Cleaning for Mortgage

[Anonymous]

I have been cleaning up my score since December and have been able to get 20 point increases for TU and EX scores and a 51 pt increase with EQ.  My scores are now 629 EQ; 646 TU; and 635 EX. However my FICO 2 scores for a mortgage are 607 with EQ and only 601 with the other two.

In the past two weeks I have settled a defaulted debt with Capital One from July 2008.  The debt started at 9K and grew to 16K before I settled with the attorneys representing Capital One.  I have also paid off in full a student loan for $4800  that I cosigned for my son that was defaulted. I know these have not yet updated on my CR.  I now have no defaults, no collections and no  major negatives baddies.

My question is since the only other debt I have is with student loans (no lates in the last 18 mo) and I have two credit cards with only about 3% utilization, should I expect to see  a jump with paying off this defaulted debt.  I have no collections, judgements etc.

Trying to figure out anything else to do to at least hit the 620 mark for an FHA mortgage.

Thanks in Advance

[Anonymous]

I have read a third CC helps and/or installment loan. 

[Anonymous]

Thanks I do have 7 student loans reporting as trade lines under installment loans.

[Anonymous]

A third revolving account may help.

[Anonymous]

You only need a 580 for a fha loan.

[Anonymous]

You might see a score drop when those accounts update but your on the right track . You should wait until July 2015 ( that's when your cap 1 drops off ) before starting the mortgage process . When do you plan on going for the mortgage ? You can probably get away with only two credit cards but a third one could help if you can wait a little on the mortgage loan .

[Anonymous]

Thanks, but I havent found a lender who isnt looking for 620 minimum.

[Anonymous]

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@Anonymous wrote:
You only need a 580 for a fha loan.

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That is the minimum established by FHA, but in many areas of the country the lenders have an 'overlay' of additional requirements.