This is a sample. Names, accounts, and numbers are fictitious. Your real report will be tailored to your credit and goals. ← Back to overview
RateDirect
Prepared by Jennifer Kirby · NMLS #2672337
Report date: Apr 15, 2026
For: Sample Borrower

Your Mortgage Readiness Report

A snapshot of where you stand today, exactly what you qualify for, and the highest-impact things you can do to improve your position - in the order I'd actually recommend.

Executive summary

Mortgage mid-score
637
Bureau used: TUC
Top purchase price now
$345,988
Best program: FHA
After plan (90 days)
$345,988
Projected mid-score 737
Your top 3 actions, ranked by impact:
  1. Your overall credit card utilization is 94% - estimated +60 to +120 points
  2. You have one or more accounts over their credit limit - estimated +10 to +30 points
  3. 18 credit inquiries in the last 12 months is high - estimated +0 to +15 points

Your credit scores

Equifax (FICO 5)
641
Experian (FICO 2)
628
TransUnion (FICO 4)
637
Qualifying mid

Scores shown are FICO mortgage scoring models (FICO 5 / FICO 2 / FICO 4) used by mortgage lenders. These differ from consumer-facing scores you may have seen on Credit Karma, your credit card statements, or other free services, which typically use VantageScore or FICO 8.

What's hurting your score most

  • proportion of balances to credit limits too high on bank cards
  • length of time accounts have been established
  • too many inquiries last 12 months
  • proportion of balances to credit limits is too high
  • proportion of balance to limit is too high on bank revolving
  • too many inquiries in last 12 months

Your personalized action plan

Following this plan, our conservative estimate is +48 to +100 points to your mid-score over the next 30 to 90 days. 2 of these actions can be accelerated via rapid rescore (3-5 business days after paydown reports).

Your overall credit card utilization is 94%

Rapid rescoreCritical

Credit utilization (balances divided by limits) is the second-most-impactful FICO factor, behind only payment history. Your current revolving utilization is 94%. Getting it below 9% on every card typically produces the largest single jump in your mortgage score.

Action: Pay down revolving balances so each card reports at or below 9% of its credit limit. Approximate total paydown needed: $49,431.3.
Estimated impact: +60 to +120 points · Timeline: ~14 days
AccountCurrentLimitTargetPaydown
CAPITAL ONE BANK USA NA(rapid)$2,850$3,500$315$2,535
CAPITAL ONE BANK USA NA(rapid)$1,980$2,500$225$1,755
CHASE CARD SERVICES(rapid)$4,120$4,500$405$3,715
DISCOVER FINANCIAL SERVICES(rapid)$3,480$3,800$342$3,138
AMERICAN EXPRESS(rapid)$2,850$5,000$450$2,400
BANK OF AMERICA(rapid)$4,800$6,000$540$4,260
CITICARDS(rapid)$2,950$4,000$360$2,590
SAMS CLUB / SYNCB$3,606$3,530$318$3,288
WELLS FARGO BANK(rapid)$28,450$30,000$2,700$25,750

You have one or more accounts over their credit limit

Critical

When a credit card balance exceeds its credit limit, the credit scoring models treat it as a serious red flag. Bringing every card under its limit immediately is the single highest-impact thing you can do right now.

Action: Pay every over-limit card below its credit limit before your next statement closes. Even getting under the limit (not zero) typically recovers 10 to 30 points.
Estimated impact: +10 to +30 points · Timeline: ~35 days
AccountCurrentLimitTargetPaydown
SAMS CLUB / SYNCB$3,606$3,530$1,024$2,582

18 credit inquiries in the last 12 months is high

High impact

Each "hard" credit inquiry from a new account application can knock a few points off your score, and a high cluster of inquiries signals risk to scoring models. Each inquiry stays on file for 24 months but the score impact fades after 12.

Action: Avoid applying for new credit cards, store cards, or financing for the next 6 months. The inquiries already on file will keep aging out month by month.
Estimated impact: +0 to +15 points · Timeline: ~180 days

9 cards are reporting above 29% utilization

Rapid rescoreMedium impact

FICO looks at individual-card utilization in addition to overall utilization. Even if your total utilization is low, any single card above 29% can drag your score down.

Action: Pay each flagged card to below 29% of its credit limit. The specific target balance per card is shown below.
Estimated impact: +5 to +20 points · Timeline: ~14 days
AccountCurrentLimitTargetPaydown
CAPITAL ONE BANK USA NA(rapid)$2,850$3,500$980$1,870
CAPITAL ONE BANK USA NA(rapid)$1,980$2,500$700$1,280
CHASE CARD SERVICES(rapid)$4,120$4,500$1,260$2,860
DISCOVER FINANCIAL SERVICES(rapid)$3,480$3,800$1,064$2,416
AMERICAN EXPRESS(rapid)$2,850$5,000$1,400$1,450
BANK OF AMERICA(rapid)$4,800$6,000$1,680$3,120
CITICARDS(rapid)$2,950$4,000$1,120$1,830
SAMS CLUB / SYNCB$3,606$3,530$988$2,618
WELLS FARGO BANK(rapid)$28,450$30,000$8,400$20,050

Use this order when paying down credit cards

Good to know

How you sequence paydown matters. FICO penalizes the number of accounts carrying a balance as a separate factor, so the optimal order is: (1) pay one small-balance card to zero first, (2) then pay remaining cards down to under 9% in order of highest current utilization, (3) keep one or two cards reporting a small balance (1-5%) rather than zero on every card. Some mortgage scoring models reportedly dip a few points if every revolver reports $0.

