Need help figuring out mortgage loan FICOs

[Suthrncomfrt1884]

So I've been rebuilding my credit for the last 12 months, and I'm finally to the point where I think I can manage a mortgage loan.  But, I had a few questions.  

My FICO scores are showing EQ 716 and TU 712.  I haven't checked my EX because I've heard it's not accurate.  I believe my scores are showing a bit higher than what a mortgage lender may pull, so I'm interested in how the scores compare to the scoring models they may use.  

A little bit about my credit currently... 

Bankruptcy from 2005

1 chargeoff from 2007 will fall off in april or may of 2014

6 closed accounts (car loans and CC's)  all in good standing paid as agreed no lates.  

4 open accounts (1 car loan, 3 CC's) all in good standing never late.  Oldest account is 10 years old but is inactive.  All other accounts opened within the last 1-6 months.  

1 AU account with 23k CL, no lates, 15 years history, low UTL.

My overall UTL is 3% right now, but I can get that to 0% if it'll help.  

I'm afraid that the AU account is inflating my credit score and that a mortgage lender won't take it into consideration.  With this credit history, can anyone give me a good idea of whether or not I'll be approved for an FHA loan?  My income and time at current job are fine.  I'd like to get pre-approved now and start shopping, but if that's not possible, I can wait until my other chargeoff falls off.  

Any advice?  Thanks.  

[tooleman694]

Your credit is way more then good enough for FHA, heck you are probably better off going conventional.

The EQ score you pull here is the same exact score the lender will pull.

The TU and EX scores will be different.

In my experience, the TU score I pull here is about 20 points lower then what the lender gets. The EX score was very close.

However, that charge off you have from 2007 could stop you from getting a mortgage since it is post BK. You may need to wait it out.

[DallasLoanGuy]

 i strongly recommend you look at conventional.

the new accounts are not considered valid trade lines.... so you might be considered 'thin credit'

see if your loan officer has the ability to submit to underwriting BEFORE they issue the preapproval.

[Suthrncomfrt1884]

Thanks so much! Dallasloanguy...aren't FHA loans easier to obtain for those with spotty credit? Why would a conventional loan be a better option? And do you think I stand a good chance of being approved or should I wait until my chargeoff falls off and at the same time allow my credit lines to age a bit more? Why wont they consider new trade lines valid...do they need to be more than 12months?

[DallasLoanGuy]

---

@Suthrncomfrt1884 wrote:
Thanks so much! Dallasloanguy...aren't FHA loans easier to obtain for those with spotty credit? yes. and most lenders can do a manual underwrite fha for thin credit files. Why would a conventional loan be a better option? no upfront pmi. monthly mi is cheaper. pmi drops off after you get to 78% ltv. fha pmi is forever And do you think I stand a good chance of being approved or should I wait until my chargeoff falls off and at the same time allow my credit lines to age a bit more? good plan. you would have a SOLID chance at conv if you got his route. Why wont they consider new trade lines valid...do they need to be more than 12months? yes

---

if the lender downgrades the file to manual fha.... i think the charge off would kill the deal.

doesnt hurt to try though. most lenders dont charge anything to apply

[Suthrncomfrt1884]

I guess my concern is that applying now will affect my credit score.  Not that I can't bounce back in 6 months to try again, but I'd hate to see my inquiries get me rejected in the future.  

[DallasLoanGuy]

---

@Suthrncomfrt1884 wrote:

I guess my concern is that applying now will affect my credit score.  Not that I can't bounce back in 6 months to try again, but I'd hate to see my inquiries get me rejected in the future.  

---

an inquirie might cost you 3 - 5 points.

all of which you will have gotten back in 6 mo

a mortgage inquiry now wont hurt one bit in 6 mo

[Suthrncomfrt1884]

Thanks everyone for the responses. I'm happy to report that I was In fact able to be preapproved for a conventional mortgage. I've done a lot of work to get my credit back on track and I'm finally there. Lender pulls were better than expected. 722 EX 716 EQ and 705 TU. Up from 588 TU six months ago! It can be done.

[DallasLoanGuy]

congrats