Closing in jeopardy after 6 pt. FICO drop

I’m under contract for a house in Oregon with a rate locked in scheduled to close on May 27th. I was conditionally approved for a 30 yr fixed conforming loan, but am no longer approved after the lender pulled my credit report again and my middle FICO score dropped from 700 to 694.

My broker says my score dropped because of credit checks from a different broker and a new Khols card application, and that no one will give me a conventional loan until my middle score is 699+ due to Freddie and Fannie’s automated underwriting process. She also mentioned that my chapter 13 which was discharged 3+ years ago could be causing the denial, although technically it’s been long enough.

The broker is checking about switching to an FHA loan that accepts scores below 700, but I don’t have enough cash to cover the difference in max loan amounts.

We’ve already paid for the inspection, the appraisal happened today, and I’m concerned about my earnest money if this falls through.

Any suggestions on what I could do to save this purchase? I’ve already paid my credit cards down to $0, and my only other debt is $10k in student loans.

submitted by /u/misternutz
[link] [comments]

I’m under contract for a house in Oregon with a rate locked in scheduled to close on May 27th. I was conditionally approved for a 30 yr fixed conforming loan, but am no longer approved after the lender pulled my credit report again and my middle FICO score dropped from 700 to 694. My broker says my score dropped because of credit checks from a different broker and a new Khols card application, and that no one will give me a conventional loan until my middle score is 699+ due to Freddie and Fannie’s automated underwriting process. She also mentioned that my chapter 13 which was discharged 3+ years ago could be causing the denial, although technically it’s been long enough. The broker is checking about switching to an FHA loan that accepts scores below 700, but I don’t have enough cash to cover the difference in max loan amounts. We’ve already paid for the inspection, the appraisal happened today, and I’m concerned about my earnest money if this falls through. Any suggestions on what I could do to save this purchase? I’ve already paid my credit cards down to $0, and my only other debt is $10k in student loans. submitted by /u/misternutz [link] [comments]

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