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I think it depends on the lender. I was told by one that I needed to pay all my old CO off and went to another one and didn't have to. My most recent was 2008, but I've had a clean history and on time payments for 4 years. Closed USDA with a 621 and 4 open Collection accounts.
Current Score: EQ 699 TU 719 EX ? as of April-2016
When I moved to Kansas in 08 I was denied by USAA for a mortgage. I was in denial at that point but I was probably around your same scores. I was pretty depressed for a few days. Of course this was when the housing market was in freefall and it was just about impossible for anyone to get a mortgage. Turns out it was a blessing in disguise - if I had bought a house at that time I would be way underwater right now. I have been renting for 3 years and been able to get my debts mostly paid off and my scores up to 764. I'll probably be due for another military move in a year so it might be a good time to buy depending on the assignment. Moral of teh story - keep working at it and you'll get there faster than you think.
Quote from a website on FHA qualification.
'Minimum credit score requirements for FHA home loans depend on which FHA loan product the applicant needs. Generally speaking, to get maximum financing on typical new home purchases, applicants should have a credit score of 580 or better. Those with credit scores between 500 and 579 are, according the the FHA guidelines, "limited to 90 percent LTV".
Applicants who have a minimum decision credit score of less than 500 are not eligible for FHA mortgages.'
Hi CS, thank you for responding...I am using my VA loan. So I need that 620.
And subsequently I found a broker through a referral from another member here that is very hopeful that within the next month I will get the 4 point increase I need for a 620 mid-score so that I may utilize my VA. That zero down on the va with a 4.75% interest rate is just too good to pass up.
IPayton - I PM'd you again.
I think these lenders get their jollies by yanking people around. I'm trying to get an fha loan. I have been told so many things by so many different people. I empathize with the original poster, who was told if he hit 620 he'd be all set. Then, when he reached the milestone, was told he needed 20 more points. This has been the story of my experience as well.
I started with 578 credit. Was told to get to 580. I didn't know what fico was, and used freecreditreport to judge my progress. I did a nice pay for delete, found some erroneous reports, had them deleted, and did one small pay after charge. I watched my scores jump to average of 650 in just ten days. Feeling so proud, I went back to re-apply, only to have the same 578 come back in my face. Then I learned what fico is. The more I learned, I realized how little others understand this system. By others, I mean mortgage lenders.
I started calling smaller, locally owned banks (if such a thing exists). I would ask "do you use fico scores or the big three scores to gauge credit". 28 people said they only use the big three, while two said they use fico. When pressed further, the 28 turned out to all use fico. They don't even realize fico is an organization, not just a score.
How is it possible that this one organization, who controls all of our personal information, is so unknown? This seems like a purposeful deception.
@Anonymous wrote:I think these lenders get their jollies by yanking people around. I'm trying to get an fha loan. I have been told so many things by so many different people. I empathize with the original poster, who was told if he hit 620 he'd be all set. Then, when he reached the milestone, was told he needed 20 more points. This has been the story of my experience as well.
I started with 578 credit. Was told to get to 580. I didn't know what fico was, and used freecreditreport to judge my progress. I did a nice pay for delete, found some erroneous reports, had them deleted, and did one small pay after charge. I watched my scores jump to average of 650 in just ten days. Feeling so proud, I went back to re-apply, only to have the same 578 come back in my face. Then I learned what fico is. The more I learned, I realized how little others understand this system. By others, I mean mortgage lenders.
I started calling smaller, locally owned banks (if such a thing exists). I would ask "do you use fico scores or the big three scores to gauge credit". 28 people said they only use the big three, while two said they use fico. When pressed further, the 28 turned out to all use fico. They don't even realize fico is an organization, not just a score.
How is it possible that this one organization, who controls all of our personal information, is so unknown? This seems like a purposeful deception.
+1