I’ll get right to it, DH and I are building and the price of the house plus land puts us in the Jumbo arena in FL. We stupidly applied for a loan with a lender without running our reports and scores because we had no idea what we were getting into. Turns out my scores fared much better than his (mid FICO4 of 724), BUT I’m a SAHM with no income so it doesn’t matter. Also, we need a mid-score of a 720. He didn’t have that. His reports were mindblowing! They had FOUR different BOA CC accounts with numerous 30, 60, and 90 day delinquents. He only has ever had ONE BOA CC. That was easy to remove. There were AU accounts with lates and med collections that belonged to his dad (same name, he’s a III and his dad is a Jr.). Anyway, we cleaned up everything and are waiting on the final updates but his scores are already a few points shy of 720 as of now. Here’s the catch: he had a whopping balance on one of his CC’s that we couldn’t make a dent in without sabotaging our DP and Closing costs. I opened up 2 new TL’s and did BT’s to pay it off. I figured I would take the hit on scores since his DTI qualifies him by himself (again, my income is zero) so I really don’t need to be on the mortgage. The only way we could come up with the additional funds for a DP is to sell our current home and use proceeds but we really don’t want to do that (we will if we have to). We’ve already put down 5% and have the remaining 5% plus closing costs. My questions are as follows:
If we go back to the same lender and re-apply with just him on the application and scores above 720, could they deny us because we moved the balance to my credit cards, even if I’m not on the application? How does that work when only one spouse has income and qualifies on their own? We are in FL.
Also, Jumbo Construction Perm loans are very hard to find these days. Most lenders require scores of 720+ AND 20% down. The lender we were working with seems to be the only local lender that offers a 90% jumbo CP loan. I could kick myself for not doing my homework before!! Do any of you have any suggestions on other lenders? Do I have to use local lenders only? Thanks in advance for all of your help!