4 points away! Closing April 23rd...???

[Anonymous]

I started around November working with a Mortgage Broker who helped me with my credit. My ex ruined it during the last few years of my marriage. Everything about my portfolio is wonderful except my score!

I have no debt, 50K in cash, 270K in assets, 18+ years on my job, no repos...

but my mid score is 616!

My lender has worked up a loan with an outside company. He told me there are only two lenders in the US that will write for under 620.

I am aiming for the first time homebuyer tax credit. I have not received disclosures yet on the loan and I'm about to panic. I have an investment property that I own free and clear with a market value of about 126K and I could probably sell it within a year or two and pay off all but 50K of the mortgage.

Is there any way my credit could make that last jump before I close on April 23rd? Advice?

I did apply for a 2nd secured card and have not received it yet. I currently have only 3 credit cards:
Cap 1- 500 limit

Secured MC- 1125 limit (I always keep 20 bal. Use it and pay down to $10 daily)

and plan to do the same with the new BOA card secured for $880

I don't want to get the tax credit only to screw myself over on the interest rate. I also need a place to live as my time has expired in the current home due to the divorce decree...

Any advice is appreciated! I also have means to possibly have someone else purchase the home and take it over from them when I reach a better credit score.

[Anonymous]

Honestly, getting the secured card was a mistake.  You are not going to see a score bump from getting it.  If anything you will see a score drop for the new account and the inquiry.

There are more than 3 banks doing sub 620 FHA loans if you have 50K cash sitting around and assets to back it up.  Your broker may only use those 3 though. 

[gpeach]

Don't apply for ANYTHING else! Every inquiry takes points away. And when you add a new account your points can drop too.

Has any of the inquiries or accounts hit your reports yet?

[ShanetheMortgageMan]

Get revolving balances down to $0 (make sure they are reported that way) and have a new credit report checked.  I've seen small score  increases from people who normally carry CC balances of 1-2% pay them down to $0.  Might just do the trick.

[Anonymous]

Hi 0118penny! Welcome aboard!

What, exactly, is holding your score down? Can you list the derogs?