Denied from FGMC due to credit :( Help!

[mzchell06]

I saw a few people here apply for FGMC and had success. I applied and was told my file was going into full approval by underwriting. A day later I was denied with only a reason of due to credit. I emailed the LO to ask him what part of my credit to know what was wrong. My mid score was 646. I do have a few lates. Most recent is a 90 day due to student loans back in Aug 12. I have a unpaid repo from 2009. Collection from credit union 2008 and another collection in 2008. I have a capital one secured card for 200 a month and first premier 300 a month. Car loan of 563. Student loan 276 a month and i make 68k a year. I'm not sure if I'm really lacking credit since my CC limits are now. Just lost and not sure what to do or what's wrong since my score is over 640 and they were a sub prime lender.

[lesse]

Im pretty sure i read you cant have any lates in the past 12 months.. so maybe the late and also how long did you have your credit cards? they like to see 2-3 lines for at least a year. Also depending on the collection amounts that could be part of the issue, but they usually will tell you exactly what the problem is, hopefully the LO can provide more insight.

[fishbjc]

That 90 day is killing you, along with that UNPAID repo.  Get the repo paid, settle the collections....when 12 clean months rolls around, you will probably be approved.  Score isn't everything.   Visit the mortgage forum for loads of advice and good luck!

[mzchell06]

Thanks yeah I had the first premier card for 1 year and the capital one for 5 months. I owe 673 to one collection 60 dollars to the credit union and 10k on the repo. At first the LO was responding to everything and now this I haven't heard anything back from him except your denied due to credit

[guiness56]

I would find a new LO that is willing to work with you and tell you things.

[mzchell06]

Thanks yeah I applied to another one before this one and my score was a 637 so she suggested on a few things to bring my score up. Thought since this was a sub prime and my scores were higher on their pull that I would have had more luck. Guess I was wrong so I may just do some cleaning and saving and work with the first one. I appreciate all of your suggestions!

[fishbjc]

Get one year of no lates behind you.  Start writing those goodwill letters to see if any lates can be removed.  Pay all current cards, on time, and don't let them report as high utilization...keep around 9%.

[mzchell06]

Ok thanks fishbjc. I'll try again in August and keep all of you posted.

[mzchell06]

I tried writing for the student loan one and they wouldn't even budge and that one is hurting me the most. Definitely learned my lesson.