Help...

[Anonymous]

I talked to a BoA loan specialist today and he basically told me everything that isn't on these on these boards. He told me that myfico.com is a 3rd party and the scores are not accurate. The only ones that are come directly from the lender's websites. All of those sites have FAKO scores I thought. Additionally, he told me that BoA has the ability to do FHA under 620 which I thought was impossible. Can someone tell me if this BoA guy is out of his mind?

Thanks. 

[Anonymous]

Soudns off to me. Lenders can choose to do loans sub 620 so that may not be a lie but i know several people have been told that up front and had a loan fall through last minute.

Myfico scores are the real actual scores. However, myfico does sometimes use different/older versions of software giving a different score than the lender.

[Anonymous]

It all depends on the version of FICO scoring that the lender uses.

We were preapproved through 2 different lenders, who both gave us different scores, because they both use different versions. And those scores didn't match with what we pulled on myfico.com....very close, but not the same.

It's true that lenders do go directly to the credit bureau's for the scores though. It's just that the credit bureau's don't give us, the consumer, the access to those scores. They give us FAKO scores. 

Both of the lenders we looked at required at least a 620 mid-score. If you're married, like I am, they use the lowest of the two mid-scores. So, for instance, my mid-score is 804 and my spouses is 640, they based it on his score. They don't even take into consideration my scores, which really sucks.

On another note, make sure you ask if they give you a higher interest rate for a lower score for an FHA loan. Our broker told us that the rate is the same for all FHA loans whether your score is 620 or 820. That was false. She later found out that the lender she chose for us charges an extra .25% onto our interest rate for having a score between 620-650. Luckily she gave it to us as a discount.

Good luck!

We just closed yesterday on our first home!

[Anonymous]

620 is the standard now for FHA.  That can be worked out with enough compensating factors and the right lenders, but you better have a really solid file, high reserves, high down payment, and low DTI.  Most won't fall into that case and still have a sub 620 score.  And you will be charged more for a sub 620 score. 

Many LOs say they can do a sub 620 score and it may be a technical possibility, but the reality is that few people with a sub 620 score are going to have both a strong enough file (i.e no lates 24 months, low DTI) as well as large reserves and down payment to offset the low score. 

It's king of like the buy here pay here places that say they can finance anyone.  They may be able to, but many people would not be able to meet the terms (nor would it really be in their best interest) 

[Anonymous]

Thanks for all of your replies. Here are some of my stats and you can tell me if you think I have a shot:

House we are looking at: 132,900

Combined income: 85k. Mine 70k, her's 15k

Credit scores: ME: 583,625,???

Credit Scores: HER 650,660,???

DTI: 8%. Only have 1 credit card with a $50 balance on a $1000 limit,, car loan for $283 and student load at $210

Money in the bank: 20k. 10k has been there since February the other 10 saved over a year and a half

No late payments since August of 07.  All collections paid in full but still showing on report.

I wish I could get that third number. 

To me, I don't mind being charged more if I can get a house. I've paid my debt for my mistakes, I have a 2 year old kid who needs his own house. 

Thanks for all of your help.

[Anonymous]

Yeah you're in a tricky situation. I think the only thing holding you back right now is not knowing the 3rd score.

Typically, the only quick way to get a boost is to pay down credit cards but you don't seem to have that as an option. Another possibility might be looking over your collections to see if you can get any of them deleted entirely. If you've paid any, contact them and ask for a delete. They don't have any reason to do so if they're already paid off but it couldn't hurt to try. Otherwise, if you have some with open balances it might be helpful to contact them and see if they will agree to delete if you pay them off. However, you have to be really careful... messing with old collections in any way can sometimes re-age them. That will almost guarentee a denial on a mortgage.

[Anonymous]

Hey guys,

So I went to the bank and we were pre-qualified for 150k. FWIW the LO told me that she went a step further than pre-qualification but short of pre-approval. She pulled my credit and looked over my savings and income information. It sounds like I might be ok but who knows. She told me I was qualified for a "level 1 fha loan" with 10% down and a "level 2 fha loan" with 5%. This was through BoA. She told me that the level 1 should be an almost guarantee. Does this sound right? Is she blowin smoke or is she serious? FWIW also my mid score was over 600 but under 620. 

Thanks.

[Anonymous]

20K cash on a 130K home opens some doors for sure.

[Anonymous]

Dallas/Shane,

Can you ready my scenario and let me know what you think. I went through BoA home loans where all my money is. Something doesn't seem right, I hope I'm wrong. Just trying to see if I'm actually going to get approved. 

Thanks.

[DallasLoanGuy]

they can go below 620

i dont know what level 1 and 2 are because those are internal codes to them.

 loan officer is kind of right with regards to scores. all sites are fako, except myfico. this place has the only true fico. however, i believe the one lenders get is mortgage enhanced and the one here is generic. opinions vary on this.