@trc1962 wrote:
When I started this process I wondered if my score would ever come up but they have approved to 615, 640 and 652. I have always thought the only option was FHA because of the paid collections on my credit report. I have 2 unpaid charge offs less than $2000 and am scared to contact the companies as it opens Pandoras box. If I got these paid is their any possibility for a conventional loan or not? I have always thought I would need to go FHA until time has passed and these fall of my report and I can refinance to conventional. Any ideas are appreciated, I have learned so muc on this site and have pulled my report out of the gutter.
I would say that with your current scores, FHA is going to be your best route for the time being. Conventional loans typically require a mid-score of 660 for approval, though I have seen (rarely) a few be approved with lower than 660. Even if you are approved for a conventional, your interest rate with your current scores is going to be higher than your interest rate with an FHA loan. With your unpaid C/O, you would have to pay those, or be on an acceptable payment plan, before qualifying for a conventional - not sure about payed/unpaid C/O and FHA loans. I would say that your best course of action is to improve your scores as much as you can, ask for PFD on your C/O, and save save save! I hope this information helps.
