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New Member
cerevisaphile
Posts: 2
Registered: ‎11-15-2013
0

Running out of time to buy my grandparent's home. Any advice?

I'd appreciate some help from ANYONE who can help. To give a quick background, my grandparents recently passed away last year and I'm trying to buy their home as it was my place of residence for the last 3 years. I lost my job when they got sick but have stellar credit (776 according to TransUnion/CreditKarma). My cousin has agreed to move in and go on a mortgage with me. He has stable work history, but his credit is stuck at 597 (Experian). Mortgage lenders I spoke to said that they only look at the credit of the applicant/coapplicant whose credit is lowest, and my high credit has no factor in their consideration and can only hurt the mortgage application since I do not work and have $12,000 in student loans that are OK in standing. I am also receiving a gift of equity of 1/3 the value of the home ($250K sale value), which would act as a 33% downpayment. Still, no lenders are approving us due to my cousin's credit. When I first saw his score last month, I told him to pay off Nordstrom in full. His credit has yet to go up.

 

Credit Inquiries: 4 in the last 2 years

 

Nordstrom Charge Acct: 

Account Status: Closed

Payment Status: Paid In Full

Limit: $0.00

 

2011           2012                                                                      2013

10  11  12  01  02  03  04  05  06  07  08  09  10  11  12  01  02  03  04  05  06  07  08  09

OK OK OK OK OK OK 30 60 90 120  KD KD KD KD KD KD KD KD KD KD KD KD KD KD 

 

Cap One Credit Card

Account Status: Open

Payment Status: Paid

Limit: $300

 

2011           2012                                                                      2013

10  11  12  01  02  03  04  05  06  07  08  09  10  11  12  01  02  03  04  05  06  07  08  09

OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK 30  60 OK OK  30  60  90 OK OK

 

Macy's Charge Acct

Account Status: Closed

Payment Status: Legally paid in full for less than the balance

Limit: $200

 

       2012                                                                      2013

12  01  02  03  04  05  06  07  08  09  10  11  12  01  02  03  04  05  06  07  08  09

OK OK OK OK OK OK 30  60 90 120 KD ND ND ND ND ND ND ND ND ND KD KD

 

 

Does anyone know if we can boost his score by challenging the "key derogatory" marks, or by paying off Macy's in full? Should he ask for an increase in credit even though we are trying to get a mortgage? Are there any lenders out there willing to average both our scores together and work with someone willing to put down 33% on a gift of equity? Any advice is welcome! I am desperate at this point!

Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: Running out of time to buy my grandparent's home. Any advice?

Hi and welcome to the forums.

 

First, to let you know, the scores from TU/CK are not real FICO scores, they are FAKOs.  What your lender would pull would not be the same.  They use the FICO 04 model for mortgages.  Same with your cousins EX score.  It is not a FICO.

 

Your real FICOs could be much less or greater than those you show.

 

Were the Nordstroms or Macy's cards charged off or sent to collections? 

 

The KDs have no scoring impact on their own.  It is used by the CRA to annotate the condition of the underlying account, which is scored.  A KD means Key Derogatory which means, collections, charge off, 90+ days past due etc.

 

If Macy's was not CO'd and they retain ownership of the account, it is possible to see if they would allow the full payment to show paid in full.  However, it will not change the score due to the amount of late payments.

Established Contributor
jadeite788
Posts: 510
Registered: ‎09-25-2009
0

Re: Running out of time to buy my grandparent's home. Any advice?

Um I agree with guiness you need to get your real FICO scores from this site.  I would try a good will letter to see if they are willing to let go some of the lates on the Macy account.  Try the 60 and 90 day lates.


Starting Score: 565
Current Experian Score: 634 (Lender pull)
Current Equifax Score: previous 668, 680 as of 11/12/13 lender pull
Current Transunion Score: previous 675,677 as of 09/23/13
Goal Score: 750

Take the FICO Fitness Challenge



Established Contributor
jadeite788
Posts: 510
Registered: ‎09-25-2009
0

Re: Running out of time to buy my grandparent's home. Any advice?

We need to know if this is a collection or charge off.


Starting Score: 565
Current Experian Score: 634 (Lender pull)
Current Equifax Score: previous 668, 680 as of 11/12/13 lender pull
Current Transunion Score: previous 675,677 as of 09/23/13
Goal Score: 750

Take the FICO Fitness Challenge



Established Contributor
jadeite788
Posts: 510
Registered: ‎09-25-2009
0

Re: Running out of time to buy my grandparent's home. Any advice?

[ Edited ]

This is only if your cousins score is still low after revealing your FICO scores:

 

Cap One is still open, see about a GW on that  for the 60 or 90 late.  If they can take off just one, that should boost the score to 600's.  Try to get another credit card for your cousin and keep a 0 balance on that.  Best is to try a credit union to get the card either unsecure or secure.  that should boost your cousin anywhere from 10-20 points.  See about credit karma too.  They have credit cards that fit a person's credit score and if approved keep a 0 balance on that one as well.  That should give you the score you need. After that no more open accounts.  It might take a month to reflect.


Starting Score: 565
Current Experian Score: 634 (Lender pull)
Current Equifax Score: previous 668, 680 as of 11/12/13 lender pull
Current Transunion Score: previous 675,677 as of 09/23/13
Goal Score: 750

Take the FICO Fitness Challenge



New Member
cerevisaphile
Posts: 2
Registered: ‎11-15-2013
0

Re: Running out of time to buy my grandparent's home. Any advice?

Thank you for the replies! I will run a FICO score with my cousin tomorrow morning. Macy's was never charged off, but settled on. As for Nordstroms, they initially marked it as charged-off but removed that from his report once he paid the full balance directly to the OC. There was a CA involved, but they did not own the debt and have never showed up on my cousin's credit report.

 

I will work with him on writing a goodwill letter for all 3 of his cards. Maybe we can incentivise Macy's to follow through by offering to pay the remaining amount of the full balance. 

 

Should we ask for a credit increase on his Capital One? With regard to opening a new line of credit, I always thought it drops your score at first (avg age of accounts). Is there any way I could add him on a credit card of mine to boost his score?

Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: Running out of time to buy my grandparent's home. Any advice?

Unless he carries high balances a CLI isn't going to really help.  Those are not scored by FICO.  And no, a CLI doesn't drop your score.

 

Being added as an AU would.  If your card has no balance or a very low one, never late, and older than his oldest one, it will help.

 

 


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