Help me "find" 34 points in 6 months

[thankfulheart]

I have a goal to qualify for a USDA Guaranteed mortgage in 6 months. I need a 620 score according to the LO and I'm at 586 right now.  There are 9 medical collections, 2 are from 2010 (going to try to PFD these), the rest are 2008 or earlier.  2 are due to fall off within 6 months.  I have a state tax lien from 2007 (going to shoot in the dark and beg for that to come off as an "injured spouse").  Student loan of $85/mo, paid on time.  Car loan of $445/mo, paid on time.  Will have 3 open CCs with good history, all paid on time, all under 10% utilization.  My name is still on a mortgage on my children's father's house to the tune of $235/mo w/ $9K left.  All other debt will be paid off by the 6 month mark. All but a few 30+days late will be 5 years old by then; the most recent will be more than 12 months.

Is there anything more I can do to "find" those 34 points?

[llecs]

I'd send PFDs for all of the collections, especially the older ones too. There's a chance that removing the two newest might not return all the points you are looking for.

For max points on the CCs, get two to report $0 at app time and get the other to report a balance of under 9% of the CL.

ARe the worst lates reporting 30-days? If so, and if the account is still open, send GWs for those lates that are under two years old.

Unrelated to FICO and FICO scoring, could DTI be an issue? You might want to do the math to be sure.

[winstars]

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@thankfulheart wrote:

I have a goal to qualify for a USDA Guaranteed mortgage in 6 months. I need a 620 score according to the LO and I'm at 586 right now.  There are 9 medical collections, 2 are from 2010 (going to try to PFD these), the rest are 2008 or earlier.  2 are due to fall off within 6 months.  I have a state tax lien from 2007 (going to shoot in the dark and beg for that to come off as an "injured spouse").  Student loan of $85/mo, paid on time.  Car loan of $445/mo, paid on time.  Will have 3 open CCs with good history, all paid on time, all under 10% utilization.  My name is still on a mortgage on my children's father's house to the tune of $235/mo w/ $9K left.  All other debt will be paid off by the 6 month mark. All but a few 30+days late will be 5 years old by then; the most recent will be more than 12 months.

Is there anything more I can do to "find" those 34 points?

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Medical collections, maybe to an internet search for HIPAA dispute process...

[bruiseviolet]

just be prepared- and tomorrow i can dig out my paperwork-  but usually USDA requires collection accounts to be paid off 12 months prior to obtaining the mortgage.

[thankfulheart]

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@bruiseviolet wrote:

just be prepared- and tomorrow i can dig out my paperwork-  but usually USDA requires collection accounts to be paid off 12 months prior to obtaining the mortgage.

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See, this confuses me.  I got this from the USDA underwriting guidelines (and my LO said NOTHING about paying off collections):

For borrowers with a credit score of 620 or higher, lenders may evaluate loans utilizing USDA’s streamlined underwriting guidelines.Lender shall not be required to document adverse credit history except for those involving a delinquent federal debt or previous agency loan.Lender shall not be required to obtain a rental history ratingNo action will be necessary for any derogatory items, (i.e. no letters of explanation, unpaid collection accounts not required to be paid off, etc…)"

confused...

[bruiseviolet]

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@thankfulheart wrote:

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@bruiseviolet wrote:

just be prepared- and tomorrow i can dig out my paperwork-  but usually USDA requires collection accounts to be paid off 12 months prior to obtaining the mortgage.

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See, this confuses me.  I got this from the USDA underwriting guidelines (and my LO said NOTHING about paying off collections):

For borrowers with a credit score of 620 or higher, lenders may evaluate loans utilizing USDA’s streamlined underwriting guidelines.Lender shall not be required to document adverse credit history except for those involving a delinquent federal debt or previous agency loan.Lender shall not be required to obtain a rental history ratingNo action will be necessary for any derogatory items, (i.e. no letters of explanation, unpaid collection accounts not required to be paid off, etc…)"

confused...

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You are correct- I was thinking for the Direct loan- not the guaranteed loan program.

We are also trying to get ours up to qulify for the 'streamlined' one-  although my memory rembers it being 640 and not 620  LOL.  I get so confused so easily-  imformation overload let me tell you =)  

Have you gotten anywhere with the medical stuff?  How is it going?

[thankfulheart]

Just this week, I was told I needed a 640 mid score, 660 is considered "streamlined". I've decided it depends on the lender and the flavor of the month.

My medical collections are down to 3, one of which was paid by the ins co. at time of billing, so I'm still waiting for them to wake up on that one.  One I have no idea what it was for and can't get anyone to tell me.  It's $100, so I may suck it up and pay the OC, then pull the HIPAA card.  The 3rd, I can't make heads or tails as it appears to be several lumped together.  Still hoping that HIPAA sorts that one out, too.

My utilization is still high (0% financing, I'm taking advantage), so I'm sure when I get that done, my scores will be above 640 since they are closing in now.

I did find out today, though, that I have to pay off the "marital home" (down to $8K still owing) before I can app, so my plan may put me back to the end of the year rather than June as I'd originally planned.  More time to clear up the CRs!

[RobertEG]

To obtain that large an increase will most likely require that you get most, if not all, of the collections deleted.  Increases will most likely not be significant until all major derogs are removed.

Of course, that also depends upon other scoring categories, which might, if high enough, be sufficient to offset the major derogs.

How is your % util on your revolving credit?  Do you have margin there to gain points?

[bruiseviolet]

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@thankfulheart wrote:

Just this week, I was told I needed a 640 mid score, 660 is considered "streamlined". I've decided it depends on the lender and the flavor of the month.

My medical collections are down to 3, one of which was paid by the ins co. at time of billing, so I'm still waiting for them to wake up on that one.  One I have no idea what it was for and can't get anyone to tell me.  It's $100, so I may suck it up and pay the OC, then pull the HIPAA card.  The 3rd, I can't make heads or tails as it appears to be several lumped together.  Still hoping that HIPAA sorts that one out, too.

My utilization is still high (0% financing, I'm taking advantage), so I'm sure when I get that done, my scores will be above 640 since they are closing in now.

I did find out today, though, that I have to pay off the "marital home" (down to $8K still owing) before I can app, so my plan may put me back to the end of the year rather than June as I'd originally planned.  More time to clear up the CRs!

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Man, 640 mid?  Ouch.  LOL  I've got a LONG ways to go still then.  I re-read the underwriting guidelines for USDA and it said Streamline was 620.  =(  This is another that is maddening to me- there is no clear cut rules for anything-  everything is like shooting arrows in the dark.  Every lender is different.  Some have told us to come back when we have at least 2 scores at 620+ and they can help us with FHA- and others have said don't come back until we are above 640 with all 3 scores....  GAH!

[thankfulheart]

I honestly believe that they are trying to tighten things up a bit, so raising the bar.  I get it.  (I don't like it )

The simulator tells me I should be above 660 if I get my util down in 6 months, so that's the goal as that's when the 0% runs out anyway.  The big hurdle now is to get that other mortgage paid off so I can move forward.  LO tells me DTI is close for USDA, fine for FHA.

Lots to prepare and consider beforehand.  Both the LOs I've spoken with and the builder reps have been VERY impressed with my preparedness, candor, and knowledge.  I blame MyFico.