topic Re: Mortgage Scores Help in Understanding FICO® Scoring

Mortgage Scores Help

Anonymous — Tue, 19 Oct 2021 14:09:56 GMT

Hey All,

I am trying to qualify for an FHA Primary Purchase loan, and my credit scores are holding me back. I am shocked at the difference between my FICO 8 with Experian, and FICO 2 with Experian. 640 FICO 8, and 541 FICO 2. 100 point difference. Why?

FICO 5,4,2 are 596, 557,541. I am very close, and just need a middle score of 580, and I will qualify for FHA 3.5% Down.

Derogitory credit is the biggest factor, but in the last 2 years, ive never been late on any of my debts. Credit Usage is 14%.

Any help please?!

Thank you,

Re: Mortgage Scores Help

SouthJamaica — Wed, 20 Oct 2021 13:45:46 GMT

@Anonymous wrote:
Hey All,

I am trying to qualify for an FHA Primary Purchase loan, and my credit scores are holding me back. I am shocked at the difference between my FICO 8 with Experian, and FICO 2 with Experian. 640 FICO 8, and 541 FICO 2. 100 point difference. Why?

FICO 5,4,2 are 596, 557,541. I am very close, and just need a middle score of 580, and I will qualify for FHA 3.5% Down.

Derogitory credit is the biggest factor, but in the last 2 years, ive never been late on any of my debts. Credit Usage is 14%.

Any help please?!

Thank you,

Based on my experience, I believe that the primary differences between the mortage scores and the FICO 8 scores are as follows:

1. The "age" factors, such as inquiries, new accounts, average age of accounts... are weighed more heavily in the mortgage scores.

2. The mortgage scores are more concerned with number of zero account balances; the more the better, except that one bank card should report a balance each month.

3. The mortgage scores penalize more heavily for very high utilization individual accounts.

4. The FICO 8 scores penalize more heavily for high aggregate utilization.

5. Very low installment utilization (9% or lower aggregate) is rewarded in FICO 8, usually ignored in mortgage scores.

Re: Mortgage Scores Help

FireMedic1 — Wed, 20 Oct 2021 16:58:34 GMT

Need to know more about this:

"Derogitory credit is the biggest factor"

List out the baddies. Lates, charge offs, ect.