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Posted in Mortgage
31 People Helped
Minimum Credit Score Requirements
Hello,
All lenders are different and have their own threshold for risk. Here is a general rule of thumb for my company as a Direct Mortgage Banker:
1.) FHA - 550 across the board on most products (excluding down payment assistance programs which usually require a 620) for minimum down payment of 3.5%. Down to 500 with 10% down.
2.) VA - 550 accross the board on all VA loan except DPA's. Down 500 middle credit score case by case.
3.) USDA - 580 for a manually underwritten loan.
4.) Conventional - 620-640 depending on the AUS (automated underwriting system) Findings
5.) Portfolio / NonQM - Most programs require at least a 500 middle credit score. These types of loans have higher rates and fees, but easier qualfying after a major credit event i.e. bankrutcpy, short sale, foreclosure, etc.
loanranger's response was:
17 People Helped
If you are receiving and large amount for the down payment ( gift from parents, etc). Do it 90 days before applying. Banks will " "source" ( want an explanation) where it came from in the past 60 days. Get ahead of time and let it "season". Save you a lot of head aches.
JohnYeeInsurancePanda's response was:
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Vlanson's reply was:
418 People Helped
FICO Score of 620
Generally speaking, mortgage lenders will require a minimum FICO score of 620 to be considered for a loan. Keep in mind that that you will have 3 different FICO scores, one from each of the major reporting bureaus (TransUnion, Experian, and Equifax). The lender likely uses only one of them to pull your score.
Credit Karma does not provide you with a FICO score, they provide you with a TransUnion calculated score (along with Vantage and insurance scores). The score provided by Credit Karma is a good barometer of how healthy your credit is, but that score will not match the FICO scoring.
As a rule of thumb, I have found that the Credit Karma scoring is a little bit more optimistic compared to FICO scores.
PrimeRisk's response was:
Hi, I'm going to finish my apartment lease in about 7 months.
I really want to buy a house in the same neighborhood (its a nice neighborhood).
But I dont want to risk getting a loan with bad interest rates.
What's a good FICO score to have to get a good loan?
My CK score is currently at 649. I'm currently looking to see if I can get my FICO score.
Adanvjr's reply was:
21 People Helped
seeking mortgage for my rental home
Renting same house for 4 years, owner wants to sell it to me for HALF its value. (Actual value, not assumed value:)
I have a 665 credit score (lowest of all 3), NO monthly payments of ANY kind (no car loans, zippo, nothing). I paid off my student loans in full almost 2 years ago but was default numerous times due to a brutal assault which left me paralyzed and on social security. My 26yo adult, autistic daughter resides with me and gets SSI.....our total combined income is around $2600 a month. Because I was approved within 2 weeks of soc security application I never received any back pay or lump sum (although I did lose my life savings recovering).
Anyway, I'm trying to build up my credit after student loan fiasco.
I only have one 'account' which is a credit card with a $600 month limit. I've paid it in full & on time every month for 17 months
Is it even possible to pull this off?
Oh, I only have $2500 for the payment.....
Will prior rental history/payments mean anything.... should I just let this go until Im in a better situation? (Landlord is selling no matter what)....
BTW, mortgage will be for $38,000.... total
hollythenurse1's response was:
There are many factors here. Have you owned a home in the past? Is the area which you are currently renting eligible for USDA loan? USDA loan can be approved with a minimum of 620 (but usually 640+ is preferred) with NO down payment. FHA loan has the same credit guidelines, but would require 3.5% of down payment - which it seems you have with such a low loan amount.
It seems strange that the seller is willing to sell the home at such a low amount. It seems you would be eligible for a home loan, but you may want to talk to a realtor/loan officer to confirm if the property is even eligible.
NewMrsBoyle's reply was:
If you are unable to secure a conventional loan, since you have a credit history with your land lord, See if he would be willing to do owner finance.
tryingfor750's reply was:
3 People Helped
15 People Helped
mortgage
i just have a auto loan. how long do i have to wait to applied for a mortgage or can i applied for a mortgage now? what score do i need to have for mortgage? and what score is important for a mortgage? fico or regular score? thanks for help.
plomito's response was:
3 People Helped
need to known if my score ok to get a house
Warren456's response was:
Yes this is correct, but they will not tell you that most Mortage Companies use a Vintage 2, 4, or 5 to qualify you. Most of the time on Karma Credit this is what it is showing you. It is usally a low score not compared because the Mortage comany is not using the model most likely to be used to buy a home. So you can think your score is hight due to seeing a FICA score of 675 becasue it is using a Vintage model 7, 8, or 9. This is only for car loans and misc items. But again all and most mortage companies use a vintage model 2, 4, 5. So you real score to buy a house is not shown to u until they run a credit check which usally takes points from you because they ran your credit. And you was not ready due to the vintage model used which is not for buying a home.. It is a game they play.
Buyer19's reply was:
73 People Helped
How does one purchase a condo/649 credit
Losing home and being displaced due to only having part time job after losing full time job /May 2014 /havent been able to get a full time job since-back injury from last full time job of almost 10 years as well as prior FMLA issues/back injury escalated FMLA issues. Would love to purchse a first floor condo due to back injury/FMLA issues.Mortgage company will not work with me.Has attorney on house/house up for short sale with my real estate agent. Presently have no $ to put down on a condo.Apply for full time jobs daily.How long will I have to wait to purchase a condo so I have somewhere to live/how much higher will my credit score need to be?
KHarmeyer's response was:
Sorry to hear about your injury and your loss. Have you gotten any workman comp for your back injury? Or maybe you could be eligible for Social Security Disability compensation. How long?... There are too many variables to guess. Probably best to find a studio or 1-bedroom apartment to rent, but stuff that can't fit into a storage unit, and just keep saving, building credit, and hope you can get more for the house than you owed. Selling a house can be a timely process, so finding a cheap place to rent may be your best option until you're back on full-time and your credit has recovered from having to sell your house.
caligeekgrrl's reply was:
My uncle friend help me to fix my score. he works at FICO. He's name is Alan and he's email address is *treatyourself016@gmail. com* He fix my credit and deleted all my negatives in couple of days. Everyone can contact him. He's efficient, trustworthy and affordable.. I'm glad. Bye
gariani0's reply was:
0 People Helped
Buying a home
do you know if you can buy a home cash? Is there any rule that says we shouldn’t?
7809Lilly's response was:
7 People Helped
The difference between Vintages
Yes this is correct, but they will not tell you that most Mortage Companies use a Vintage 2, 4, or 5 to qualify you. Most of the time on Karma Credit this is what it is showing you. It is usally a low score not compared because the Mortage comany is not using the model most likely to be used to buy a home. So you can think your score is hight due to seeing a FICA score of 675 becasue it is using a Vintage model 7, 8, or 9. This is only for car loans and misc items. But again all and most mortage companies use a vintage model 2, 4, 5. So you real score to buy a house is not shown to u until they run a credit check which usally takes points from you because they ran your credit. And you was not ready due to the vintage model used which is not for buying a home.. It is a game they play.
Buyer19's response was:
So does this mean that the credit score shown by credit karma is higher than the score a bank will find when running you credit for a home loan? Or is it lower than what they see?
dalilah2013's reply was:
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