Is my LO giving me false hope?

[makwis]

My husband and I were preapproved for a USDA loan (through Chase) back in May.  We started building our home and when we went to lock the rate in my credit report came back with a 60 day late on there and that dropped my credit score almost 100 points to a mid score of 589.  I'm disputing the 60 day late and my LO's credit company the deal with, my credit card company and myself had a conference call and the credit company said they would write something up and it would be fine.  Unfortunately UW came back and said that it wasn't good enough and that it would have to be rescored.  Long story short- I have to dispute the file formally and worry about closing on the home we've put so much sweat equity into.

My husband doesn't qualify for the loan by himself because that would put him at 54% DTI, which is too high.  He has a car loan and child support and I only have 2 small credit card balances.  My LO said that he feels we would still qualify because we do have that letter from his credit company along with our low DTI (together), and my husbands excellent credit score (mid score 798).  I, however, am not feeling that confident.  We have to pay extra money now to close as well.  Is he giving me false hope for getting that final approval and for closing?

[ShanetheMortgageMan]

What is Chase requiring?  Better scores from you?  If so, that is the requirement, no explanation from anyone will take it's place, so getting your scores up sounds like it's the only solution.  Chase might have a particular credit score you need to get to, did your LO tell you what that is?  If not, find out what you need your score to get to.  From your post it isn't too clear what is needed, other than "rescore", however no one conditions for a "rescore", they condition for your scores to be at a certain level, and the "rescore" is the means to getting your score changed in a quick manner.

[makwis]

They're not requiring me to get to any score at this point.  We have just sent them the file for final approval today.  Sorry for not being clear on this.

[ShanetheMortgageMan]

Gotcha, then what is the reason for needing to do a rapid rescore?  A rapid rescore is when items on your credit are updated on the credit bureau level, and then credit is re-pulled.  If your score is sufficient now, and Chase just needs the information on the credit report removed, then a "credit supplement" should be OK I'd think.  If that is what your LO has, then the ball is in Chase's court to make a decision.