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Mortgage lending that uses HIGHEST mortgage score?

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Anonymous
Not applicable

Mortgage lending that uses HIGHEST mortgage score?

Is there such a thing as a mortgage company that uses the highest mortgage FICO? We've done the recommended credit repair AND a rapid rescore on the one item that was taking the longest to report (Experian refused to update because doing math is apparently hard and even though a $92 balance account showing a $92 payment on a receipt wasn't enough because the receipt didn't say SPECIFICALLY "balance = 0" somewhere on it... not even kidding)... we are still 7 points short on the mortgage FICO score for a mid. 

 

Here's what I have post rapid rescore: 

Old

New

 XPN

558

558

TXU 

602

626

EFX

563

573

 

The good news is our FICO 8 scores have come up significantly, one almost 100 points putting us in the low 700's. But that's not good enough, obviously, for mortgage lending due to the new regulations. 

 

Any suggestions? We've done all the rebuliding we can (balances paid down massively, utilization is at 12% or something rediculously low, a 10+ year credit history, collections PFD'ed) short of just letting time pass... which is the one thing we don't have. My husband has already lived in a different state than I have for a month now and we're ready to be a family again. He got a promotion and a massive raise that spurred the move. I don't want to rent, since it will cost us twice what we'd pay to buy and get us nowhere, but it's looking like our only choice. If we rent, we're going to rent long term... none of this "rent for six months and then buy" stuff.

This is so frustrating. Smiley Sad Money doesn't buy you things, credit does. Sigh.

 

Thanks.

Message 1 of 9
8 REPLIES 8
Shann0n_marie
Frequent Contributor

Re: Mortgage lending that uses HIGHEST mortgage score?


@Anonymous wrote:

Is there such a thing as a mortgage company that uses the highest mortgage FICO? We've done the recommended credit repair AND a rapid rescore on the one item that was taking the longest to report (Experian refused to update because doing math is apparently hard and even though a $92 balance account showing a $92 payment on a receipt wasn't enough because the receipt didn't say SPECIFICALLY "balance = 0" somewhere on it... not even kidding)... we are still 7 points short on the mortgage FICO score for a mid. 

 

Here's what I have post rapid rescore: 

Old

New

 XPN

558

558

TXU 

602

626

EFX

563

573

 

The good news is our FICO 8 scores have come up significantly, one almost 100 points putting us in the low 700's. But that's not good enough, obviously, for mortgage lending due to the new regulations. 

 

Any suggestions? We've done all the rebuliding we can (balances paid down massively, utilization is at 12% or something rediculously low, a 10+ year credit history, collections PFD'ed) short of just letting time pass... which is the one thing we don't have. My husband has already lived in a different state than I have for a month now and we're ready to be a family again. He got a promotion and a massive raise that spurred the move. I don't want to rent, since it will cost us twice what we'd pay to buy and get us nowhere, but it's looking like our only choice. If we rent, we're going to rent long term... none of this "rent for six months and then buy" stuff.

This is so frustrating. Smiley Sad Money doesn't buy you things, credit does. Sigh.

 

Thanks.


None.  All lenders use lowest MID score between borrowers.  How many credit cards do you have reporting?  How many cards have balances reporting?

2/8/19 - CH 7 BK filed
5/15/19 -Discharged
Scores at Discharge: 550 EQ 471 TU 509 EXP (Last Updated 5/11)
5/16/19 - Rebuild Started - App'ed for Credit One - Approved for $2,000 starting line! (Increased to $2200 the following month)
6/7/19 - 606 EQ 544 TU 566 EXP - New CC reported w/ $75 Balance
12/10/19 - 616 EQ 581 TU 592 EXP

8/28/2021 - 698 EQ 670 TU 674EXP
Message 2 of 9
StartingOver10
Moderator Emerita

Re: Mortgage lending that uses HIGHEST mortgage score?

OP, take the time to prepare your file to buy.  It will save you money, time and frustration.

 

Go to the rebuilding forum and post your info there to get your mortgage scores up - FICO 8 scores are not used, only FICO mortgage scores.

Message 3 of 9
DallasLoanGuy
Super Contributor

Re: Mortgage lending that uses HIGHEST mortgage score?

havent seen anyone doing highest score.

they cannot exist in my world.......  maybe a private money lender. but they usually dont look at scores anyway

 

Retired Lender
Message 4 of 9
Anonymous
Not applicable

Re: Mortgage lending that uses HIGHEST mortgage score?

 

@StartingOver10.... the scores I listed are the mortgage scores, not the FICO8's (which are obvioulsy higher). After the rapid rescoring was all said and done, we were eight points short of the minimum 580 (yes, a midscore of 572). 

 

My main issue is that timing is of the essence. My husband and I have already lived in separate states for almost 2 months now, which has been a *blast* <sarcasm font> having a six year old Smiley Sad We are due for an update in 30 more days, but it's killing us to be a split family right now and we really just want to be moved and back together.

 

Our DTI is only at 22%, our utilization is down at 12% now, and income is 97K. We have relo money that is now 2 months seasoned in our savings for the down payment. We are pretty hopeless... and now are probably forced to rent, which will eat into the money we have saved for the down payment (usually deposits are first and last months' rent, and rent is easily double what a mortgage payment would be, unfortunately), which in turn kind of screws us again in the long run. 

 

This bites Smiley Sad

Message 5 of 9
Anonymous
Not applicable

Re: Mortgage lending that uses HIGHEST mortgage score?

I'm sorry you're in this predicament. I can relate. We are doing a VA loan and my high score is 622 but mid is 593. Luckily we are going with a broker that doesn't use scores in particular but VA does have guidelines that basically say the lender has to prove the lendee is credit worthy enough to take the risk. We have very little debt with higher income as well so DTI is also pretty low.

 

Not that me complaining matters, but simply picking the middle score is so arbitrary. I tracked my scores over a 6 month period and the same behavior reported to all 3 credit bureas, and at some point all 3 were my middle score at some point accross the 6 months. My lowest score when I started ended up being my highest last month (TU). Because they are 3 different companies, all with different information, all using different scoring models - there is no rhyme or reason just to pick the middle. Averaging them all together would make more sense lol.

Message 6 of 9
Anonymous
Not applicable

Re: Mortgage lending that uses HIGHEST mortgage score?

UPDATE: We did it!!!

 

With a few rescores, paying down pretty much ALL our cards, we managed to get our mid score up enough to qualify for FHA and get our preapproval! But boy was it a PITA! O_o 

Related note, I totally and HIGHLY recommend Swan Financial, who has been busting hump for us to get us approved. I've never worked with a lender that actually CARES to get you to approval when you don't qualify initially. They were the only ones who said "no, but we can get you there!" and actually followed through. I can't say enough good things about them!

Message 7 of 9
Anonymous
Not applicable

Re: Mortgage lending that uses HIGHEST mortgage score?

Yay! We also are working with a great LO (after working with one that did pre approve us but didn't seem to care too much about us). Fingers crossed we both close!
Message 8 of 9
huck1081
Regular Contributor

Re: Mortgage lending that uses HIGHEST mortgage score?

Congratulations!!


Starting: EQ 501 TU 514 EX 533 (12/2014)
Current: EQ 613 TU 625 EX 615 (4/1/2016) Goal: 640 and a new home loan
Message 9 of 9
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