Financing in Chicago>Question Details

Felix, Other/Just Looking in Chicago, IL

i have a credit score of 640 and income of $2000 a month. what type of loan do I qualify for?

Asked by Felix, Chicago, IL Thu Jan 6, 2011

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You need to talk to a mortgage lender and get pre-approved. Don't settle for a phone conversation and pre-qualification. Here's a couple articles on what a good mortgage pre-approvasl do and don't look like:……

Call me to start the pre-approval process.

Bradley Eggers
Senior Loan Originator
Ardain Mortgage
847-963-1000 (office)
847-744-0168 (cell)
NMLS #: 222407
1 vote Thank Flag Link Fri Jan 7, 2011
It all depends on your income to debt ratio: what debts you owe more than 6 months to pay off compared to your income. I would suggest contacting a lendor as a first step to take a look at your credit from all three credit reporting agencies along with your debts and down payment. They usually take the middle score. According to your credit score, FHA will probably be your best method. However, a lendor would be able to review your information and advise you if you qualify and the amount you qualify for. Good luck.
1 vote Thank Flag Link Thu Jan 6, 2011
Hi there, Felix!
Have you spoken with a mortgage lending expert about your qualifications yet?
If not, that's the best place to start!
If you have a real estate agent representing you, he or she should be able to provide you with some referrals.
If not, we are more than happy to discuss and recommend a broker to get you pre-approved for a loan!
Give us a call at 312.242.1000!
Web Reference:
0 votes Thank Flag Link Fri Jan 7, 2011
Hi Felix,

Call Matt Bukovy from Wintrust Mortgage 773-654-2498/773-416-7107 he will let you know what type of loan you qualify for.
0 votes Thank Flag Link Fri Jan 7, 2011
The only way to really get an answer to this question is to speak to a loan officer. If you dont have one, I would be happy to recommend one.

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
0 votes Thank Flag Link Thu Jan 6, 2011
Hi Felix,

It's great that you are looking at your finances before you begin your search! Understanding your buying power will help you to target your search within an obtainable range. One of the best things you can do to prepare yourself to purchase a property is to find a reputable Mortgage Consultant at a Bank or Mortgage Company. You will want to complete an application and request a "Pre-Approval" ( or at minimum a "pre-qualification"). The pre-approval will arm you with the knowledge and confidence of what is affordable for you. Next find a great Realtor and start your search !!!

Good Luck to you !!!

0 votes Thank Flag Link Thu Jan 6, 2011
Hi Felix,
Really great question. With a credit score of 640, you have just met the minimum threshold to purchase using an FHA loan. All the answers below are correct. If you are looking at raw numbers, based on an income of $2000, FHA guidelines say your housing ration shouldn't exceed 31% of your gross income. With that being said, you would be looking at paying no more than $620 per month for a mortgage. Your down payment and other monthly recurring debts will be the final determining factor regarding your total qualifying amount. If you'd like to get more information, please feel free to give me a call. Just one last tidbit of information, before you being shopping for your new home, you will want to speak with a lender. If you have pulled your score from an online source, at times they are not as accurate to what lenders will pull, just an FYI. Thanks again for your question, it's a very important one.

Cecelia Marlow
Chicago Bancorp
Mortgage Banker

0 votes Thank Flag Link Thu Jan 6, 2011
Hi Felix,

Based on a 640 fico score, you would best qualify for an FHA loan. Do you make $2000/month gross income or net income?

Please contact me directly if you would help with getting pre-qualified for a mortgage.

Kind regards,
0 votes Thank Flag Link Thu Jan 6, 2011
Much will also depend on your overall finances--amount down, any debt, etc., therefore consider visiting with any qualified loan officer; after reviewing your information, he/she can make a determination on qualification, how much, type of loan, etc., then go from there.
0 votes Thank Flag Link Thu Jan 6, 2011
My web site has some lender references and Ardain Mortgage does FHA. You should call a number of banks to ask and avoid the big names like Chase, BOA etc because they are very rigid with their requirements. TCF, Marquette are some others to try.
0 votes Thank Flag Link Thu Jan 6, 2011
FHA could be your only option, depending on your debt/income ratio and the mortgage amount you'd apply. Please contact a mortgage broker that does FHA loans.
0 votes Thank Flag Link Thu Jan 6, 2011
It would be best to talk to a lender for specifics on what you would qualify for and fit your situation best, but a FHA loan has lower credit score requirements and requires a lower percent down than a conventional loan
0 votes Thank Flag Link Thu Jan 6, 2011
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