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FHA Mortgage Questions

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
New Member

FHA Mortgage Questions

Hi, 

So I posted this on the credit rebuilding forum as well....

 

Last year I started with a credit score of 550 and I have worked so hard at rebuilding for the last year so that I could purchase a home for myself and my children after a nasty divorce. Anyway, a year later, my scores are 612, 616, 630. I was so excited because the most perfect house came on the market and I thought I was close enough to the FHA requirements to be able to swing it! So I put in a mortgage application yesterday, but have not heard back yet (today is a holiday so hopefully Monday). I have been so exicted until someone on the credit rebuilding forum suggested I check my mortgage scores. I had no idea they were even different! So I paid to pull them on myfico (my other scores come from credit check total) and my mortgage scores are 514, 519, and 599!! I about cried. I've worked so hard the last year and had no idea there were even a different set of scores for a motgage! So with those dramatcially different scores, are my chances completely shot for now?? I know there is a lot more than goes into it, but my income is great, my debt ration is good, my revolving accounts are all good.... I'm worried about those mortgage scores now. Would a FHA lender possibly take into consideration my Fico 8 scores as well? I'm crushed.... 

Message 1 of 6
5 REPLIES 5
Valued Contributor

Re: FHA Mortgage Questions

Rebuilding is a lot of hard work, so congrats on being in the right path. I have been in rebuild mode for 6 yrs and hope to apply in February for my first home since 2000. So , I understand. Now, the hard part. Some lenders will go down to 500 FHA but they are very far and few between. Most require a 580 mid mortgage score . The mid score is the only one they use and they do not consider fico08. So for you your MMS is a 519. Also you must have a mid score if a t least 580 to qualify for 3.5 down , any lower requires a 10 % down payment plus closing etc. Who did you apply with and did you find out their minimum requirements before you applied? If I were you ( and I am) I would keep rebuilding until I was at least a 620-640 mid score
Message 2 of 6
Member

Re: FHA Mortgage Questions

Oh please don't be upset. Scores don't change over night but can be increased quickly!. Maybe you won't get the house this time but in a few months.

Hi, my name is Megan and I have a recovering fico score. In January 2016, when I first pulled my fico score, my mid score was 545 and my report had 12 collections and a judgement. No late payments but some pretty hefty collection negatives. I had opened 2 credit cards in Nov 2015 and a car loan (with an AWFUL interest rate) in Sept. 2015. I continued to keep my balances low with in time payments while I paid for delete some collections and disputes bogus/ flawed collections. Today I am a changed woman with a mid fico score of 682! 2 open collections totaling under 600 and a paid medical collection. No judgements on this girls report! Should be closing on my home Nov. 21st



So... You may not close on a home this year but I don't think it is unrealistic to shoot for March or April of 2017! Cheer up buttercup!
Message 3 of 6
Member

Re: FHA Mortgage Questions

P.S. I was able to get my mid mortage score up to 630 back in April. Not too bad considering I was chilling with a 545 in January.
Message 4 of 6
Highlighted
Super Contributor

Re: FHA Mortgage Questions

they will not factor any other scores except mortgage scores.

 

this happens all too often to people.

 

Retired Lender
Message 5 of 6
Established Member

Re: FHA Mortgage Questions

I was where you are today 12 months ago. I did some credit cleanup with Skyblue credit, Lexington Law does the same service but charges more. In addition to that I opened 2 secured credit cards, kept the balances low and paid on time.

 

12 months later Im at a mid-score of 597 and I'll be applying for an FHA loan at the end of the week.

 

Don't lose hope.

Message 6 of 6