Financing in Boynton Beach>Question Details

Druffin10, Home Buyer in Delray Beach, FL

i would like to qualify for fha loan of $50-100,000. where do I start? scores: 579, 613, 663; 4000 month net, $120/mnth student loan pymt only

Asked by Druffin10, Delray Beach, FL Mon Sep 19, 2011

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When looking for a loan, consider a lender that offers a 203k or streamline loan. In today's market you will probably buy a foreclosure needing 10k to 15k in repairs and this will complicate the loan if options are not available. This type of financing will get you past a loan denial, because of repairs listed by your home appraiser. These repairs has to be financed or done before closing. Another important factor in seeking a lender for a loan is in house underwriting and funding of your loan. This will keep the communication / processing of your loan competent and all parties to the transaction will have timely notification of changes of FHA rules that could effect your loan approval. You will want to be approved by every lender that offer a good rate, but understand the limitations regarding credit inquires. In respect to credit inquires, you have soft or hard credit pulls, meaning it depend's on the inquiry you have a certain amount of days to count the inquiry as 1 credit inquiry. Make sure your pre-approval is very specific to the terms of the Good Faith Estimate the lender gives you, it should indicate if you have underwriting APPROVAL and indicate the credit score, closing cost, reserves and down payment grant/gift assistance guidelines!! You need to have a complete understanding of these credit approval guideline condition's or your credit pre-approval can easily become a denial. I believe that the credit score's and source of down payment are the two major area's of concern, everything else is negotiable based upon the lender you pick. Credit should be protected everyday with credit monitoring and the (5)FIVE area's of identity theft protection. Also do some reading on the Fair Credit Reporting Act of 1971 or check my web reference
0 votes Thank Flag Link Tue Sep 27, 2011
0 votes Thank Flag Link Tue Sep 20, 2011
That is correct Kumar, Wells will go down to 600 if not lower depending how much down-payment they have...
Flag Wed Jul 16, 2014
A government insured, FHA loan is most likely the loan that you will qualify for. FHA actually does not have a minimum score, however, the bank or mortgage brokerage originating the loan will set their own criteria as to what their minimum score is. I just saw an email today that was advertising a starting score of 600 but most are at 620 so improving your score will open up more avenues. On an FHA loan the criteria changes often and it is best to get with a FULL time loan officer or mortgage broker who can also work with you to improve your score a little bit. There is a computer program that will be run to see if you are eligible, however, these loans can also be hand underwritten if you have what is called compensating factors- lots of cash in the bank or low debt to income ratios there are exceptions that can be made. It's a complex business and best left to the pros.

No matter what you will need to have a pre-qual letter as no one takes an offer without one. You also may run into having to get a pre-qual again from that specific bank if you are buying a foreclosure. Bank of America, Chase, AHMSI and Wells Fargo all require you to pre-qual through them in order to put an offer in on one of their bank owned properties. This is an important investment. Take your time, do a lot of research, stay well within your budget; look at the cost of repairs- materials have gone up considerably, sometimes it's best to spend a little more and get something in better condition. These prices will be here for a while so you have a good year perhaps two before this market starts to head up; plenty of time to prepare well for your purchase. Best of luck to you!
Web Reference:
0 votes Thank Flag Link Tue Sep 20, 2011
I would call Sean Donahue at Covenant Mortgage and he can help you right over the phone 954-415-2007. His office is in Boca Raton.
Web Reference:
0 votes Thank Flag Link Tue Sep 20, 2011
You are very close. Sometimes the empirical models used on the check your own credit score website services are not the same used by underwriting. The minimum middle FICO score needs to be 620. I would be glad to reviw that with you to see how we can increase the score and then rescore your credit. Feel free to email or call me. 727-331-8400
0 votes Thank Flag Link Tue Sep 20, 2011

Yep, Get with a lender and they will tell you exactly where you are at.

Hope you get your home soon!
0 votes Thank Flag Link Tue Sep 20, 2011
Dear Druffin10,
I can't say it enough, talk to a Loan Officer of the Bank or Mortgage Company of your choice. Talking doesn't mean you have to deal with that particular person and/or bank but it is a start, at least concerning what you can do and what steps to take.
When I started in the Real Estate industry 28 years ago, it was not uncommon for Realtors to pre-qualify their buyer themselves. Nowadays, I would not even attempt to do it, there are too many rules, regulations, constant changes, type of loans, etc.
We are all more specialized, let's leave the "Mortgage business" to the "Mortgage Pros". Don't do yourself an injustice by not following the right channels. Good luck.
(If you are leery about who to talk to, ask for recommendations from friends and family)
0 votes Thank Flag Link Tue Sep 20, 2011
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