Mortgage scores for conventional loan

[Anonymous]

Hi, I have 3 charge offs reporting as CO every month with balances.so Paying them or Settling them off and reporting balance as 0 on all 3 accounts is good to improve my mortgage scores 575/580/611?? Also these 3 charges off making my revolving uitil over 55% now though I have 0% until on open cc. Appreciate your answers

[Anonymous]

Currently I had 0% utilization on open 2 credit cards. I had 2 installment loans paying on time. One 18% paid and other 6% paid

[DGOATS1]

Paying CO on my wife’s side and my side did in fact increase the mortgage scores. I still have 1 CO installment to be paid at end of July and hopefully that will bump it too. There is definitely an indicator/reason for score as past due amounts.

The question is by how much? That will all depend on your individual file.

In my view if you want the mtg. You pay it as soon as possible and put some age in the derogatory.

Obviously if you can get PFD it’s best

[homeloanexpert]

WIth your credit scores, a conventional loan will be a tough go. I suggest an FHA. We lenders don't require you payoff or to consider them in your DTI on this loan product. Open collections are different.  First, we disregard all medical bills and any collections under $2,000.00. If your (non-medical) collections are greater than $2,000.00 then we hit you with an 5% imaginary payment and add it to you DTI. Effectively shrinking your buying power.  I caution you. I won't payoff any collections (especially is they are several years old) as your scores will most likely drop. The exception to this would be a pay for deletion or if was a recent collection. Hope this help!

[Anonymous]

Thanks! My chargeoffs are all reporting every Month. Also my loan would be over FHA limit for that state.
My fico8: 612 Eq/ 679 TU/ 640 E
Mortgage scores: 575 Eq/580Tu/ 611 EX
My fico8 simulation show I get 692/709/680 if I pay all CO.
So how muchrise can I expect in mortgage scores. Appreciate your inputs

[Anonymous]

Also my equifax scores may be wrong as I had a dispute open on that file

[MauiMan85297]

Those are FHA scores, even if you were to get to 620 the rate for CNV would look ugly and points involved.  Conv is best with scores 680>

[Anonymous]

I want to mak 25% down payment. So I need mortgage about 450k. I hope that could offset some if I can get 630 mid score

[homeloanexpert]

When I get a request for a CONV loan, and I know it most likely won't fly, I will still give it try in the AUS. But if can't get it to approve, I'll roll it to an FHA. If that doesn't work or the borrower (like you) doesn't want an FHA, that only leaves our ALT-A or NonQM loan products. And that's it. I'll price it out, send the borrower the rate sheet and a cost breakdown and explain the terms of the loan. The borrower will either try to work on their credit and raise the scores, or moves forward with the understanding they can always refi down the road once the credit improves.

[Anonymous]

Update: paid 1 600 $ chargeoff credit card. Nice boost on EX mortgage score 611-625
FICO 8 not much though from 640-644