Hello All,
I'm just a bit confused on what I need to do or where I need to have my credit in order to qualify for an FHA mortgage...here's the short of it.
I have been looking at homes online religiously as a motivator and REMINDER of my goals.. A realtor contacted me from one of the sites I was browsing..(you had to enter your info to view the properties). I explained to him I was just perusing but looking to buy in the next 3-6 months, right around the time my lease ends. He asked a few more questions then said he'd pass my information to a lending company that works with first time homebuyers.
So the following day I receive a call from a rep from New Penn Financial (anybody know them?). Since I wanted to know where I am credit wise and needed my Experian FICO I figured I'd let her pull my credit. After not hearing back from her after two days passed, I called. No answer. So I called the realtor back. He said the rep had to make a quick trip out of town, probably hadn't gotten back yet, and they spoke breifly about me..I have a few things on my credit I need to take care of.
The rep calls the following day..she apologized..she was out of town and didn't have all my information with her but she recalled that I had 1 collection I need to PFD and pay down a credit card and would call me back Monday with more information.
Yesterday I received a denial disclosure in the mail. This is the jist of it..
Name of Score: EXPERIAN/FAIR, ISSAC (VER.2)
Credit Score: 0635 Range: 320 to 844
Key Factors effecting the score:
SERIOUS DELINQUENCY AND PUBLIC RECORD FILED OR COLLECTION FILED
NUMBER OF ACCOUNTS WITH DELINQUENCY
PROPORTION OF LOAN BALANCES TO LOAN AMOUNTS IS TOO HIGH
TOO MANY INQUIRIES LAST 12 MONTHS
Name of Score: TRANSUNION/FICO CLASSIC (04)
Credit Score: 661 Range: 309 to 839
Key Factors effecting the score:
SERIOUS DELINQUENCY AND PUBLIC RECORD FILED OR COLLECTION FILED
TIME SINCE DELINQUENCY IS TOO RECENT OR UNKNOWN
NUMBER OF ACCOUNTS WITH DELINQUENCY
LENGTH OF TIME SINCE DEROGATORY PUBLIC RECORD OR COLLECTION IS TOO SHORT
INQUIRIES IMPACTED THE CREDIT SCORE
Name of Score: EQUIFAX/FACTA BEACON 5.0
Credit Score: 0635 Range: 33 to 818
Key Factors effecting the score:
SERIOUS DELINQUENCY AND PUBLIC RECORD FILED OR COLLECTION FILED
NUMBER OF ACCOUNTS WITH DELINQUENCY
TIME SINCE DELINQUENCY IS TOO RECENT OR UNKNOWN
LENGTH OF TIME ACCOUNTS HAVE BEEN ESTABLISHED
NUMBER OF INQUIRIES ADVERSELY AFFECTED THE SCORE, BUT NOT SIGNIFICANTLY
I do not have any public records filed on any report, however, I have 2 collections, one filed in 2008 for $926 and 1 in 2010 for $1200. The one filed in 2010 is not valid and has been a pain getting removed. The other is a timeshare 'deal gone wrong'. Last year I purchased a car and refinanced this year w/ my credit union. The heavy inquiries are from last year's car purchase. I haven't had any late payments since 2010 and those 2 lates are from Sallie Mae. I have 2 credit cards opened this year in April, Orchard $300 limit and Capital One secured w/same limit, never late. The balance is $5 from both. My only loan balances that are high is the car refi loan that was opened in June.
I haven't heard back from her. Now I'm a bit jaded because she eagerly contacted me to get things started and said if I didn't qualify they had a FREE service to help you.
Can someone explain the FICO scores (are they real FICO? a lender pulled them)? What should I do to qualify? It looks like my mid score is 646 but I'm still not qualifiable (is that even a word? lol)...Any advice is appreciated!
Starting Score: EQ 593
Hey CC40! Thanks for responding :-)
Ok..so how do you calculate the mid score?Yeah my numbers were off.. I was trying doing math in my head..smh..but I just went back and actually added the 3 scores, 661, 635, 635, then divided by 3 and got 643.6..that would average to 644, right? I thought that you can have a minimum 600 but preferably 620 to qualify for FHA ..I know banks and lenders have their own requirements..my credit union told me I need a 640.
The great thing is I can see that I'm closer to my goal than I thought. My Experian FICO score was veddy veddy low..like 523 back in May. I app'ed for a Macy's card to get my score but in hopes I'd get the card too, and of course I was denied.
Since I won't seriously be looking until about Dec./Jan., I have more time to get the scores up...I started this journey Feb 2012 at a score of about 590.
Hi my25 reasons..where are you getting my scores from?..My scores are 635 Exp, 661 Trans, and 635 EQ...am I reading the scores wrong? Look at the credit scores in my original post... The TOTAL balance on from both of my credit cards are $5. I think it's the car loan that's has the high balance since I just refinanced.
Being a first time homebuyer is the most frustrating, confusing, and I'm sure rewarding (eventually) process...I just want to find an honest and reliable lender to help walk me through the qualifying process...it's like they just pulled my credit and kept going..
AHHHHHHHH TBC!!! OK, got it!! I misunderstood all this time..see this is what I'm saying about being a first-time home buyer..getting the right info is pertinent when you don't know/understand...
Thanks for breaking it down...I'm going to call this lender back because THEY should have explained things more thoroughly..she said the AVERAGE of my 3 scores was 635..Hey I'm an educator..key terms take me to another level! LOL!!
Thanks Ron...I'm getting a better understanding now...ok so there ARE 620 Programs out there..I've been doing research on qualifications and debt to income (that's why I refinanced my car..my payment dropped $100 monthly.
I'm glad I posted...you guys are the bomb!! Trust me ANY info/guidance is better than none!