Mortgage Loans

[lee307]

My wife and I sold our house and want to build a new one.  We used our profit from the sale to pay down CC debt. I just pulled our scores.

mine

TU 689

EQ 688

EX 700

wife

TU 689

EQ 680

EX 689

Our payoffs have not been reported yet - Once it shows up my wife's CC Util will go from 97% to 58%.  The 58% is from my debt where she is an AU.  If I removed her as a AU she would drop to 0%.

My CC Util changes from 88% to 35%

We really want to start building due to our current living arrangements but should we wait for some updates or will our scores really change enough?

Thanks

[Timothy]

Move VERY slowly a carefully into this process.

With great scores and $ in your pocket you can make a sweet deal for yourselves.

[montana]

if you get in to 720, the rates will drop on you. better service and overall better loan products selection. But if homes in your area are withing FHA limit of $417,000, then all you need is 2 year taxes. No need for FICO, though they will chack the credit ( the loan broker ) but more as a formality. You are already approved with taxes up to that limit.

[lee307]

I have been told the FHA limit here is $200,160 for single family, we are around 50k more and

I was told you could not use a FHA for a construction loan.

Is 720 a possibility, other than the high UTIL there are no other negatives?

[montana]

I would start with local loan brokers and real estate agents and then get some picture of it all. Unfortunately there is so much to factor to the score. each file is different. Utilization should be below 10% on all accounts individually. Then start looking at mortgage to get good deals. But i think you are ok to look for mortgage as it is right now.

Good luck

[George2037]

I would do a little more research on the FHA home construction.  I know there is a program where FHA will allow a buyer to purchase a home and renovate it with the stipulation they have a "Projected" apraisal done to show what the home will be valued at once the work is complete.  I'm sure they have a program for new homes.  Also check with your local government, here in Maryland they have what are called "Hot Spots" or "Growth Areas" and offer low intrest loans for specific zip codes.

[OneMortgageGuy]

417K is Fanniemae max loan amount before a jumbo loan. Most states cant even go above 203K for FHA but is different from state to state.

As for tax returns... You should always give your W2's before your tax returns. Using your tax returns will lower income. The underwriters deduct whatever you deduct from your income.

montana wrote:

if you get in to 720, the rates will drop on you. better service and overall better loan products selection. But if homes in your area are withing FHA limit of $417,000, then all you need is 2 year taxes. No need for FICO, though they will chack the credit ( the loan broker ) but more as a formality. You are already approved with taxes up to that limit.

Message Edited by OneMortgageGuy on 08-30-2007 04:09 PM

[OneMortgageGuy]

https://entp.hud.gov/idapp/html/hicost1.cfm

You can use the web page to see the FHA limits.  The max loan amount goes up per family member and caps out at 4.

[ronq]

Also dropping your UTL will get you a big jump on scores. I assume you have a decent length of credit history so dropping your UTL will give you a bigger jump since you already have a good mix of different types of credit. Remember UTL is 30% of your score.

[lee307]

My history: 18yrs oldest, average is 9yrs

wife- 10yrs oldest, average 6 yrs

Any advice on how long before the CC's update?