Financing in 77074>Question Details

B_nancy, Home Buyer in Houston, TX

WHATS THE PERFECT SCORE FOR 0 DOWN

Asked by B_nancy, Houston, TX Tue May 31, 2011

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Depends on the type and structure of the loan. There are several loans that do not require a down payment, USDA, VA, FHA with a soft second from an approved source. Ask your Realtor to refer you to the loan officer they trust the most and then make full disclosure so they can answer your question accurately.
1 vote Thank Flag Link Tue May 31, 2011
Nancy, one more program to help you with 100% financing is the Texas First Time Homebuyer program through the Texas Department of Housing and Community affairs. You can read more about it here: http://www.tdhca.state.tx.us/homeownership/fthb/down-payment…

That link will also help you find a list of lenders approved to offer the program (like us). I know of a few lenders in Texas that can go down to a 580 on FHA and utilize the Bond 77 program for 100% financing. If you would like me to refer you to them, let me know. We require a 640 or higher.

That being said, I would work on getting your scores to at least 620 for FHA. If you want to put 5% down then you can go with Conventional financing and you will need at least a 680 or better; not a 740 but rates are credit score sensitive on the Conventional side so the higher the better.
0 votes Thank Flag Link Wed Jun 1, 2011
As mentioned below - VA and USDA are the only solutions to your 0 down request. To qualify for USDA financing, the property has to be located in a designated area (not rural specific). See attached link for great USDA information -

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do (Copy and Paste to browser).

USDA has income limits based on number of people occupying the home and County that property is located in.

We direct Underwrite and Fund - USDA, VA and FHA.

Another option would be FHA financing with 3.5% down payment. The down payment can be a "gift" from family and the seller can contribute up to 6% toward closing. If you have a family member that can "gift" the down payment and the seller pays all closing cost - you have accomplished your goal of 100% financing.
0 votes Thank Flag Link Wed Jun 1, 2011
Unless yours is a special set of circumstances (i.e. VA or USDA), zero-down loans are no longer available. Most lenders require a minimum FICO score of 740 for a conventional loan (at least 5% down), and 640 for FHA-insured financing (3.5% down). The recent mortgage crisis resulted in unqualified buyers being placed into loan products they could never afford ... essentially, if they could fog a mirror, they could get a mortgage. Lenders might have overcompensated, but the current requirements are what they are ... sorry to be the bearer of such news..
Web Reference: http://www.har.com/algeffon
0 votes Thank Flag Link Tue May 31, 2011
620(for some lenders) and 640(for most lenders) all the way up to 850

However.... $0 Down is only available for Veterans(VA Loans) and USDA(for rural properties)

Tom Burris
Mortgage Banker
DallasLoanGuy.com
(214) 763-4629 cell/text/nights/weekends(really!!)
tomburris@dallasloanguy.com
Lending all across the Great State of Texas!!
0 votes Thank Flag Link Tue May 31, 2011
A 620 or better is needed for 100% USDA Financing and for VA Financing however it's not as simple as having a 620 and that's it. You still have to meet additional credit, income, asset and eligibility requirements for each program but a good lender can walk you through it and show you how to qualify.

The USDA program is a favorite of mine. Here are some highlights of the program:

Home must be in a USDA eligible area which can be verified via this link: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Finance full purchase price plus closing costs up to 103.5% of the appraised value with or without seller concessions
No cap on seller concessions, if seller is not paying closing costs, they can be rolled into the loan amount up to 103.5% of appraised value, not sales price. Great on foreclosures.
One lien, no down payment assistance required
No post-closing reserve requirements
Not limited to first time home buyers
Finance needed property improvements into loan amount up to 103.5% of “After Repaired Value” (case by case, contact me for details)
NO MORTGAGE INSURANCE: That means lower payments than FHA
Full doc only, must have stable work history (2+ years)
Self-Employed borrowers okay with 24 month average income
620 minimum credit score
No open collections, charge offs, judgments or tax liens
No pre-pay penalty
30 year fixed rates
Primary residence only
Available for SFR’s, condos & town-homes only, No mobile homes or multi-family properties

This is also a Moderate Income loan program so there are income limits that are determined by what county you are buying in and how many people will be in your household but the limits are fairly liberal.

I have been closing USDA loans for the last 6 years so if you would like more details on how to qualify for this loan please feel free to contact me at your convenience.

Elliott R. Oliva
Mortgage Banker - NMLS lic. #353884
Envoy Mortgage, LTD.
512.825.8309 direct
eoliva@envoymortgage.com
0 votes Thank Flag Link Tue May 31, 2011
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