selling your car will alleviate you of that monthly car payment and auto insurance, plus if your car is worth more than you owe and you can make some money on selling it, I say do it.  (So long as you have nearby public transportation and access to a car when needed...use "Flex Cars,", for example).  I sold my Acura RSX six months ago, put 5 K. in the bank and paid down some credit card debt and now I rent out my private garage space at my condo (which is 2 blocks frm the metro station).  The money I save is now helping me get my FICO scores over 700 and eventually over 720 - 750, which is my goal before I refinance/cash out with my condo I purchased less than a year ago (and it has increased in value almost 100K. since I purchased it).  Everyone's situation is different, but I wish you well in your efforts!
 
 
Valued Contributor
Lady_Scarlet
Posts: 2,385
Registered: ‎09-10-2007
0

Re: Fico Score Mortgage Help

Much of my advice can be influenced by where you live but worth investigaring.
 
 
Look for "Affordalbe Housing Programs" in your state.  Look for an Affordabe Houing Certified Realtor to help you.  Many of the AH programs can deal with a mid 500 credit score and you can get closing help with some of them.
 
AF programs have income limits (but you are a parent so that helps), required credit counseling, homeownership counseling, etc.  BUT, you can get your first home!
Now a member of the UNOFFICIAL 700 Club - Plus scores of 734-734-747
Frequent Contributor
monro411
Posts: 382
Registered: ‎05-15-2007
0

Re: Fico Score Mortgage Help

[ Edited ]


GL1960 wrote:
Hi, As of yesterday I was eliminated from the possibility of getting a mortgage based on my mid score of 588. My mortgage broker said subprime low is now 600 for 95% mortgages. I was planning on purchasing a home for $180K w/5% down. I make 60K a year. Now I find myself in major FICO repair mode and am considering selling my car to eliminate the 300/mo pmt for starters. I'm about 4K in cc debt with 50% balances that I'm paying down as rapidly as I can. Any other suggestions? I am a single parent and would also like input on possible assistance with that. Thanks

Try for an FHA loan.  They dont look at your score at all.  They only look at your report for the past two years.  They require at least 3% down.  Dont give up.  My situation is similar to yours.  My overall goal is to be in the position to buy a new home within two months.  I will pull my scores Friday to see if I can qualify for a 95-100% conventional loan.  If not I am going to try FHA.  Hope this helps.


Message Edited by monro411 on 09-13-2007 11:11 AM
New Visitor
GL1960
Posts: 4
Registered: ‎07-07-2007
0

Re: Fico Score Mortgage Help

Thanks for the reply I appreciate it
New Visitor
GL1960
Posts: 4
Registered: ‎07-07-2007
0

Re: Fico Score Mortgage Help

Thanks so much for the great info!
New Visitor
GL1960
Posts: 4
Registered: ‎07-07-2007
0

Re: Fico Score Mortgage Help

Thanks for your reply, good luck, I will pursue FHA

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