Jump to content

Need 10 Points to get to 640 for FHA Loan


reitreby2024
 Share

The last post in this topic was posted 3285 days ago. 

 

We strongly encourage you to start a new post instead of replying to this one.

Recommended Posts

Dear Credit Boards-

 

My wife and I are trying to approve for an FHA loan. Our loan broker states our middle FICO score is 630. I've been working with a credit repair company for a year now, and much progress has been made.

 

My wife and I and our two children are trying to get an FHA loan (since we had a foreclosure in 2010) and their wait period is 3 years (compared to 7 for a conventional loan) - as I understand it. We have a 20% down payment on a $700k purchase price ready to go.

 

My middle FICO is 630, and I need 640.

 

My question pertains to a 2nd loan I have on a primary home which was then turned into a rental property. The first loan is an ARM at 3%, and the 2nd, if I recall correctly, was used back when I purchased the home as the 20%. I called the lender and confirmed that this loan is a "line of credit" rather than an installment loan. The balance is $20k, and the interest rate is 5.5%. The balance is $20,000 on a credit line of something like $22,000.

 

Do the credit bureaus see this as a maxed out credit line and not as a 2nd on a loan? I read that this might be the case since the balance is less than $30k.

 

Would paying this down to under 30% be beneficial to my credit score, and do you think it would move the needle around 10 points?

 

I thank you very much for your advice!

 

-RetireBy2024

 

Link to comment
Share on other sites


The last post in this topic was posted 3285 days ago. 

 

We strongly encourage you to start a new post instead of replying to this one.

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share




  • Member Statistics

    • Total Members
      185294
    • Most Online
      2046

    Newest Member
    Tara19
    Joined
×
×
  • Create New...

Important Information

Guidelines