Credit Score in Chicago>Question Details

Jody Kelly, Real Estate Pro in Oak Lawn, IL

What credit scores do you have to have to qualify for a 5% down conventional loan for a home that needs to ne rehabbed, in lieu of using a 203k FHA?

Asked by Jody Kelly, Oak Lawn, IL Tue Feb 16, 2010

Help the community by answering this question:

Answers

4
Jonathan Blackwell’s answer
The Homestyle requires a 680+ for an owner occupant. However, anything under 720 and I'd recommend a 203k typically. The Homestyle is cheaper, more flexible and easier to close than a FHA 203K though, if you qualify you need to explore that option. Higher loan limits, no restrictions on repair, no upfront MIP like FHA... If your lender doesn't offer it you need to check out one that does.
0 votes Thank Flag Link Thu Aug 12, 2010
BEST ANSWER
Jody,

The only renovation loan currently available BESIDES The fha203k is the Fannie Mae HomePath Renovation loan, which IS availble with 5% down, BUT it is limited to Fannie Mae Foreclosures listed on their website at http://www.homepath.com. You can, however, go down to a 660 score.

I do know of some individual investors who are doing construction and rehab loans, but the credit score would need to be perfect, (740+) and the down payment would need to be about 30%

Call with any questions.

Matt Bukovy
Wintrust Mortgage

773-416-7107
mbukovy@wintrustmortgage.com
0 votes Thank Flag Link Tue Feb 16, 2010
The credit scores would need to be the same as with any other conventional loan (i.e There would be rate hits for anything lower than 740ish).

Thanks

David Cruickshank
0 votes Thank Flag Link Tue Feb 16, 2010
Jody,

There is a program called Fannie Mae Homestyle but very few lenders offer the program. It is a conventional loan so the down payment amount would likely be 10% if it is the borrowers primary home and 20-25% for investors.

If you do decide to use the 203k loan then let me know and I can help you. Read my website at http://www.203kloanschicago.com.

Good luck!!!
Sincerely,

David P. Cruickshank
Ardain Mortgage Corp
847-354-5455
davidc@ardain.com
http://www.davidpcruickshank.com
0 votes Thank Flag Link Tue Feb 16, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer