20 Points Shy From Getting A Mortgage Loan With Quicken Loans

[Anonymous]

Thanks for your help.

I'm trying to get a FHA mortgage loan from Quicken Loans and they're telling me I'm 20 points shy. 

Trying to think of what I can do.

I have a collection that's paid but need a deletion letter. They told me it would give me 35 points. I was told it would be removed, but it wasn't. Called them and I was told no.

I have around $2K in credit debt, another $47K in auto loans. All in good standing. 2 cards at 50 percent utilization. 1 at 35 percent. All others are well below 10 percent, a few with zero balance.

My average score is 620 according to Quicken Loans. They said I need a 640. Said I needed 640 because of my assets and being self-employed.

According to their simulator, paying CC debt down would only get me to 634. 

Any ideas, thoughts, recommendations would be greatly appreciated. GREATLY.

[Sbrooks1]

Run from Quicken, even with preapproval they don't close many times.  There are much better and reliable online lenders out there vs  local mortgage companies. The FASTEST way to increase your mortgage scores are to pay all your cards to zero except one and keep that one <8.9 %. I highly recommend Guaranteed Rate as an online lender, or ask friends and family or your realtor who they recommend locally. Good Luck

[Anonymous]

Thanks! I appreciate the recommendation and advice.

[JVille]

Ditto Run from Quicken!

[NC_Mtg_Loaner]

There are lots of lenders that originate FHA loans with a 620 credit score.  Sounds like you could have some kind of DTI restriction, but talk around and find someone you can trust to guide you.  

Rates and fees are low and competitive but this is an area where you shouldn't skimp and save.  Good lenders and loan originators are worth it.

[homeloanexpert]

Many of us lenders can go down to 580 across the board on government insured loans. To tell you the truth, I thank my lucky stars for lenders like Quicken. Lots of good people unfortunately get turned down by them and end up in my hands. FYI, remember the Government Agencies (FHA, VA, USDA) don't actually have minimum credit score requirements, it's up to the individual lender to decided their level of risk. You have two options, you can raise your score by paying down your credit balances and go back to them, or you contact another lender as you are. 

Best wishes to you!

[Anonymous]

Search MyFico for "Credit Shield 360"  I have seen alot of posts where people have gotten favorable results in a short time frame.  Maybe a good option to help with your removal and facilitate a quick score jump?

[EaglesFan2006]

I would avoid Quicken...they said something similar to me after granting a pre-approval.  While my credit was not ideal, it was certainly not shy of any reputable approval for FHA.  I reached out to a couple of local lenders who offered me better rates and terms than Quicken, and were far more easy to work with.  So I chose a local lender and had a great relationship throughout the whole process until we closed in September.  Before sticking it out with Quicken, I would definitely look at your other options.