Trying to qualify for a Fannie Mae loan, as this will allow me to get down payment assistance through my state. Community property state so I only qualify for the program without including spouse's income.
The house is a $250,000 home.
Current mortgage scores are 647 for mid score and 680 high
Income is $70k
Credit card utilization is on the high side: 1 card at 0 util, 2 under 50%, and 3 over 80%
One collection on each bureau (2 are medical)
Some accounts are showing "in dispute" but I'm actively working to get those removed
Taxes are on the very high side, which puts the front end ratio at about 43%, total ratio just under 50%
When my lender has run through DU, I am getting a denial (lender says reason is "too many risk factors"). I'm getting DU approval through FHA. My question is: am I doomed for the Fannie Mae qual? Should I even attempt to bump my middle score up to a 660/680 and retry or just save that cash for a down payment since I'm probably going to be pushed into FHA?
Has anyone had luck trying again with conventional?
