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Established Contributor
MBOhio2
Posts: 945
Registered: ‎02-07-2011
0

Getting to 620...

[ Edited ]

02/04 UPDATE: While still keeping the possibility of a sub-620 loan in mind as a back-up, my current focus is on getting the 620 I need to get approved with my original lender!! Details of my journey, with updates, are below :smileyhappy:

 

Things are not looking good for my getting to 620 in the next few weeks and our current lender requires a 620 minimum score. I have paid $8K over the past 45 days to bring my utilization from 44% to 24% and I have received a 3 point score increase. Very depressing, but anyway, to the point. In order for us to close on the home we're building, which will be done in about a month, we may very well have to find a new lender.

 

The only thing really holding my score down are unpaid student loan COs (I have monthly payment plans on all of them) that occurred over 2 years ago, but that the lender continues to report as CO every month. My guess is that I'll have a middle score of about 610 when it's all said and done.

 

I understand that, in the past, BOA has accepted sub-620 credit scores for FHA mortgages. Does anyone know if they are still approving sub-620 FHA loans? Has anyone had experience with a sub-620 BOA loan and can tell me how it went?

 

Thanks in advance :smileysad:

Mid-2010 Starting Scores: FAKO EQ 476 FAKO EX 506 FICO TU98 575
Jan 2012 Current Scores: FICO EQ 604 FICO EX ??? TU98 623
Feb 2012 Goal Scores: EQ 620 EX 620 TR 620 (or just the middle to be 620!!)
Valued Contributor
boomhower
Posts: 1,863
Registered: ‎09-20-2011
0

Re: Sub-620 FHA with BOA?

Not sure about BoA but Wells Fargo will do 610.
Established Contributor
MBOhio2
Posts: 945
Registered: ‎02-07-2011
0

Re: Sub-620 FHA with BOA?

Thank you - that's very helpful so we have a few options because I have heard not-so-great things about BOA! Also, our house will be done very soon so beggars can't be choosers and it's good to know that we'll have a few options for getting approval.

Mid-2010 Starting Scores: FAKO EQ 476 FAKO EX 506 FICO TU98 575
Jan 2012 Current Scores: FICO EQ 604 FICO EX ??? TU98 623
Feb 2012 Goal Scores: EQ 620 EX 620 TR 620 (or just the middle to be 620!!)
Super Contributor
DallasLoanGuy
Posts: 6,337
Registered: ‎07-03-2007
0

Re: Sub-620 FHA with BOA?

i heard wells fargo would go even lower......

 

worth a shot

 




* While I try to visit the forum often, please feel free to contact me directly with a link to your post if I fail to answer a follow up question.

* Lending across the entire 'Great State of Texas' since 2004
Valued Contributor
boomhower
Posts: 1,863
Registered: ‎09-20-2011
0

Re: Sub-620 FHA with BOA?


DallasLoanGuy wrote:

i heard wells fargo would go even lower......

 

worth a shot

 


They will technically go to 580 but the downpayment is higher and I've only read of a couple cases where anything close to that low actually went through.

Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011
0

Re: Sub-620 FHA with BOA?

I have read one post since I started here in May about anyone closing with a score less than 620 and I believe it was WF.

 

 

If you get your utilization lower than 24% you could get there - I'm sure you know the drill -- have one account report 1-9% and the rest lower.  I seriously think that would do it. You are so very close......That's how I did it - If you find my old post "What will get me to 640" you can see a day by day play of how it all worked out.  Long post, but might give you an idea.  Do you have family you could borrow the money from since you don't want to lose the house you had built?

 

GOOD LUCK!!!!!!!!!

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Established Contributor
MBOhio2
Posts: 945
Registered: ‎02-07-2011
0

Re: Sub-620 FHA with BOA?

Booner - Thanks for your positive energy! Your success story has definitely boosted my hope!

 

Fortunately, we will have the finds to pay my overall util down to below 9% in about a week and half (no need to borrow) so that is definitely our plan! Within 2 weeks, all of my accounts, except one, will have a $0 balance and the one with a balance will be under 9%. However, given the very minimal movement I saw going from 42% to 24%, I'm just starting to lose hope that it's even possible for me to get to 620... I'm feeling like as high as I will get is 610 or 615.