Action: Follow the order above when allocating funds toward paydown.
Estimated impact: +5 to +15 points · Timeline: ~45 days

Some older collections are approaching the 7-year fall-off date

Good to know

Under FCRA, most negative items must be removed 7 years after the date of first delinquency. Paying or settling a near-fall-off item can sometimes reset the reporting date on some bureaus, hurting your score. Sometimes the best move is to do nothing and wait.

Action: Do not pay these without consulting us. We will check the exact fall-off dates and decide whether to leave them, dispute them, or negotiate pay-for-delete.
AccountCurrentLimitTargetPaydown
AMERICAN EXPRESS$2,850$2,850$0

1 authorized-user account on file

Good to know

Authorized user accounts can be excluded by mortgage underwriting (rules vary by program and lender). They also belong to someone else, so any changes the account holder makes affect your score, not theirs.

Action: No action required unless underwriting flags them. We will let you know if any need to be removed before close.
AccountCurrentLimitTargetPaydown
LOWES / SYNCB$0$5,000$0$0

You have an existing mortgage on file

Good to know

We can also look at whether refinancing your current mortgage makes sense alongside any purchase plans. If rates have moved or you have equity to pull, the refi math is worth running.

Action: Ask us to run a free refi analysis on your existing loan during your consult.
AccountCurrentLimitTargetPaydown
FREEDOM MORTGAGE CORP$518,486$518,486$0

What you can afford

Each program below is shown at TRUE agency minimums - no lender overlays. These are real eligibility paths today, not retail-bank guesses.

FHA

FHA loans are government-insured and have the most permissive credit and DTI requirements of any standard mortgage program. Most lenders impose a 620 or 640 overlay - we lend to the true HUD minimum of 500.
Eligible now

Most lenders cap FHA at 620 or 640. We lend to HUD's actual 500 minimum.

Max price
$345,988
Down payment
$12,110
Monthly PITI
$2,920
Rate range
6.75% – 7.50%
Program requirements
  • 500-579 FICO: 90% LTV (10% down)
  • 580+ FICO: 96.5% LTV (3.5% down)
  • AUS-driven DTI; 56.99%+ possible with compensating factors
  • 2 years after Chapter 7 discharge / 1 year Chapter 13 with court approval
  • 3 years after foreclosure
  • County loan limits apply

USDA

USDA Rural Development loans are 100% financing with no down payment and below-market rates, for properties in eligible rural and suburban areas. Income limits apply (115% of area median household income).
Eligible now
Max price
$270,128
Down payment
$0
Monthly PITI
$2,446
Rate range
7.50% – 8.25%
Compensating factors required: Manual underwrite required below 640 FICO
Program requirements
  • 640+ FICO: streamlined GUS approval
  • 580-639 FICO: manual underwrite with compensating factors
  • Property must be in a USDA-eligible area (check eligibility.sc.egov.usda.gov)
  • Household income at or below 115% of AMI
  • Upfront fee 1.0% (financed), annual fee 0.35%
  • 3 years after Chapter 7 / 1 year Chapter 13

Conventional (Fannie / Freddie)

Conventional loans backed by Fannie Mae and Freddie Mac. Up to 97% LTV for first-time homebuyers via HomeReady or Home Possible. Best deal once you are 740+, but very competitive at 680+.
Eligible now
Max price
$307,564
Down payment
$9,227
Monthly PITI
$2,763
Rate range
7.50% – 8.25%
Program requirements
  • 620 minimum (agency floor - cannot go lower)
  • DU/LPA approve/eligible with DTI up to 50%
  • PMI required above 80% LTV; removable at 78% original value
  • Conforming loan limit applies (varies by county)
  • 4 years after Chapter 7 / 2 years Chapter 13 / 7 years after foreclosure (3 with extenuating circumstances)
  • Income limits on HomeReady / Home Possible (80% AMI)

Non-QM Bank Statement (Self-Employed)

For self-employed borrowers whose tax returns understate true cash flow. We qualify from 12 or 24 months of personal or business bank statements rather than tax returns.
Eligible now
Max price
$133,000
Down payment
$13,300
Monthly PITI
$3,158
Rate range
9.25% – 10.75%
Program requirements
  • 600+ FICO (vs. typical 660+ overlay)
  • 12 or 24 months personal or business bank statements
  • Up to 90% LTV
  • DTI calculated from deposits

