Is it possible?

[Anonymous]

I've been working on my credit over the last month or so in hopes that my wife and I would be able to purchase a home sometime over the summer.

2 weeks ago my scores were TU - 551 Ex - 549 EQ - 554. I've paid off all of my negative accounts since that date and actually had a CA agree to update the credit bureaus immediately rather than waiting the "30-60" days that stated it would have taken otherwise. I just rechecked my scores and they have changed a little...They are now

TU - 551 EX - 549 EQ - 599. With the changes and improvements I've made I'm almost certain I can break the 580 barrier once the other bureaus and CA's catch up however, in the mean time my wife has become attached to a house on the market in our area and our window is closing on being able to get it.

Do I have any options to either A) decrease the turnaround time for my scores from the updates, or B) obtain a mortgage with my current scores?.

My payment history is clear for about 3 years now with the only exception being a 30 day last October. My debt to income is very low, I've only got my two car payments now and they don't total more than $550.

[Anonymous]

Two things I can think of. First there is a post no here in the last week or so about many lenders going up to 620 as a minimum, you might want to hunt for it. Second, most lenders are going to want no lates for 12 months. You had one in Oct so you may have to wait until fall.

[Anonymous]

Unfortunately a lot of lenders are continuing to raise minimum requirements. I believe most FHA lenders are at 600 and some even 620... most of them are moving toward 620 right now. Your best bet would be to start having communication with a couple of local lenders (be wary of some of the 'big guys' because they aren't always updated with their information). They can give you advice on what needs to be done without pulling your scores (inquiries lower your score).

There is a rapid rescoring that can be done but i honestly don't know much about it.

Do you know why your scores are so low? If you have a clean record for 3+ years there has to be something recent going on keeping your scores lows. Maybe high credit card utilization or lack of mixed accounts?

[Anonymous]

Well, the last negative item was added to my report just under 3 years ago (except the one 30 day late I mentioned above). I don't currently have a CC, however I do have one savings loan through my credit union and 2 auto loans. One of the auto loans has been reporting with no negative comments since early in 2006.

 My credit utilization is actually not too bad, my car payments are the highest percentage since I generally carry around a $100 balance on my bank loan. 

I do have 6 collection accounts that I have been going through the PFD process with, I had a couple that agreed to this and a couple that didn't so far. All the collection accounts are fairly small ( < $300) and I have the cash on hand to handle these, I am just working on negotiating a positive result with the CA's.

With regards to the FHA standards, I am working with a local broker and he has assured me today that he's double checked and still has some lenders that are operating with the 580 bottom line. I'd like to get something situated before those lenders jump on the bandwagon...I'm a bit bummed because the "Dream Home" I mentioned above has been getting a lot of attention over the last couple days and I think if I can't do something to expedite the process I think someone else is going to beat me to an offer.

Message Edited by EmtFFKev on 02-23-2009 10:37 PM

[WannaHouse]

If you have the money, and are waiting for the CA's to update paid accounts, ask your lender if they do Rapid Rescores. It maight cost you 250-300 bucks, but if you want a fast update on scores, it just might do it for you.

Good luck on your dream home!