Financing in 32223>Question Details

Dd32223, Home Buyer in 32223

Is it still possible to get a home loan (first time buyer) with a low credit score (630 according to TransUnion) and 100% financing or no money down?

Asked by Dd32223, 32223 Wed Oct 7, 2009

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Your name better be Jesus.

1 vote Thank Flag Link Wed Oct 7, 2009
The scores you find online are different that what a mortgage company will pull, could be higher or lower and they pull all 3. You get a loan now with a 580. FHA can go down to 580 but lenders set their own score requirements.I tell all my clients with lower scores to visit The Lenders Network, as faar as down payment assistance they can help with that but most require a certain score.

Good luck
0 votes Thank Flag Link Wed Jul 10, 2013
Absolutely if your middle score (out of 3) is 620 or better and you fall within the income requirements and the home is approved for that type of financing.

Outstanding collections and balances may need to be paid out before applying to get approved.
0 votes Thank Flag Link Fri Nov 27, 2009
Just to clairify..
USDA does not have a hard floor on FICO scores, however, it will be very difficult to obtain an approval with scores below 620. There must be very serious extenuating circumstances for the underwritter to consider issng a comittment letter.
USDA guidlines closely mirror those of FHA excpet for the property eligibilty requirements. Anyone can check the eligibility of an addrerss at the USDA website:…
0 votes Thank Flag Link Thu Oct 8, 2009
As many others here have already mentioned, USDA allows for 100% and in some cases closing costs can be financed above the purchase amount. With USDA, the property itself must be eligible (must be in a 'rural' area) and there are income restrictions. Mid score must be atleast 620.…

Aside from that, some individual lending institutions offer their own in-house programs. For example, State Employees Credit Union offers it's members 100% financing with very competitive fees. Your credit score may be an issue if you go this route.

You may want to look into credit counseling to see if you could boost your score up in the next 3-6 months. Sometimes just eliminating a few inaccuracies could make a huge difference!

Good luck!
0 votes Thank Flag Link Thu Oct 8, 2009
Ah..sugar..I forgot about USDA. Thanks Kmbrennan!
0 votes Thank Flag Link Thu Oct 8, 2009
Yes! Most lenders have a credit score floor at 620, but many others will look at loan applications with scores as low as 580. USDA allows 100% financing with no monthly PMI and will even allow the loan to cover the closing costs as long as the appraisal supports the loan amount.
0 votes Thank Flag Link Thu Oct 8, 2009
Hello Dd and thanks for your post.

As the others have already noted, most loans will require at least a small 3.5% downpayment in order to qualify the buyer for a loan. I might also add that when individuals in the real estate industry state that a "FICO score must be at least XXX" to qualify for a loan, the mortgage broker or Realtor is referring to the "mid score" or "middle score" and not to the highest credit score provided by one of the three reporting agencies--TransUnion, Experian and Equifax. So while TransUnion may have your FICO listed at 630, if the other scores are, for example, 580 at Equifax and 600 at Experian, then the mid-score will be the exact middle between the highest FICO score (630) and the lowest (580) and, in this case, would be 605.

To learn what mortgage programs are available in your area or if you qualify for any of the current loan programs, talk with a qualified mortgage broker or banker/lender in your area. You can also obtain a free copy of your credit report once each year through

Good luck!

Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA
0 votes Thank Flag Link Wed Oct 7, 2009
The short answer is Yes. You need to use the RDA loan. This allows you to finance up to 102% of the appraisal value of the home. Many times, especialy now, the appraisals are higher than the sales price. Therefore you can finance the entire amount plus closing costs.

There are a few restrictions and its is based on the property location and income in the household.…

This is the link to the eligibility page. The credit score is close but you should be fine. The loan is underwritten through an automated underwriting system called GUS. This is a givernment loan used system that RDA has all files go through. They require a minimum score of 620.

I am very familiar with this program and would like to provide assistance if you need it.

Andrew Kashella
0 votes Thank Flag Link Wed Oct 7, 2009
Depending on the property location the USDA also has a 100% program. Even though it sounds like only for farms, much of New Jersey is eligible. Ask your local lender.
0 votes Thank Flag Link Wed Oct 7, 2009
Yes. Most lenders are still working off 620 scores (middle of 3 scores). The tricky part is the 100% financing. FHA requires 3.5% down for a normal purchase. However, if you buy a HUD foreclosure, you may qualify for the $100 down program. The bank owning the property will pay up to $5000 in repairs and pay up to 3% in closing costs. I do have a lender who will pick up the rest of the closing costs. You can also get down payment assistance from the county you're in. You have to income qualify for that. That's about as close to 100% down as you'll get. Now, you need to also be aware that you'll need money for the earnest money (anywhere from $500 and up) deposit (to hold the house), the appraisal (about $400 - some appraisers can collect the money at closing) and the inspection (about $300-$400).
0 votes Thank Flag Link Wed Oct 7, 2009
I can go down to a 580 fico. But you will need a 3.5 downpayment that can come from a friend, family member or Non profit grant money. FHA home loans are the very eazy for Florida homebuyers to qualify for however you need to figure out a way to come up with 3.5%. If you could borrower it from a family member then one option may be that you can pay with back with the $8000.00 Tax Credit. There are no 100% financing options these days other than FHA downpayment grants which are limited.
0 votes Thank Flag Link Wed Oct 7, 2009
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