So I'm tired, frustrated and depressed. I keep searching for the light at the end of the tunnel here. October 2012 we tried to get pre-approved for a home loan to start construction (because the builder only wanted $500 down- USDA loan). They told us to wait until my husband's credit lines turned a year old and come back. So in March 2013, we were pre-approved. Well fast forward to today, right around the government shut down, they said my husband's score didn't quite get to a 640, so they were transferring me to an FHA loan by myself. I needed to put $6,000 down at closing and get 4 "consumer disputes" comments removed from my report. My scores were absolutely fine, middle one being around 675 (which my lender uses youre middle score), high of 704, low being like 660. Everything was above 640, which is their requirement. I got the money down, so I went to work contacting the credit bureaus directly to remove the dispute comments. Even though they said "within 30 days", it was done within a couple. All except for one LVNV account that was in "investigation" with Equifax. I had been using a credit repair company at the advice of my lender (from back in Oct 2012). So I had to wait for that to finish before the comment could be removed. That happened, then I got my comment dropped, confirmed it the same day, then called the lender to say we were good to go. Pull my report.
Much to my surprise was the email that said my scores had dropped dramatically and I was no longer qualified for the house I've visited since March of this year. Transunion stayed at 704, Equifax went to a 604 and Experian dropped to a 587. Everyone was in complete shock. Originally I was supposed to be closing October 24th, but the house was still in progress, so they're giving me a minute to figure it all out.
I've heard a million different answers. I've heard when an account is in dispute, it stops counting. I've heard this is bs. I've heard, from Equifax, that the scores will bounce back up. I've read they won't. Another mortgage company told me to "piggyback" and it might help. So I was added as an authorized user to a card with a $5000 balance, opened in 2005 with impeccable payment history. I have credit history of my own, so they said this might work for me. When I pulled my Equifax report yesterday, it had the new card on there, and an increase of 10 points. It also had dispute comments back on there from LVNV (i hate that company).
I have two credit cards of my own. Both with a $3 balance (bc I've heard a 0 balance is not good, and I've heard that was BS too). Now the new card had a $900 balance on it (with impeccable payment history). She has since gone in and paid it to $0, in hopes it will help. The negative stuff is old. LVNV should fall off anyday now, but I'm sure they'll just sell it again before that happens.
So I'm looking for clarification. Will my score go back up? I've read after the dispute period (which no one has said how long that lasts) that it'll bounce back up. My lender is compeletly shocked. She said she expected a 2-5 point drop for each account. Not the dramatic drop we experienced. Only Equifax has acknowledged the piggyback card. Her card is due on the 5th, in which it'll report the 0 balance, so maybe that'll help. I dont know if removing the "new" dispute comments today that LVNV put on there is going to do more damage again or not. Everyone who posts here seems to report the issue, but never updates on what ended up happening. I'm certainly not going to make my Thursday closing, but if they think we're trying something, they're holding off. I am in love with this house. I've seen every board that has gone into it, and I cannot imagine not getting it. Transunion (last they looked) was fine. Equifax needed 36 points (which myfico says went up 10). I only need one of the lower scores to meet a 640. Just one. Is there hope of this happening in the next few weeks? Anyone have any real experience with scores "bouncing back up"?
