Mortgage scores

Jjhart36 — Sat, 13 Aug 2022 17:11:30 GMT

So we (my wife and I) made a bunch of credit moves in preparation to buy a house in 6 months preferably the USDA route due to lack of reserves without being gifted assistance for down payment and closing costs and area we would like to buy in would be an available option. Our income 122k or 10166/month. My income being 77k and hers 45k. The moves we made was paid off 3 installment loans and she financed a 68k Yukon in her name and I refinanced my truck of 16k to go from a payment of 830 to 491. So payments we owe together is 1657/month that includes her 1166 payment that is in her name alone. Problem is I have been offered to buy a house that costs 317k but has been offered to list by realitors at 350-460k by 3 different realitors. He doesn't want to go with a realitor to pass the savings to me. The house is 1800sq ft brick built, new roof, septic, well, water heater, ac unit, windows, flooring, paint all done in the last 10 years, a shop, and barn, 20 acres and pond but he says it has to be conventional which I don't understand because it has USDA written all over it. But either way I checked my mortgage scores and they are EQ 607, TU 567, and EX 584. So I would need 36 points. All the moves we made with accounts has already been reported except 1316 Honda financial loan I paid off that I opened in November and Harley Davidson charge off that I settled to 0 balance that reflects 4323 balance on reports. I have 7 charge offs that were around the 2017-2019 period that have all been closed and paid showing 0 balance, and 1 collection also paid but can't remove since NCA won't PFD. But no missed payments or negative accounts since January 2020. Here are my credit cards that I owe

Balance/limit

FTCU. 1400/1500

Credit One. 184/300. (AU)

Credit One 0/450

Discover. 852/1000. (AU)

Capital one. 3148/3250. (AU)

Capital one. 0/400

Amex. 1616/???

so my question, with Harley going to 0 balance, Honda financial to 0 but closed account, and taking the credit cards to AZEO is it possible to get 36 points for mortgage scores. I know removing the AU would help but she would be on the loan too so might as well pay them off as well and stay as AU

@ShanetheMortgageMan

Re: Mortgage scores

ShanetheMortgageMan — Sat, 20 Aug 2022 06:15:14 GMT

34 points doesn't seem impossible but it is anyone's guess how many points paying those accounts off + the AZEO would get you. I've noticed high revolving utilization weighs heavily on mortgage scores when there delinquencies on the report, so IMO you'll see the biggest improvement by handling the credit cards. There is also the simulator here at myFICO.com, although I haven't used it personally: https://secure.myfico.com/member/#/simulators

As far as the home is concerned, perhaps the seller knows it might not meet HUD minimum property requirements so they are shying away from selling it since they know repairs could have to be dealt with? And then just doesn't want to come out and tell you that straight up in case it'd scare you off. You should ask the seller and either way I'd make sure you get a detailed home inspection from a reputable source.

Keep in mind USDA has some guidelines when it comes to outbuildings, which are:

The property must not include buildings principally used for income producing purposes.
Farm service buildings such as barns, silos, commercial greenhouses, or livestock facilities used primarily for the production of agricultural, farming or commercial enterprises are ineligible. However, barns, silos, livestock facilities or greenhouses no longer in use for a commercial operation, which will be used for storage, do not render the property ineligible.
Outbuildings such as storage sheds and non-commercial workshops are permitted if they are not used primarily for an income producing agricultural, farming or commercial enterprise.
A minimal income-producing activity, such as maintaining a garden that generates a small amount of additional income does not violate this requirement. Home-based operations such as childcare, product sales, or craft production that do not require specific commercial real estate features are not restricted.

topic Mortgage scores in Mortgage Loans

Mortgage scores

Re: Mortgage scores