FHA Score Change Need Help

[Anonymous]

The New FHA underwirting rules could cost me alot of money.

My score is around 545 new underwriting guidelines want a 580 or higher. I have to get the score up quick.

I was approved but now with the new changes I'm not. They tell me this 2 days after I went to contract.

no bankruptcies. a few old debts that they wanted me to pay at closing totaling less than $500. I have no Car payments or credit cards. My income is around 100k.

I only have 30-45 days to get my score up. What can I do? I'd like to keep it ethical but I stand to lose several thousand if I lose this house.

Any help would be greatly appreciated

Message Edited by nyuplink on 03-02-2008 02:49 PM

[Anonymous]

I can't help you but I have heard that some people do not quilify because their scores are too high. I have no idea what would be too high.

[sh9730]

NY,

You should post this over on the Mortgage forum also.  Can you explain more why they say you need a higher score?  FHA is not score driven!  There are some lenders who will not do loans (even FHA) with scores lower than others, but those scores are pretty low (like 530 or less) from what I ve read.  .  FHA allows for manual underwriting, where the underwriter looks at the totality of the circumstances, instead of scores alone. BUT, sometimes you need to have a good mortgage broker to search out and find the lenders that will do those....

What is your middle score now...and again, post over on the Mortgage forum also...

Yes, things are getting tighter, but if you truly only have a spotty credit history (and not trashed), from what I ve read you should still be able to get help.

[Anonymous]

Will move it thanks.

From what I have been told FHA is now score driven..

[sh9730]

Untrue.  Yes, some lenders are not offering to do the manual underwrites with too low of scores, but many still are.  Also, the mortgage insurance issues do not apply to FHA loans. 

Might be time to find a new broker....

Of course there may be ways for the experts here to help you raise your score in any event, but you need to provide more information....

What are your scores now?

How much of your revolving credit are you using?  (lowering utililization is by far the fastest way to raise score!)

Are there any errors on your reports that can be disputed and removed?

Ok,  I just saw you dont have any credit cards etc...it may be you need to GET one or two, but there are risks in applying for new credit, so dont do anything until people here review and help you.

Need more info!!  The helping you raise your scores is best left over here, but the question you should post on the mortgage forum is "who can offer you a loan given xyz circumstances"?

Message Edited by sh9730 on 03-02-2008 02:58 PM

[sh9730]

Ok, I see you edited with your scores, yes I can see why you are having issues....FHA is NOT score driven as I said, but many lenders are refusing to do loans less than 580....from what I ve read, there are still some, so keep the mortgage forum thread going.

Given what you ve provided so far, my first suggestion would be, can you get those "little old debts" that apparently reporting on your credit (Or you wouldnt have a 545) to delete the record in exchange for full payment NOW.  Getting rid of those will help your score quickly!

There are examples of PFD (Pay for Delete) letters all over this site.....

There may be other suggestions, but give details....how old are the debts?  Are they still with the original creditor or have they gone to collection agencies? 

[Anonymous]

Scores are from a copy of my landsafe credit report

Experian- 542 (Fair, Isaac V2)

Equifax- 0 None reported (Beacon 5.0)

TUC- 502 (Fico Classic 2004)

The are a few things wrong such as name on Equifax

I also have a judgement that is not mine on all 3 reports. Its marked satisfied. Its my farthers and I have already sent in the dispute.

[Anonymous]

I'll look for the letter right now. Should I send full payment with the letters?

[sh9730]

You trying through Countrywide by chance?  They use Landsafe...and from what I ve read the scores from Landsafe are usually lower than those pulled by some of the other providers (Kroll, Credco, etc).

Definetely get rid of that judgment!  That is killing you!!

[sh9730]

NO, do not send any payment until they promise IN WRITING, on their letterhead to delete from all the bureaus.  This is very important because a paid collection scores on FICO the same as an unpaid one....it is better for your mortgage, as they may want it paid (not always with FHA on that either!), but if you want to raise your score they MUST delete....read up on PFD here (use the search feature).