04-08-2009 03:53 AM
I was just approved by my lender to do a short-refi into a fha loan on my primary residence. The loan is due to close by 4/14.
I was feeling pretty good about the whole thing until I was sent a rider to sign today that stated that the paid off loan would be tagged "settled for less than the amount owed". The tag wouldn't be that big of a deal except for the fact that I'm having a new house built that should be finished in August.
My current scores are 650 and 670. Not sure of TU.
My concern is that the paid off loan with that tag will ding my credit enough that I will not be able to qualify for my new loan. I've asked the lender to change the rider to read "paid as agreed" or "loan paid in full" but they will not do it. I've also read that I may not be able to do a FNM or FHA laon for 2-3 years after a short-refi.
I've been preapproved for my new VA loan already and income and assets aren't an issue.
Does anyone have an idea of the hit I'll take on my credit scores?
Has anyone done a short-refi with a purchase soon after?
Thanks for your help!
04-09-2009 01:19 PM
I just got a 12 month loan from my CU to build some relationship with them (for future) and my Score dropped 15 points (from 663 - 648)
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO