Financing in Manheim>Question Details

Rwdfinch, Home Buyer in Manheim, PA

I live in Pa., I would like to take out a loan on my house to do some home improvements and also to use as a down payment on a multi-unit building.

Asked by Rwdfinch, Manheim, PA Sun Apr 18, 2010

My median credit score is 687, my house is paid for, and it does not qualify for FHA financing rules. The appraised value of my home was $165,000 last year, and I want to borrow up to $75,000. Any suggestions?

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Hey Rwdfinch,

I am assuming your home will not qualify FHA due to the septic/well distance or some other FHA formality. Regardless of that, a conventional loan at less than 50% ltv with a 687 fico should be more than sufficent. If you want me to check out the other qualifications (income) please feel free to contact me.

Thank you,
0 votes Thank Flag Link Sun Apr 18, 2010
RWDfinch, I just checked, you can go up to 60% of the value of your home without having to worry about an adjustment for your credit score. I would just go that route.
0 votes Thank Flag Link Sun Apr 18, 2010
I agree with Rudy. You should have no problems with anFHA Loan. Your credit score has to be 620 and above to go FHA. Check with Wells Fargo and Chevy Chase bank. Bank of America is not really lending right now.
0 votes Thank Flag Link Sun Apr 18, 2010
If you only want to borrow less than half the value, I do not think your credit score will be an issue on conventional. Not looking at the grid, I think there is no adjustment. Why go FHA and have to pay MIP on it if that is all you want to borrow? As long as your income qualifies you, you should have no problem.
0 votes Thank Flag Link Sun Apr 18, 2010

Why isn't your home/primary residence eligible for FHA financing? If its your primairy residence you should be fine. Especially if you own it free a clear. FHA also allows you to go up to 85%-90% LTV (depending on the lender) when taking cash out. Better than Conventional.
0 votes Thank Flag Link Sun Apr 18, 2010
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