FICO score needed for navy federal credit union 100% homebuyers choice mortgage

[rubicon]

Thanks so much for the info. Idk what my gf mortgage scores are just her fico and my mortgage scores are lower than my fico 8. I checked my mortgage scores and see a middle score of 600

Utilization = 57%
4 of my cards have zero balance
1 card has a $300 balance which I just paid down to zero but it's not reporting yet
2 remaining cards carry my debt which are my nfcu cards
1 baddie $600
1 closed account appears with a balance of $1000

I'm guessing I need to hurry and get my util down or will LO look at my file and make recommendations on what I need to do in order to qualify?

[Revelate]

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@rubicon wrote:
Thanks so much for the info. Idk what my gf mortgage scores are just her fico and my mortgage scores are lower than my fico 8. I checked my mortgage scores and see a middle score of 600

Utilization = 57%
4 of my cards have zero balance
1 card has a $300 balance which I just paid down to zero but it's not reporting yet
2 remaining cards carry my debt which are my nfcu cards
1 baddie $600
1 closed account appears with a balance of $1000

I'm guessing I need to hurry and get my util down or will LO look at my file and make recommendations on what I need to do in order to qualify?

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Closed revolving accounts with balances are ugly as far as FICO goes.  Kill that if it's an old revolving line.  If it's installment, maybe not though I'd look at the reason codes from the MF scores "commonly used for mortgages"

What's the $600 negative?  Check over in Rebuilding and see if you can address the particular issue.

Beyond that what's the current balance / credit limit on the two NFCU cards?

LO's may make recommendations but I've never seen one, ever, who offered better advice than what's found on this forum or in a few other places on the net... and sometimes the advice they give is sadly laughable and sometimes wrong to the point of potentially damaging their client's credit.  Always sanity check what the LO says here in my estimation: worst case you waste a couple of minutes of your life posting if the LO was spot on with the advice.

[rubicon]

$600 is a utility collection item that I will have to pay as I've exhausted other options

$1000 is an installment loan that is closed

NFCU balances are:
4431/5000
1357/2000

Discover is 300/1000 (I just paid this down to zero)

Cap 1 is 51/600 (just pod this down to zero)

Cap 1 301/1100 (I'm about to pay this down to zero)

Amex 0/1000

Best Buy citi - 0/1000

My cards are all around 10-12 months old and my avg age of credit as a whole is 4.5 years with oldest student loan being 18 years old

[Anonymous]

Here's my reality check: 

You have 2 recent unpaid collections. Take care of them and watch your scores rise.

You have 2 credit cards that you "carry debt" on that are lowering your score in a big way. Pay them down until every card reports a zero balance except for one lone card that reports between 1-8% of its individual limit. 

Take care of the baddies and the utilization issues and your scores should see a significant jump. But once all that is done you have have to pull a 3B report again to take stock of where you are. Depending on factors unique to your individual file you could be ready to go almost immediately or you could be a year or more away from any realistic shot at the loan you desire. 

I hope this link works:

http://ficoforums.myfico.com/t5/Mortgage-Loans/Do-I-qualify-for-a-mortgage-Info-that-is-needed/td-p/...

It is to the thread that tells you the info needed for us to give you the most detailed and accurate answer we can as to whether or not you are close to being ready for this product after doing the above things. 

Bottom line: At 600 mortgage score it's a moot issue. Not gonna happen. But if you work on a few things and possibly (or maybe not) wait for a period of time you can be ready and in a position to get what you seek.

[oldman425]

Looking at what you have, honestly I think it might me a bit hard to get into a mortgage.  Keeping that in mind, you can call NFCU to see if you might qualify.  They will do a debt to income ratio check and will be able to answer your questions. 

Best of luck.

[rubicon]

I'm in a position where I can pay about 90% of all of this if it will give me 60-100 mortgage points

[Revelate]

I'd ask how much cash you have to throw at this, about 5000 given your 90% comment?  Just purely from a FICO scoring perspective:

Ignore the collection for now, if the LO mandates you pay it off do it as a function of closing.  If you can't get it deleted it does you no benefit from a scoring perspective (at least for mortgages) to pay it.

Ignore the installment loan (other than just making regular payments)... I don't really know how a closed installment line factors, but since two of the three scores used in mortgage underwriting ignore any sort of installment utilization, personally I'd just leave it alone other than making certain I didn't get a late on it.

The 1357/2K line, you're not in bad shape there but if you have the amount intimated, pay that off completely.

Toss the rest to the 4431/5000 line, this is probably hurting you as an individual tradeline (>80%) and also your aggregate revolving is just under 50%, which also isn't optimal.  You want to pay your revolving utilization down, at a SWAG based on your file I'd pay it down to $1000 and then see where I stood score wise.  Short term optimization that's about the best you can do.

You also have likely several inquiries that are passing out of scoring range (1 year) in a few months which if you're trying to really get as clean as possible, I'd wait for that: for reference on a severe derogatory scorecard the difference between 2 and 3 inquiries on EQ FICO 5 (one of the mortgage trifecta) was 7 points for me which can make or break a tier when talking mortgages for those of us who aren't gold plated.

I kinda doubt you're getting 100 points, but it depends how old that collection is... on a highly optimized file I got to 720 with a tax lien, collection, and lates from 2010 back in 2015, so it's entirely possible even with the collection on there but everything was ~5 years old at the time and that does make some difference even on the mortgage trifecta.

[rubicon]

Thanks for the very helpful info. I sold some stock, going to pay $5000/6700 outstanding credit card debt I have and see how it impacts utilization and subsequently my mortgage fico. If I get a 50 point bump that will put my mortgage fico at 650 which should do the trick.

[Calidreaming]

I got preapproved with a 665 mid score for NFCU's Homebuyer's Choice program.  However, the rates and fees were so insanely high it just wasn't worth it.  Even their best rates were very high and if your scores are that high, you'd probably be better off looking for a zero down mortgage from a local credit union or scraping up a 3% down payment to qualify for a conventional first time homebuyer program or FHA. 

Also, while others have had great experiences with NFCU's loan officers, I most certainly did not.  I never could not reach my assigned loan officer.  EVER.  Even when I went under contract for a house.  I also decided to go with FHA instead of Homebuyers' Choice, but could get no contact from her about it, so I had to go with another lender.  I think whether you get a good loan officer with them is just luck of the draw. 

[rubicon]

What did they quote you in fees if you don't mind sharing?