Credit Score in Durham>Question Details

Ceecee10, Home Buyer in Raleigh, NC

Credit score is 627. Are banks still providing FHA loans with 3.5% down with this score? We live in Durham, NC. Thanks!

Asked by Ceecee10, Raleigh, NC Wed May 25, 2011

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19
Yes. We help people who have low credit scores and match you with a lender that has a loan product for you. 580 credit score needed for FHA and 620 for conventional with 3% down
3 votes Thank Flag Link Tue Oct 22, 2013
Absolutely Do these all day long
1 vote Thank Flag Link Tue Oct 22, 2013
http://www.sandiegohomeandloan.info
Flag Tue Oct 22, 2013
You should be eligable for an FHA loan with your credit if your debt to income ratio meets criteria.

Robert Tyler
Diamonds Real Estate, Inc.
239-850-2629

http://www.FlaLuxuryLiving.com
1 vote Thank Flag Link Tue Oct 4, 2011
And our rate is the same, underwriting time the same
Web Reference: http://raleighhomeloans.org
1 vote Thank Flag Link Thu Sep 29, 2011
We can do this at 3.5% down on a 600 FICO all day long. My NC office is in Raleigh 2501 Blue Ridge Rd (Atrium building)
Web Reference: http://raleighhomeloans.org
1 vote Thank Flag Link Thu Sep 29, 2011
Yes, but be careful with any new purchases, pay down debt. You are on the borderline!
1 vote Thank Flag Link Thu Sep 29, 2011
As posted by others, there are programs which will allow for financing below the standard Fannie/Freddie 640 FICO score, but, beware! Rates tends to be higher, the underwriting is far more stringent, and the loan process will take far longer. Our company has an in-house credit advisor who will propose how to increase your score to 640 or higher. Depending upon your credit circumstance, this process could be 3-4 days or months; certainly worth contemplating in order to obtain the best/lowest interest rate, and the cost is credited back to you when you close the loan with me. FHA with minimum 3.5% down payment will carry MI - another option - if you have 5% of your own funds, then a conventional loan will allow financing the MI premium into the loan amount, thus avoiding monthly MI and typically a lower monthly payment. This option does require at least a 660 FICO. Both the investor and the MI provider must approve the loan - each have their own set of guidelines.
Always compare your scenario with at least 3 lenders, but, try to avoid having your credit run numerous times.
Happy to help!
1 vote Thank Flag Link Thu May 26, 2011
Yes, I am seeing people with 627 scores being approved. Give me a call and I will be happy to help anyway I can. 919-219-4312. Thanks, Joe
Web Reference: http://www.mfgrtp.com
1 vote Thank Flag Link Wed May 25, 2011
There are FHA options available at that credit score, but as Whitney mentioned there are other options available as well. Your best bet is to talk to several local loan officers and get there best options. If I can help you with sorting through your options let me know.
1 vote Thank Flag Link Wed May 25, 2011
In Michigan I'm seeing 640 as the low score right now, but most banks are willing to work with you and get you on the right track, but could take a couple of months.
1 vote Thank Flag Link Wed May 25, 2011
Yes, you can get and FHA loan but you can do much better. With a 627 score you can put down just 3% and more importantly, AVOID MORTGAGE INSURANCE! I work with at least three lenders that can offer that opportunity. There are also two loans that you can get to cover your down payment at a reduced interest rate. Feel free to email me with questions at Whitney@SuccessSells.com.
1 vote Thank Flag Link Wed May 25, 2011
Hello Ceecee
Call Audra with Starkey Mortgage she is fantastic 919 491 8369
tell her i gave you the number.
Michael
1 vote Thank Flag Link Wed May 25, 2011
Ceecee,

I just read your comment about using Quicken Loan, my advice would be do not do this. Do yourself a huge favor and work with a good, reputable local lender. I've been doing this for more than 20 years and I have never had a client who has used an Internet Loan company be happy when the day was done. You want to work with someone whose office you can walk into and who will explain to you that if you take certain types of loans you're going to be paying a real penalty in terms of interest rate or loan fees.

Again, feel free to contact me through my profile if you'd like some names and numbers of local lenders I know to be honest, professional and hyper competitive in terms of rates. I hate seeing people get taken advantage of and if there's one thing you should take away from the financial meltdown, its that banks are not to be trusted.
1 vote Thank Flag Link Wed May 25, 2011
For an FHA loan you need a minimum score of 640, however as close as you are I know of a couple of local lenders who would work with you free of charge to help you get your score up to 640. I also know of a few local lenders who are approved to work with the NCHomes program which will accept a score of 620. slightly different but essentially similar to the FHA loan program.

So long answer short- Yes.

If you'd be interested in speaking to any of these lenders feel free to contact me directly through my profile and I'd be happy to give you their names and numbers. I live in Durham know it well and specialize in helping first time buyers like yourself. If I can be of any assistance I'd be happy to help you.

Good Luck.
1 vote Thank Flag Link Wed May 25, 2011
Thank you for your quick replies. Our debt to income ratio is below 40%. Presently, we have a six figure income, but had credit setbacks due to past unemployment. We Just wanted some quick info before we started contacting banks about a FHA loan. We didn't want lenders to hard pull our credit and the 627 turn into a 619. We both are scared of rejection :-) Oh well, you never know until you try..Thanks a lot everyone. If you know any banks that work with a 620 please let us know. We are going to check out Quicken Loan as well. We heard they provide FHA loans for people with a 620 credit score.
1 vote Thank Flag Link Wed May 25, 2011
Ceecee - I can refer you to some lenders who could help you but none of my FHA programs would accept your present score. I have a VA program that would. I could help you with FHA or conventional financing if you had a higher down payment.

Lenders look at more than just the score on a credit report - they review what is keeping your score from being higher, the timeliness of your payments, etc., so finding a lender with a program that accepts your score is just the first step.

Best wishes and hapy househunting!

Tom
1 vote Thank Flag Link Wed May 25, 2011
A 627 credit score is one step better than poor. There are so many interesting things going on in the market for people who fall into this category. Mainly because of the back log of REO properties.

You can still get credit on certain types of homes, but be prepared for some scrutiny from the bank regarding the appraised value, and don't pay an application fee until you have a Good Faith Estimate on closing costs.

Please make sure you can afford the home, and have a reasonable rainy day fund should another negative event happen AGAIN.
1 vote Thank Flag Link Wed May 25, 2011
Yes they are with a few caveats, of course. Contact me directly and I can refer you to a lender who may very well be able to help you.
Web Reference: http://www.TimHock.com
1 vote Thank Flag Link Wed May 25, 2011
FHA loans are not based on Credit Score, but rather your Income to Debt ratio. You need to talk to a good bank or Mortgage Broker for straight info.
1 vote Thank Flag Link Wed May 25, 2011
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