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My wife and I are building a home with Ryan Homes in Orlando. We first entered the contract in April 2010 and at that time, we were qualified (credit, income, etc.) and everything was find. Well, we are 3 days before closing now and all of a sudden they said that they ran my credit report and found that I was 30/60 days late in July and August on one of my credit cards. This dropped my score below 600 and disqualified us for the FHA loan that we were originally getting. I called the credit card company and asked for forgiveness and they said they do not do that. I then called back and spoke to someone else and they said that they will approach management and see if they can let it happen due to the severity of the problem. Please give me some ideas as to how to get this removed or to help with this house! It is our dreamhome that we watched go up, we don’t want to see someone else move into it! Any ideas??
Ok. I didn’t get into details… I put all of my cards on auto-draft when my wife and I set up for this mortgage. This was the only card that could not go through BoA so I called the company to set it up. Apparently it did not happen. We make well over $ 100k combined and her credit is spotless, mine is now dinged. The FHA loan has a minimum credit score and I have gone below that. I am thinking about paying off all of our debt, approx 15k which will hopefully shoot my score up significantly. Any thoughts now?? I have always paid my bills on time, this was one mistake.

6 Thoughts on Mortgage denied 3 days before closing on custom home!?!?
  1. Reply
    Caveat Emptor
    February 12, 2014 at 1:34 am

    You’ll probably have better luck trying to sweet-talk the mortgage lender rather than your credit card lender. If you were late, you were late. Explain why – i.e., you screwed up setting up your automatic payments. If you’ve squared things now, they might buy that.

  2. Reply
    February 12, 2014 at 2:11 am

    If you weren’t able to pay your credit card bill, you’re not ready for a mortgage and this is for the best. What were you thinking, honestly? They tell you they’ll run it again before signing!

  3. Reply
    Ryan M
    February 12, 2014 at 2:41 am

    WOW did you ever screw up big!! The bank did the proper thing believe it or not. As for getting it “removed” it is actually against the Fair Credit Act for a creditor to remove ACCURATE information from your credit report.

  4. Reply
    stan c
    February 12, 2014 at 3:02 am

    A credit score is based on a 12 month activity. Just get the account up to date. You’ll probably have to wait 60 days and then ask if they’ll re-consider the mortgage. If not, call a mortgage broker and just explain what happened.

  5. Reply
    February 12, 2014 at 3:33 am

    You cannot have it removed. Do not waste time trying.

    Paying off your debt will help, but not until it is reported, which could take two months. There is no way to fix your credit in only 3 days.

  6. Reply
    February 12, 2014 at 3:53 am

    FHA requires 12 months of spotless credit and also minimum scores.

    IF you can PROVE that you set up auto payment, maybe with a confirmation number you hopefully wrote down, and that firm did not actually do it, you stand a chance of getting the loan.

    Ask your loan officer what proof you’ll need to challenge the late payments using “rapid rescore” service via the loan officer’s credit report vendor.

    Rapid Rescore service takes 3-5 business days to alter the credit (once you have adequate proof in hamd), but the credit report vendor will be the one to tell you what proof the Credit Bureaus will require and whether you stand a chance of getting done what needs to happen.

    Possibly with that same proof, going to the loan underwriter with it may get you a loan even if the rescore service does not work.

    Good luck.

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