cancel
Showing results for 
Search instead for 
Did you mean: 

Im goin in circles here! Please help!

tag
Anonymous
Not applicable

Re: Im goin in circles here! Please help!


@UpAndComing74 wrote:
After being excited that the tax rebate for first time homebuyers was extended I started my journey of credit restoration since at that time my credit union advised me that I needed at least a 620. My scores Were 517/542/572.  This was Nov of '09.  Now according to my fico my scores are TU 596/EQ 590.  I checked scores on True Credit and it shows TU 611/EXP 612/EQ 602.  B of A is telling me that I could qualify for an FHA loan with no minimum FICO needed.  BUT THEN when I call my credit union, i'm being told that I would now need at least a 660. All I want to do is find a decent starter home with Lennar, or KB and take advantage of the tax credit before it's too late.  Does anyone have any idea of the reason in variance of the above rules or requirements, or am I dreaming to expect to qualify for ownership before April of 2010? Please advise.  Thanks.

 

The difference in rules is do to added restriction by said banks due to the massive forecloser mess and/or people being upside down on their loans.  If you look at the general fha rules although they might have changed it, it says that a fico score isn't even needed to get a fha loan but the banks themselves are adding to the rules to cover their loan investment to you.

 

You might want to look into to loans like usda which will fund 100% of the loan but they have strict credit requirements as well.  Also check to see if your city/county has downpayment assistance grants that you might be able to qualify for.  As mickie said you need to get your cc utilization down and you should see a good size score bump.

Message 11 of 13
UpAndComing74
Regular Contributor

Re: Im goin in circles here! Please help!

Thank-You steelfan.  I hope that doesnt mean Steelers. as Im in Cowboy country. lol.  You answer makes perfect sense.  So it seems that the common thread is to reduce my utilization.  On 1/15 I will pay off one card and then only have a balance of 1400 out of 2000 on the remaining card.  So out of available credit of 3300, I'll have 1400 used which is 42%.  Then I guess its a wiating game for the CC companies to update the report.

Starting Score: 614
Current Score: 614
Goal Score: 700


Take the FICO Fitness Challenge

Message 12 of 13
MattH
Senior Contributor

Re: Im goin in circles here! Please help!


@Anonymous wrote:

The difference in rules is due to added restriction by said banks due to the massive foreclosure mess and/or people being upside down on their loans.  If you look at the general fha rules although they might have changed it, it says that a fico score isn't even needed to get a fha loan but the banks themselves are adding to the rules...


 Among other considerations, the Feds are penalizing banks with the highest default rates, putting pressure on them to tighten underwriting standards.

 

TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
Always remember: big print giveth, small print taketh away
If you dunno what tanstaafl means you must Google it
Message 13 of 13
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.