Help! New FHA Rules

Anonymous · ‎03-02-2008

The New FHA underwirting rules could cost me alot of money.

My score is around 545 new underwriting guidelines want a 580 or higher. I have to get the score up quick.

I was approved but now with the new changes I'm not. They tell me this 2 days after I went to contract.

no bankruptcies. a few old debts that they wanted me to pay at closing totaling less than $500. I have no Car payments or credit cards. My income is around 100k.

I only have 30-45 days to get my score up. What can I do? I'd like to keep it ethical but I stand to lose several thousand if I lose this house.

Any help would be greatly appreciated

Message Edited by nyuplink on 03-02-2008 02:57 PM

safetylea · ‎03-02-2008

Good luck,

i tried getting refinanced with my Mortage co ( Wells fargo) they siad that the FHA loan will not go through because i have a water well!!!!!!!!!!!!!! Bull %^*%^* on that according to another company.

But

safetylea · ‎03-02-2008

Good luck,

My mortage co ( wells fargo) would not refinance me, so they tried FHA. Wells fargo told me that FHA will not refinance my home because I have a water well!!!!!!!!!!!!!! Bull &&*&*&*() according to another Finance co. Wells fargo will not because, they can so no. My credit score is 640 higher than it was when I got the $150k loan in Oct 06', I have no new bad reports on my credit report ( have 2 but they are Zombie debts, one's that are 5-almost the miracle age of 7 years. Also they were already on there when they financed my home, my income is over $125 for the past 2 stright years, I have made 32 house payments in 16 months, so there is no reason for them not to refinance the loan, period.

Any changes to your credit for the good, will take 30- 60 days, again good luck my friend

FL

Anonymous · ‎03-02-2008

Getting scores up can be easy if you have revolving debts-

or inaccuracies that can get cleaned up-

This requirement is because of PMI-

So option B is to put 20% down.

nyuplink wrote:

The New FHA underwirting rules could cost me alot of money.

My score is around 545 new underwriting guidelines want a 580 or higher. I have to get the score up quick.

I was approved but now with the new changes I'm not. They tell me this 2 days after I went to contract.

no bankruptcies. a few old debts that they wanted me to pay at closing totaling less than $500. I have no Car payments or credit cards. My income is around 100k.

I only have 30-45 days to get my score up. What can I do? I'd like to keep it ethical but I stand to lose several thousand if I lose this house.

Any help would be greatly appreciated

Message Edited by nyuplink on 03-02-2008 02:57 PM

Anonymous · ‎03-02-2008

Thanks for the reply. I have no debt. No car payments, no credit cards. I have a great steady income. I gave the underwriter all the letters from electric, telco and cable co's. I have canceled rent check going back 3 years at the same address. I have asked about the 20% down. I was told they will not look at anything with a score less than 580 I just don't know what to do now. I haven't slept since they called me friday. My next step is getting a buddy to come on the mortgage with me. I'd really hate to to that. But Id lose the appraisal, home inspection, lawyer fees, and possibly the money I put down at contract. PMI its a FHA loan. Don't you have PMI no matter what you put down

Message Edited by nyuplink on 03-02-2008 08:55 PM

Anonymous · ‎03-02-2008

Thought about piggy backing someone else's credit card? HSBC cards, if someone has a decent history is a good one for sure, they add you as an authorized user, and poof, next month you report as if you had the account yourself and don't get credit pull to boot! Just don't have someone add you that hasn't paid bills well.

Anonymous · ‎03-02-2008

I thought piggybacking WASN'T included in scoring anylonger?????

Anonymous · ‎03-02-2008

Well if it wasn't there the first time the lender pulled and on all 3 cbr's showing 3 years history it'd be hard to explain...tell em they had the wrong ssn and reported to the wrong cba person? But ultimately they can't see or know if you're the primary, joint, authorized user, it all reports the same to each.

sh9730 · ‎03-02-2008

NY,

Obviously you have SOME credit or you wouldnt have a score at all....as I said on the other post (In general credit) Get those negatives off first! My guess is that alone will raise your score enough to compensate. A judgement (for those reading here he has said he has a judgement on his account that is not his, as well as a few small collections that are his), is killing your score!!

Also, again, get those collections to agree to pay for delete if at all possible.

Just those things may easily bring you above the 580 mark.

But if not...try and open a secured credit card....you will take a small hit for the inquiry and the new credit, but it may improve your mix of credit and make up for it...(no guarantees on this one....do this only after you get as many of the negatives removed...that is your highest priority)

All of this will take a little time, but hopefully not the 30 days you have. Should you have some success with some of these items, you may need to get a Rapid Rescore (your mortgage broker should know what that is...) in order to have some of these quick fixes posted to your credit report in time.

sh9730 · ‎03-02-2008

Oh, also the PMI issue doesnt apply with PMI. Yes all FHA loans have PMI and they are not risk based (yet!). So dont worry about that part for now.