 

But anyway, I'm trying to stay positive and we're going to do everything we can to get there and I'll update here in a few weeks.

Mid-2010 Starting Scores: FAKO EQ 476 FAKO EX 506 FICO TU98 575
Jan 2012 Current Scores: FICO EQ 604 FICO EX ??? TU98 623
Feb 2012 Goal Scores: EQ 620 EX 620 TR 620 (or just the middle to be 620!!)
Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011
0

Re: Sub-620 FHA with BOA?

Nahhh.  It'll go up!  I remember reading about the "sweet spot" being less than 20% for some people......You'll get it, I just know it.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Established Contributor
MBOhio2
Posts: 945
Registered: ‎02-07-2011
0

Re: Sub-620 FHA with BOA?

Booner - I just read through your post from July-August 2011 and it was super helpful because I am definitely going though a similar situation. I guess the only difference is that I'm not aiming for a better rate, I actually need the 620 to be approved at all or we'll lose the house we're bulding :smileysad: So did you end up being added as a AU? Can you tell me more about that? Was it a family member or something?

 

Here's a quick snapshop of both my current scores (though some are old now, but I can't pull current ones myself) and some facts about what's holding my credit score down:

 

My scores:

EQ = 601 (yesterday from myfico.com)

TU98 = 628 (yesterday from myfico.com)

EX FICO v1 = 583 (in Dec 2011 before paying LOC down from 37% to 24% - don't know current score)

 

EQ = 601 (yesterday from myfico.com)

TU04 = 604 (in Dec 2011 before paying LOC down from 37% to 24% - don't know current score)

EX FICO v2 = 618 (in Dec 2011 before paying LOC down from 37% to 24% - don't know current score)

 

If my middle score is 620 with either of the above sets of scores, then I will be approved (lender uses two different scores sets). As you can see, I only need a few points.

 

My credit situation:

- Overall util of 24% (3 of my CCs have $0 balances, 1 CC has a $15 balance, which is already paid off and just waiting for update, and I have a large LOC with a 29% util that is my only revolving debt - In the past 6 weeks since lender first pulled my scores, I have paid my overall util down from 42% to 24%)

- I have a few 30-day lates that are all just over 2 years old

- In December 2009/January 2010, I had 11 student loan accounts charge off; the balance on these is about $100K and I have been making on-time monthly payments toward all 11 of these for over a year now, however, they are still COs and reflect on my credit reports as such

- No collections, no records and 3-4 inquiries

 

Soooo... I just paid another $900 toward the LOC on Thursday (Feb 2nd) and used the BOA update trick, so the new balance should update with the CRAs today. This will take my overall utilzation down to 21% and I'm crossing my fingers I get a SW alert in the next few days. On Feb 10th, the CC with a $15 balance will report the current $0 balance, so then only one of my revolving accounts will have a balance, the LOC. On Feb 15th and 17th, I plan to make two payments that will take my utilization on the LOC to just under 9%.

 

Tell it to me straight - does anyone think I can actually get to 620??

 

Also, quick question, when everyone says that your util % should be under 9%, they mean the individual util % on that one account, not the overall util %, correct?

 

Current hope = that I get a SW alert with some sort of bump for the most recent $900 payment!!

Mid-2010 Starting Scores: FAKO EQ 476 FAKO EX 506 FICO TU98 575
Jan 2012 Current Scores: FICO EQ 604 FICO EX ??? TU98 623
Feb 2012 Goal Scores: EQ 620 EX 620 TR 620 (or just the middle to be 620!!)
Moderator
MarineVietVet
Posts: 14,953
Registered: ‎07-14-2009
0

Re: Sub-620 FHA with BOA?


MBOhio2 wrote:

 

 Also, quick question, when everyone says that your util % should be under 9%, they mean the individual util % on that one account, not the overall util %, correct?

 

 


What seems to work best for most people is to have one CC report a balance of <9% ($1 will work just fine) and all other CC's report a zero balance every month. This means of course that both individual and overall utilization will be <9%.

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".


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