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Mortgage Score will not increase?

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Te3030
Regular Contributor

Mortgage Score will not increase?

I've been trying to get my mortgage scores up by paying down debt. Myfico scores has increased by 30-40 points but my mortgage scores have not moved. Any idea?

Message 1 of 8
7 REPLIES 7
StartingOver10
Moderator Emerita

Re: Mortgage Score will not increase?

Have you pulled the new scores?  The mortgage scores don't update automatically in your subscription like the FICO 8 scores, you need to actually get a new score report from here.  The mortgage scores only update 1 time per quarter (IIRC). Also, the mortgage score algorithm is more sensitive to multiple balances reporting.  Do you have multiple cc's reporting a balance?

 

Message 2 of 8
Anonymous
Not applicable

Re: Mortgage Score will not increase?

Not to hijack, but what do you mean by more sensitive to balances?  I have three cards one with $0, one around $50 and one that will vary.  

Message 3 of 8
Te3030
Regular Contributor

Re: Mortgage Score will not increase?

If a mortgage lender pulls the scores will they be updated? Or do you mean Myfico only updates mortgage scores quarterly?

Message 4 of 8
Anonymous
Not applicable

Re: Mortgage Score will not increase?

If you're on the Ultimate 3B plan from MyFICO, your scores only get updated every 3 months. If a new pull happens, you're updated immediately.

 

Are you doing everything right for max scoring? Only one card reporting a balance, low util, installement loan, etc.? Mortgage scores grow slowly but they do grow.

Message 5 of 8
StartingOver10
Moderator Emerita

Re: Mortgage Score will not increase?


@Anonymous wrote:

Not to hijack, but what do you mean by more sensitive to balances?  I have three cards one with $0, one around $50 and one that will vary.  


By "more sensitive" I mean that the mortgage score takes a dip when more balances report.  You have 3 cc's with one zero and two balances reporting. It would be better if you could have two report zero balances and the third report a small balance. You should see your score increase that way.

Message 6 of 8
Anonymous
Not applicable

Re: Mortgage Score will not increase?

I am having the same problem. I would really like to buy a home this summer and not have to resign another 12 month lease (in June). However, I have been diligently working on getting my scores up since my financial turbulence in 2012. My FICO 8 scores have increased over the year by roughly 100 points., but the Mortgage Versions havent budged. I have tried paying down revolving debt, keeping all payments current, utilizing less than 30% on CC, hiring a credit consultant (BluSky Financial / Lexington Law) to make mass disputes and issue challenges, etc....I just don't know what else to do in order to move the Mortgage scores. 

 

Here is my situation:

EQ: FICO 8: 575 (base) FICO 5: 574 (mortgage) ~1 point difference

TU: FICO 8: 608 (base) FICO 4: 572 (mortgage) ~40 point difference

EX: FICO 8: 648 (base) FICO 2: 546 (mortgage) ~100 point difference

 

I have updated my scores quarterly, and all versions are current as of March 2017. Even with FICO 8 moving up quickly, the mortgage versions arent budging no matter what I try. 

I do have unpaid collections on my account, but I am terrified to touch them since they are 5 years old (2012 was rough) and will fall off in 2 years, but would this be the ONLY driving factor as to why my mortgage score isn't improving? The only other thing I can think of is my student loans. I defaulted on those in 2012, and then had to go into deferment until I got back on my feet - but they have been current ever since.

 

If a mortgage lender would use FICO 8, I might be pore-qualified with an FHA loan. It just doesn't seem like anyone is using that version when it comes to mortgage lending. 

 

Not sure if I should just quit at this point and join the Renters4Life club...

Message 7 of 8
StartingOver10
Moderator Emerita

Re: Mortgage Score will not increase?


@Anonymous wrote:

I am having the same problem. I would really like to buy a home this summer and not have to resign another 12 month lease (in June). However, I have been diligently working on getting my scores up since my financial turbulence in 2012. My FICO 8 scores have increased over the year by roughly 100 points., but the Mortgage Versions havent budged. I have tried paying down revolving debt, keeping all payments current, utilizing less than 30% on CC, hiring a credit consultant (BluSky Financial / Lexington Law) to make mass disputes and issue challenges, etc....I just don't know what else to do in order to move the Mortgage scores. 

 

Here is my situation:

EQ: FICO 8: 575 (base) FICO 5: 574 (mortgage) ~1 point difference

TU: FICO 8: 608 (base) FICO 4: 572 (mortgage) ~40 point difference

EX: FICO 8: 648 (base) FICO 2: 546 (mortgage) ~100 point difference

 

I have updated my scores quarterly, and all versions are current as of March 2017. Even with FICO 8 moving up quickly, the mortgage versions arent budging no matter what I try. 

I do have unpaid collections on my account, but I am terrified to touch them since they are 5 years old (2012 was rough) and will fall off in 2 years, but would this be the ONLY driving factor as to why my mortgage score isn't improving? The only other thing I can think of is my student loans. I defaulted on those in 2012, and then had to go into deferment until I got back on my feet - but they have been current ever since.

 

If a mortgage lender would use FICO 8, I might be pore-qualified with an FHA loan. It just doesn't seem like anyone is using that version when it comes to mortgage lending. 

 

Not sure if I should just quit at this point and join the Renters4Life club...


Yes, the student loans are keeping your mortgage scores down because of the "recent" 2012 default.  How long have you had the loans out of deferment?

Did you ever rehab your student loans after default?  If you do that, it will help you tremendously.  Go to the student loan forum to look up specifics in rehabbing your student loans.

Message 8 of 8
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