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Getting closer to 640.....a quick question

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mrordinary
New Contributor

Getting closer to 640.....a quick question

Hey everyone. I'm hoping to do a USDA/FHA app possibly in mid July, but only if I can get mine and my wife's score to 640 mid. Currently, I'm at 620 and she's at 587 (EQ FICOs)

I have 3 unpaid charge offs (Macy's, Discover/HSBC, and CapOne) on my credit that are all 3-4 years old, and out of SOL. These are all showing balances but not affecting my utilization according to my Equifax from here. These have not "updated" on my credit since 2008-2009. I'm afraid to pay/settle with them prior to applying for the mortgage due to the updated balance looking like new derogatory activity. Am I correct in thinking this? We are building/new construction and I don't know if the "pay at closing" will apply to us since closing would be 5-6 months away. Advice?

Starting Score: 620
Current Score: 649EQ/640EX/642TU
Goal Score: 700


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Message 1 of 15
14 REPLIES 14
mrordinary
New Contributor

Re: Getting closer to 640.....a quick question

I forgot to add, as a side note, that I will be going from 212% utilization to 1% by either paying off or having LVNV remove a $1200 collection acct (why is this caculated in my util??) plus paying my CapOne card down to $5.This move will hopefully net me the 20 points I need. Anyway, the big question is to pay or not to pay? I want to app!!


Starting Score: 620
Current Score: 649EQ/640EX/642TU
Goal Score: 700


Take the FICO Fitness Challenge
Message 2 of 15
Tpelc23
Regular Contributor

Re: Getting closer to 640.....a quick question

Your best bet is going to be to find a loan officer you trust and ask him or her what they think would be required. Ever lender is different and depending on how old the are and how much they may or may not make you pay them. Wish I had a better answer.

2/28/12 -TU FICO 646 3/28/12 TU-FICO 647 4/19/20 TU-662,
2/28/12 - EQ FICO 557 3/14/12- EQ FICO 600 3/16/12 EQ FICO 623, EQ FICO 628, 7/2/12 662
2/20/12 - EXP FAKO 620 3/16/12 FAKO 631 FAKO 643 3/28/12 655 (MTG pull) 5/7/12 698

CURRENT GOAL MID 640 LONGTERM 700 CLUBSmiley Happy
Message 3 of 15
jules0580
Regular Contributor

Re: Getting closer to 640.....a quick question

Yes talk to your loan office. for USDA if you have a 640 score they dont make you pay them. I believe FHA they are requiring judgements be paid off in most cases however.. if you are gonig to pay off that one collection as for a pay for delete.. dont just pay it off.. USDA doesnt allow for collections that were paid off in the last 12 month so its definitely something you would want done at the table.  Also I thnk even with new construction you can do pay at closing type things for stuff like that.. the preapproval will just list it with conditions.

Message 4 of 15
mrordinary
New Contributor

Re: Getting closer to 640.....a quick question

That answer is just fine! That's exactly what I'll do. I want to resolve the LVNV before I go because those jerks added the account 9/2011 and didn't send a dunning. Since this is under a year old, I'd just as soon resolve this asap. They report every month anyway so the new, paid activity won't make any difference on this one. Thanks Tpelc23!

Starting Score: 620
Current Score: 649EQ/640EX/642TU
Goal Score: 700


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Message 5 of 15
Anonymous
Not applicable

Re: Getting closer to 640.....a quick question

Usda is ok with collections and judgement not paid as long as you pay them before closing. I'm about to close on a USDA direct and I had an unpaid judgement and two unpaid collections. Was required to pay them. I did. And now were closing in July
Message 6 of 15
mrordinary
New Contributor

Re: Getting closer to 640.....a quick question

Thanks! What was your mid score Sarahnjess05?

Starting Score: 620
Current Score: 649EQ/640EX/642TU
Goal Score: 700


Take the FICO Fitness Challenge
Message 7 of 15
Anonymous
Not applicable

Re: Getting closer to 640.....a quick question

I applied in feb 2012. So my score where almost the same as now. 652 670 698
If you decide to do a USDA direct ask anything u like. This board was the main place I got any info onthe loan.
Message 8 of 15
jcstarkey8826
Established Contributor

Re: Getting closer to 640.....a quick question


@jules0580 wrote:

Yes talk to your loan office. for USDA if you have a 640 score they dont make you pay them. I believe FHA they are requiring judgements be paid off in most cases however.. if you are gonig to pay off that one collection as for a pay for delete.. dont just pay it off.. USDA doesnt allow for collections that were paid off in the last 12 month so its definitely something you would want done at the table.  Also I thnk even with new construction you can do pay at closing type things for stuff like that.. the preapproval will just list it with conditions.


Maybe Im reading this wrong, but are you saying that USDA doesnt allow you to have paid a collection in the past year, but wants you to pay it at closing? Im just curious because I paid a charge off not CA, but am wondering if the fact that I paid it within the last year will DQ me? and it doesnt make much sense to me.

In my wallet: Discover it 6800 CL, Capital One Quicksilver Sig 5k CL, Chase Freedom 4k CL, GCU Patinum Visa 1500 CL
Message 9 of 15
Anonymous
Not applicable

Re: Getting closer to 640.....a quick question

I think this is a YMMV depending on your loan officer. I had to pay mine before closing.
Message 10 of 15
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