Need to increase 50 points for mortgage

[Anonymous]

Hi Guys

         I'm going to buy a home from builder in May 2016. They are going to start in Mid of Jan 2016. Right now I got Mortgage preapproval for FHA.

Here is my mortgage score during my pre-approval (dec 15 201%)

Exp : 656 (No collection accounts, 2 credit card late payment 11 months ago)

Equifax : 614( 2 collection accounts, 2 credit card late payment 11 months ago)

Transunion- 627 (1 collection accounts, 2 credit card late payment 11 months ago)

Average credit hitory : 4 years ( oldest account 9 years)

Credit card utlization -  8500/20350 ( 41%)

Installement loans : 4 (2 auto and 2 personal loans)

I want to go for conventional loan with 7% down payment, for that i need to increase mid score to 680 in order to get better PMI.

What I can do in order to hit mid score (from 627 to 680) mark in 3-4 months time before closing.

Please suggest

[Anonymous]

On the collections, how old are they and for how much? And how what are your card limits and utilization per card?

[Anonymous]

thanks for your reply. Collections were 1 year old .

Cards
Capital one: 0/600
Capital one: 0/600
Capital one: 340/1500
Chase : 190/1000
Credit union : 5800/8000
Jcp : 108/1000
Target : 0/600
Credit one : 14/450
Boa: 682/2500( AU)
Boa : 80/1000(AU)
Cap : 700/1600 (AU)

[Anonymous]

You have 11 cards with 8 carrying a balance. If you can get more than 50% of them to 0 you'll get a boost, can't say how much. Ideally you should have 1 card reporting a balance of less than 10%. Might not be possible in your case. The Credit union card is at 70%. Get that one down as much as possible. And if it is feasible try to do PFD on the collections because they are so new you're getting hit harder than if they were older.

[Anonymous]

And try GW letters for the lates

[ojefferyo]

Bring the utilization down, it should help. 

[RMN]

Do you want a suggestion that is better for you in the long run.  Flip your thinking! Your scores are high enough for FHA.  Take the loan. Conventional can be tricky at such a marginal combined FICO. If you feel financially stable, which you should be buying a home, pay down the principal (not mortgage) to get a ZERO PMI.  You are already at 7%, 13% to go.  And the secret to put even less than 20% down will reveal itself after you buy the house.

[Anonymous]

Hi guys
Thanks for the reply. I'm choosing conventional loan in order to avoid upfront mortgage of 1.85% . I'm working on PFD 2 with collection. Hope it will work.Tried GW for late.it didn't work.
Will pay off small balance and keep $0 balance got atleast 6 cards. Credit union going to reduce from $5800 to $3500 out of $8000 . Will these plan make me to reach me mid 680?

[Anonymous]

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@Anonymous wrote:
Hi guys
Thanks for the reply. I'm choosing conventional loan in order to avoid upfront mortgage of 1.85% . I'm working on PFD 2 with collection. Hope it will work.Tried GW for late.it didn't work.
Will pay off small balance and keep $0 balance got atleast 6 cards. Credit union going to reduce from $5800 to $3500 out of $8000 . Will these plan make me to reach me mid 680?

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You'll get a bigger score boost paying that card down to below $2400 (<30%) Pay off all of the small balance cards.