topic Re: several questions ... in Mortgage Loans

several questions ...mortgage pros feel free to chime in..

Anonymous — Sun, 22 Jun 2008 17:41:29 GMT

I'm told that FHA will take your mid FICO score to qualify you. Mine is 592 (tu). My question is this, if I apply, will my mid FICO CR be the only CR that is looked at, or will all three CRA be pulled and looked at?

Also, when a person applies FHA, is the applic. submitted for automatic approval or go straight to manual underwriting? I have a CO that shows up on tu (10k) and horrible payment history on a loan that is only reporting to EQX. I'm wondering if all lenders will want me to pay off the CO or begin making payments and/or have atleast 12 mths of good payment history with the loan on EQX.

My wife is a stay at home mom (no income) so I'll be applying only. Since I'm married, will FHA require my wife's CRs to be pulled also although she receives no income? Her scores are a bit lower (mid is 576). I was told that I should be the only one to apply b/c of her receiving no income.

I want a home for my family sooo bad....

Also, I'm not thinking about applying until Aug./Sept. because I'm paying some other things down to help my DTI. Any comments/advice is appreciated....

EQX- 576

TU- 592

XP- 606

Message Edited by propertyvirgin on 06-22-2008 10:41 AM

Re: several questions ...

Anonymous — Sun, 22 Jun 2008 04:35:20 GMT

Yes, they pull all 3 scores and use the Lowest Middle score of all applicants. You can apply without your wife (but I think I remember something about being able to include her as a homemaker, but I don't know if her credit scores would need be included).

It is my understanding that all loan requests start out as an Automatic Underwrite and IF the system is concerned it is then referred to a manual underwrite.

The standard advice for CO's is do not pay them...talk to a reputable LO and get advise.

As far as FHA is concerned you will need 12 months of clean history to be approved with a Manual Underwrite...

Re: several questions ...

Anonymous — Sun, 22 Jun 2008 17:22:52 GMT

Ok. So, after they pull all 3 CRs to get the mid score for pre-approval, will they only look at the mid score report, or will they look at all 3 reports? Just wondering since a couple of things show up on certain reports. Finding this out will make a difference in if I can apply soon or wait another year. Thanks for any advice/comments.

Re: several questions ...mortgage pros feel free to chime in..

Anonymous — Sun, 22 Jun 2008 18:19:18 GMT

They use the middle score for rate purposes. They look at all 3 reports to get the whole picture of your outstanding debts, payment history etc.

Re: several questions ...mortgage pros feel free to chime in..

DallasLoanGuy — Sun, 22 Jun 2008 19:41:30 GMT

all three scores/reports are for qualifying. the mid score is used to price the loan.(rate)

typically, all loan officers will run the file for automated first. if that doesnt work, then they closely inpect the file for a possible manual underwrite.

some lenders will ask you to pay chargeoff/collections. some will not.

fha DOES NOT REQUIRE they be paid unless they are judgment or tax lien..... or other federal debt.

spouse credit will be pulled in community property states. but will not really be used for qualifying.

Re: several questions ...mortgage pros feel free to chime in..

shalane85 — Sun, 22 Jun 2008 19:57:01 GMT

What is harder to qualify for? A manual underwrite or an automated underwrite?

Re: several questions ...mortgage pros feel free to chime in..

DallasLoanGuy — Sun, 22 Jun 2008 23:59:15 GMT

shalane85 wrote:
What is harder to qualify for? A manual underwrite or an automated underwrite?

depends

high dti = automated easier

short credit history = manual easier

every file is different

Re: several questions ...mortgage pros feel free to chime in..

Anonymous — Mon, 23 Jun 2008 03:23:16 GMT

dallas, my dti is below 30%, and everything else is ok i think, but i had lates in march and april, so i probably wouldn't get approval thru automated anyway. right? b/c of the lates and all....

Re: several questions ...mortgage pros feel free to chime in..

DallasLoanGuy — Mon, 23 Jun 2008 03:29:16 GMT

propertyvirgin wrote:
dallas, my dti is below 30%, and everything else is ok i think, but i had lates in march and april, so i probably wouldn't get approval thru automated anyway. right? b/c of the lates and all....

they are looking for a willingness and capacity to pay....

it could still happen.

i had one approved recently that was 'currently past due' (not a 30 day late.... but currently unpaid)

apply, it is free