My husbands EQ score is a 558, but we just had a 30 day late payment from december removed and we settled a charged off credit card that was supposed to update as a $0 balance and settled, but instead it updated to a $96 balance. He got a 47 point jump from the card going from $368 to $96, but it should of reported $0, and they said it should update next month, so when the 30 day late falls off and the card reports a $0 balance I expect another jump. He also has 2 collections falling off one in May, one in July, not sure if it is typical to see a jump when 2 collections fall off or not. That will leave him with a repo from 2008 and a verizon wireless collections with Midland from 2007 that is actually his dads account, they have the same first and last name and lived at the same address and there have been several of his dads collections show up on my husbands CR. One of the collections that is fixing to fall off is a verizon home phone collection that was his dads. We disputed them and were only able to get a directv collection and medical bills that weren't his removed. I'm not really sure what to do about the verizon wireless acct since its his dads, I may have him call the CRA to see what they can do. But with only the repo and verizon wireless collection would we have a shot? He also has an auto loan he's had for 14 months that has been on time every month with the exception of one month because we mailed it and wrote the po box number down wrong but they agreed to remove the 30 day late so that will be coming off soon. There is a business called signature homes that builds new homes under USDA loans, those are the only types of loans they do, and i've been talking with the lady who is in charge of the credit aspect and she said you have to have a 640 for the direct (which we qualify for income wise) and a 620 for the gaurunteed. But she also said if its not a 640 and there are no collections then you can normally get approved, but we will have the repo still (which we can't pay, it's $7400) but i've also read on this forum, there is no score requirement for the USDA loan... it goes more by your credit history. The lady won't even put our application through to the USDA until the score is a 640 I don't think, or maybe if we're close to a 640 with only the repo on his credit she will, not sure. So part of me just wants to go through the actual USDA and pick out a house, instead of going through them and having one built. Any tips, advice, experience etc.? Oh, and he was approved for a secured cap one card we will be paying the deposit and getting next week so that will help boost his score some too over the next couple months, along with (possibly) the 2 collections falling off and the 30 day late coming off and the charged off credit card reporting $0 and settled instead of $96 and bad.
Starting Score: EX 575/TU 534/EQ 570
is the qualfying process a lot different between the direct loan and gaurunteed loan?