Non-QM 1099-Only

Qualify from 1099 income alone (no tax returns required). Good fit for independent contractors, gig-economy workers, and freelancers whose return shows large write-offs.
Eligible now
Max price
$88,667
Down payment
$13,300
Monthly PITI
$3,158
Rate range
8.50% – 9.75%
Program requirements
  • 620+ FICO
  • Most recent 1099(s) and YTD income statement
  • Up to 85% LTV

Non-QM Asset Depletion

Qualify from your liquid asset balance, amortized as if it were income over the loan term. Strong fit for retirees or asset-rich, income-light borrowers.
Eligible now
Max price
$66,500
Down payment
$13,300
Monthly PITI
$3,087
Rate range
8.50% – 9.75%
Program requirements
  • 620+ FICO
  • Liquid assets in investment, retirement, or savings accounts
  • Up to 80% LTV

Non-QM ITIN

Mortgages for borrowers using an ITIN instead of a Social Security Number. Up to 80% LTV.
Eligible now
Max price
$66,500
Down payment
$13,300
Monthly PITI
$3,158
Rate range
9.00% – 10.50%
Program requirements
  • 600+ FICO
  • Valid ITIN
  • Up to 80% LTV
  • DPA typically not available

Jumbo

For loan amounts above the conforming limit. Generally requires stronger reserves and tighter DTI.
Eligible at 737
Max price
$133,000
Down payment
$13,300
Monthly PITI
$2,604
Rate range
What's blocking you today: FICO must be at least 660 (yours: 637)
Program requirements
  • 660+ FICO (some products start at 680)
  • 6-12 months reserves
  • Loan amount above county conforming limit

Rate estimates above are illustrative ranges based on current wholesale market pricing and your credit profile. Your actual rate and APR depend on day-of-pricing, lender, loan-level price adjustments, lock period, loan amount, occupancy, property type, and other underwriting factors. This is not a commitment to lend, an offer to extend credit, or a Loan Estimate as defined by TILA-RESPA.

Down payment assistance you may qualify for

Programs below match your state, score, and homebuyer profile. Final eligibility depends on income, property type, and homebuyer education completion - we'll confirm during your consult.

NextHome

Housing New Mexico (MFA) · New Mexico

Down payment and closing cost assistance paired with a MFA first mortgage; no first-time homebuyer requirement.

Forgivable

FHA Down Payment Assistance

FHA Down Payment Assistance · NM

2.5%, 3.5%, 5.0% of purchase price

Up to 5% assistance for down payment and/or closing costs

RepayableSecond

FHA Down Payment Assistance

FHA Down Payment Assistance · NM

3.5%, 5.0% of purchase price

Up to 5% assistance for down payment and/or closing costs

RepayableSecond

Chenoa Fund DPA Edge (FHA, Forgivable)

CBC Mortgage Agency · NM

3.5% of purchase price

Forgivable down payment assistance for moderate-income buyers

Forgivable

Chenoa Fund DPA (FHA, Repayable)

CBC Mortgage Agency · NM

3.5%, 5.0% of purchase price

No income limit DPA option for FHA buyers

RepayableSecond

Essex DPA Grant (FHA, No-Lien Grant)

Essex Mortgage · NM

3.5%, 5.0% of purchase price

True grant - no second lien, no payment, no recapture

Grant

Essex DPA Grant (Conventional)

Essex Mortgage · NM

3.0% of purchase price

Conventional grant pairing for HomeReady and Home Possible

Grant

HomeReady $2,500 Credit

Fannie Mae · NM

Fannie Mae credit for very-low-income HomeReady buyers

Grant

Next steps

  1. Book a free 15-minute strategy call - email jennifer.kirby@loanfactory.com to schedule
  2. Start your application at ratedirect.my1003app.com (takes about 10 minutes; secure SSL)
  3. Work through your action plan above. Send proof of paydown (statements showing the new lower balance) and we'll initiate rapid rescore where available.

Appendix: account summary

Total accounts
53
Open accounts
17
Total balance
$634,166
Revolving util.
94.0%
Open mortgages
1
Inquiries (12mo)
18
Oldest account
Jun 1, 2008
AU accounts
1

Jennifer Kirby - NMLS #2672337 · Loan Factory, Inc. | NMLS #320841 | Equal Housing Opportunity · Licensed in NM

Important: This report is part of a mortgage pre-qualification consultation. It is not credit repair services. We do not charge for credit consultation. Estimated score impacts are based on general FICO scoring principles and are not guaranteed. Your actual results will vary based on your unique credit profile and the timing of creditor reporting.

The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act.

Credit was pulled with your authorization as part of your mortgage application. You have the right to a free annual credit report at annualcreditreport.com, and to dispute inaccurate information directly with the credit bureaus under the Fair Credit Reporting Act (15 U.S.C. § 1681).

We treat your personal financial information as confidential. Information you provide and information we collect from credit reports is used solely to evaluate your mortgage eligibility and is shared only with service providers necessary to process your loan. See our privacy policy at ratedirect.net/privacy for details.

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