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How much does an Installment Loan hurt a Mortgage Score?

armadillo8
New Member

How much does an Installment Loan hurt a Mortgage Score?

I have been stalking the message boards and searching for a possible answer on this, so forgive me if it's already been answered. My husband and I are in the process of building a house. We have been working for over 9 months to get our credit score high enough to qualify. We have paid off most of our debt except our car loans and our mobile home, which we plan to sell when we move in to the new house. My question is, how much would a consolidation loan through Best Egg or another company hurt us right now. We would want to take out a loan to be able to just have one monthly payment to lower our utilization ratio. I know that you shouldn't apply for new credit when you are looking for a mortgage, but it would put most of our cards at zero balance and what is left would be at 20% utilization and the one installment loan. I have learned so much through this board already and am anxious to learn more. 

Thank you! 

Message 1 of 3
2 REPLIES 2
JVille
Valued Contributor

Re: How much does an Installment Loan hurt a Mortgage Score?

Do you have Equity in the MH? Sell it and move in with family or rent temporarily.
Message 2 of 3
MauiMan85209
Established Contributor

Re: How much does an Installment Loan hurt a Mortgage Score?

Installment loans weigh heavy against mortgage scores, especially if they were just opened.

" EX 718 EQ 730 TU 737 MMS 742"
Message 3 of 3
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