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Mortgage approval

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We have found a home we’d like to buy. We will be 2 years out of a deed-in-lieu on April 30.

 

Is it possible to get a USDA loan? Is it possible to get a regular mortgage?

 

Some places say 2 years some say 3.

 

I have not paid for my FICO scores yet. But my husbands Equifax is 656 and mine is 605.

 

Any advice?

 

 

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Well the deed-in-lieu. Also on mine inquiries. We just took out personal loan to pay off all credit cards which some still haven’t hit our records yet. There’s been nothing late besides the mortgage in years.

Our scores have been rising as credit cards show paid off.

We also have a car loan less than a year old but our car was dying so we had to get a new one.




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I have our FICO scores now that a lot of updates have been made.  My husbands scores are:

 

EQ-674, Ex-698, TU-720 which would average to a 697

 

My scores are:

 

EQ-668, Ex-681, TU-705 which would average to a 684.

 

Scores aren't as bad as I thought.  Should we be able to get a approval?  

 

Thanks

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I can't comment on your odds of approval, but just want to clarify a couple things regarding scores...First of all, are these the mortgage scores bought from myFICO? There are many different scoring models, you want the ones that are used for mortgage lending. 

 

Also, if you are applying jointly, they will use the LOWER of your MIDDLE scores (not average). So in your case, if those are mortgage scores that you listed, your husband's middle score is 698 and yours is 681...They will use 681 in that case.

 

Good luck!

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Yes they are mortgage FICO. We have gotten an fha approval through automated underwriting. Wish us luck on rest of process.


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On 4/7/2019 at 8:22 AM, ronkar said:

Well the deed-in-lieu. Also on mine inquiries. 

You can get a mortgage with six hundred ninety one million four hundred thirty-eight thousand two hundred and seventeen inquiries.  

 

You may have to write a one-sentence explanation about any of them that are particularly recent (relative to the date of your mortgage app).

 

It's new debt that may not yet be on your credit reports that they are concerned about.  The inquiries themselves are meaningless.

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Hi ronkar,

 

I'm a mortgage banker, and the waiting period to obtain a home mortgage varies, depending on what agency you're obtaining your mortgage from.

 

The USDA waiting period after a foreclosure, short sale or deed in lieu is 3 years.

 

The FHA minimum waiting period is 2 years.

 

The waiting period for a Conventional home loan, either Fannie Mae or Freddie Mac, was previously 4 years, but both Fannie & Freddie reduced the waiting period from 4 years down to 2 years, as long as the foreclosure, short sale or deed in lieu was an extenuating circumstance, caused by a "Significant Derogatory Event". For example, if you can document that an illness/death, job layoff, or a divorce caused a significant decrease in income, that would qualify as a "Significant Derogatory Event", and you could possibly qualify to reduce the waiting period from 4 to 2 years.

 

Also, the USDA is an attractive option because they allow 0% down payments, but even though the FHA minimum down is 3.5%, the FHA allows for 100% of the 3.5% down payment to come from DAP (down payment assistance) grants. Depending on where you live, I have resources for local and national down payment assistance programs. 

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seanote, USDA also has reduction in waiting period if you can justify the DIL with a significant derogatory event. Source: I closed on a USDA loan less than 3 years after a DIL, but it required manual underwriting and a LOT of legwork by my mortgage officer and myself.

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Thanks. I live in N.C. it will be 3 years April 2020. I would love information on down payment assistance.


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