Mortgage Fico versus Fico 08

[Anonymous]

I've been working in overdrive trying to get my scores higher as I have a contract on a home. My LO is trying to get me approved for a USDA guaranteed loan and says I need a score above 640. I know he is referring to the mortgage fico scoring, all my fico 08 scores are now above the 640 mark. When I pulled my credit report last month with my fico (all my scores were still under 640 at that point, including fico 08), I had a difference in my mortgage fico score to my fico 08 scores of 81 and 65 from Experian and Equifax. I've read that most people have about a 30 point difference. Does anyone know what type of credit repairs are most influential in bringing that range closer together? After everything has been updated on my credit report (we're doing a rapid rescore), I should have one medical collection still open, 2 utility collections Paid in Full, and no lates in the past 12 months. My credit utilization will have gone from roughly 58% down to 1%. Any idea if some of these changes will influence my mortgage fico score more so than my fico 08 score to bring that gap a little closer together? Thanks for any input! 

[-NewGuy-]

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@Anonymous wrote:

I've been working in overdrive trying to get my scores higher as I have a contract on a home. My LO is trying to get me approved for a USDA guaranteed loan and says I need a score above 640. I know he is referring to the mortgage fico scoring, all my fico 08 scores are now above the 640 mark. When I pulled my credit report last month with my fico (all my scores were still under 640 at that point, including fico 08), I had a difference in my mortgage fico score to my fico 08 scores of 81 and 65 from Experian and Equifax. I've read that most people have about a 30 point difference. Does anyone know what type of credit repairs are most influential in bringing that range closer together? After everything has been updated on my credit report (we're doing a rapid rescore), I should have one medical collection still open, 2 utility collections Paid in Full, and no lates in the past 12 months. My credit utilization will have gone from roughly 58% down to 1%. Any idea if some of these changes will influence my mortgage fico score more so than my fico 08 score to bring that gap a little closer together? Thanks for any input! 

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Welcome to the forums. Dropping your UTIL from 58% to 1% will certainly show some benefit. However, the collections (paid or not) are going to drag your score down a good amount. If you have time to work on your score, head over to the Rebuilding your Credit forum and read about PFDs and GW letters in an attempt to get those off your report.

Also, the mortgage industry by and large uses Fico 04, which is now available here when you get new reports and scores.

[Anonymous]

Yes, I know that those are dragging down my score, I've gone round for round and they refused to do PFDs, of course this was after I paid them off. I was able to get a couple of medical collections deleted off, I was just stating what was remaining on my report at this time. I'm also aware that mortgage industies use FICO 04 scoring and that was my main question. If anyone knows what factors drive the FICO 04 scores farther from the FICO 08 scores since I've seen on the forums that most people say there is about a 20-30 point differentiation between those two scores and mine is 65 and 81, which is huge. I'd just like to know if anyone has any knowledge of what reporting would bring these scores farther apart or closer together.

[-NewGuy-]

Have any collections under $100?

[Anonymous]

One, it's now showing paid in full. That's one they wouldn't delete.

[Anonymous]

you should ask your LO to do a score simulator, he should be able to tell what will help 

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@Anonymous wrote:

Yes, I know that those are dragging down my score, I've gone round for round and they refused to do PFDs, of course this was after I paid them off. I was able to get a couple of medical collections deleted off, I was just stating what was remaining on my report at this time. I'm also aware that mortgage industies use FICO 04 scoring and that was my main question. If anyone knows what factors drive the FICO 04 scores farther from the FICO 08 scores since I've seen on the forums that most people say there is about a 20-30 point differentiation between those two scores and mine is 65 and 81, which is huge. I'd just like to know if anyone has any knowledge of what reporting would bring these scores farther apart or closer together.

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[-NewGuy-]

Collections (paid or unpaid) under $100 will show on an 04 pull, but not an 08. Other differences for 08 are UTIL being more impactful, isolated late payments mattering less (with many lates mattering more), and AU's being discounted (for the most part).

[MarineVietVet]

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@-NewGuy- wrote:

Collections (paid or unpaid) under $100 will show on an 04 pull, but not an 08. Other differences for 08 are UTIL being more impactful, isolated late payments mattering less (with many lates mattering more), and AU's being discounted (for the most part).

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Plus it seems that 08 is much more sensitive to lack of open installment loans.

[Anonymous]

I have installment loans, a car and student loans, not sure if that's installment of not, no AU's, the only difference I see is that one collection under $100. Don't think that would be the source of such a huge difference, but I know logic doesn't always come to mind when talking about FICO scoring 

[gdale6]

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@Anonymous wrote:

I have installment loans, a car and student loans, not sure if that's installment of not, no AU's, the only difference I see is that one collection under $100. Don't think that would be the source of such a huge difference, but I know logic doesn't always come to mind when talking about FICO scoring 

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Car and SLs count as installment loans.