Financing in Houston>Question Details

JRG, Home Buyer in Houston, TX

Is there a lender out there that can give a 5% down loan?

Asked by JRG, Houston, TX Tue Mar 12, 2013

My credit union reran our credit again and we were informed that we have dropped a tier. He said that Fannie Mae wont approve us because of a referal in caution? (i think thats what was said) our mid

scores each are 660. We were told 20% down or no go. We are under contract and need to get an approval.

Help the community by answering this question:


Here are the current requirements for 95% Jumbos in TX..

95% Loan to value: Up to $1,000,000 with 680+ credit score. Buyers can choose 1 loan up to $850,000. Or a 1st and 2nd mortgage combo up to 1 million. Both Jumbo options have no monthly PMI
90% Loan to value: Up to $1,500,000 with 720+ credit score.
85% Loan to value: Up to $3,000,000 with 740+ credit score.

Five Stars Mortgage
National Home Loan Resource
7 days week - 9am-8pm
Ph: 800-871-2636
0 votes Thank Flag Link Thu Apr 14, 2016

I can tell you right now with a 660 credit score you can do an FHA loan all day long. I get people done with 560 credit scores everyday and have no problems at all. Contact me and we can go over all your options right now.
0 votes Thank Flag Link Sun Mar 17, 2013
I second John Burke's recommendation about having an experienced loan officer review your credit report. You could have lost 30 or 40 points by just being $1 over your credit limit on a credit card. Rapid rescore would work in that case. I hope you have kept your monthly payments up to date.
Good luck!

Barbara Coker
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas!
0 votes Thank Flag Link Wed Mar 13, 2013
Hello JRG,

FHA can be an option (up to S271,000 loan amount), 3.5% min down payment, and a monthly MI lower than what it would be with a 660 credit score on a conventional loan, which we can also do.

We can also work with a second lien loan and structure as a 80% (first lien loan), 15% (2nd lien loan) and 5% down payment, thus avoiding a mortgage insurance payment (MI).

We are direct lenders - FHA, Conventional, USDA, Jumbo, etc, in-house underwriting and processing, offer highly personalized, competitive and reliable mortgage loan consulting,

Call me for further details and or any questions you may have.

In Service,

Mario Romero
Branch Manager
Amcap Mortgage Bank
NMLS Lic #247133
0 votes Thank Flag Link Wed Mar 13, 2013
Please check with me as well. We are local mortgage brokers, work with many lenders all with different guidelines, and have many programs available.

Anna Maria Durr, NMLS 266699, TREC 596662
2626 Richmond Ave., Houston, Texas 77098
0 votes Thank Flag Link Tue Mar 12, 2013
Yes, basically every lender in town can do a 5% down loan for conventional if your score is above a 680, and most every lender can do an FHA loan for 3.5% down if your score is above 640 and you have not judgments on your credit for more than $100 if this is for your primary residence. If it is for an investment property or vacation home, you will most likely need 20% down. Please let me know if you'd like a referral to my Mortgage Banker. She will be able to assist you and doesn't charge an origination fee. Thank you.


Brandon Newton
0 votes Thank Flag Link Tue Mar 12, 2013
There are plenty of lenders out there that can work with you. I have several that specialize in low credit scores and 1st time buyers. Please click on this link to view these local lenders.…

Credit Unions can be a bit conservative. Maybe another lender can help.

Good luck!

Mark McNitt
m 832-567-4357
Bernstein Realty, Inc.
0 votes Thank Flag Link Tue Mar 12, 2013
Well, if you don't have the 20% to put down, you might consider FHA. The 660 will be fine with them, and the minimum down is 3.5%.

If your credit union doesn't offer FHA, you could call us, or ask your Realtor for the FHA lender he/she prefers.

Good luck!
Barbara Coker
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas!
Web Reference:
0 votes Thank Flag Link Tue Mar 12, 2013
You would be able to do up to 96.5% with FHA. If you would like to discuss please give me a call. I am a broker with over 15 different lenders, all offer FHA so I can shop around and find you the best options.

Don Groff
REALTOR® & Mortgage Broker
Austin Real Estate Pros | 360 Lending Group
office: 512.669.5599 mobile: 512.633.4157
websites: |
0 votes Thank Flag Link Tue Mar 12, 2013
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