@Anonymous wrote:The convential loans won't allow a middle score as low as 616 I thought...
TBH I wouldn't likely shop conventional at that score; FHA is more forgiving there unless the timeline on the collections throws that off. Fannie even if you put 20% down at 620 you're looking at a 3.25% increase over their base rate (those with 740 or above), or more to the point: your APR be something like 80% higher than FHA realistically... it's even worse if you're chasing a 5% down loan.
Here's the actual document governing the pricing adjustments for Fannie, but if your LO is talking conventional at 620, I'd be skeptical and would second the recommendation of finding another lender: nobody should be getting a 7% mortgage right now.
https://www.fanniemae.com/content/pricing/llpa-matrix.pdf
How close to minimum downpayment / reserves are you at? I would see if I could get those collections deleted by negotiating for their removal (pay for delete) or other options. Post over in Rebuilding on the specifics of them maybe there's something you can do with it.
I also wouldn't be applying with 60% utilization if that is non-trivial debt: you're going to be incurring expenses with new homeownership, and should expect to increase your debt burden unfortunately as a result. Just keep what you can afford clearly in mind.
DLG is right though there are loans happening sub 600, just not conventional.
