Home Buying in 95608>Question Details

Al Rich, Home Buyer in Carmichael, CA

Achieving a mortgage with 5% down, 710 credit score and $100,000 yr income on $250,000 home in Carmichael CA

Asked by Al Rich, Carmichael, CA Sat Mar 26, 2011

I have had a hard time because my credit score is below 720, a mortgage insurance rule as I understand. I need to go conventional. Any Mortgage companies that can do 5% with a 710 Credit score? I have a great job @ $100,000 yr.
Thank you for your kind answers!

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Deborah Garvin’s answer
Al, Since your question is from March, I have to assume you found some resolution or you gave up! However, I think a consumer in your situation may have more options than you think, A thorough conversation with a mortgage professional may just get the deal done. I know I just pulled a transaction from the fire pit over a sudden drop in credit score and all it cost the client was $40.00 for one trade line and one bureau on a Rapid Rescore. I got the 45 points I needed to make the transaction work. Docs are being drawn tomorrow and the loan will close on time 8/30. Oh, I received the loan application last Thursday afternoon. Sometimes, there is more than one way to accomplish a goal...good ole BofA just declined the loan. I am grateful to them for the opportunity to help my, now very loyal, client.
0 votes Thank Flag Link Thu Aug 25, 2011
Hello Al,

I work with a lender than can do 5% down on a loan up to 417K with no MI. The only catch is the at program is available to individuals that meet the income restriction requirements (not an option here) or the property is in an approved census tract. If you'd like to provide me the address, I can take a look and see if the property qualifies for this loan. Have a great day.

Michael Abram
First Capital Mortgage
NMLS #235060
Direct: (310) 434-1718
Fax: (310) 451-6407
0 votes Thank Flag Link Thu Aug 25, 2011
I know my lender has several programs available for that. US Bank has a special program as well, but I believe they have an income cap which is below the amount you are looking at.
0 votes Thank Flag Link Thu Aug 25, 2011
Some of the stronger banks have some deals going. For example Comstock has a low down option, but I think your income needs to be below $85K... I'd call and get the names of some of the strongest players in town- Comstock, Vitek, Summit Funding, as well as Wells Fargo... to see what programs they might have. You're coming up on an April 1 change to operations for lenders so there will be some shakeout for brokers...these that I named are backed by banks. There are promotional offerings along the way. Another option might be to call credit unions. Last, I know some local community banks that have their own funding (portfolio lenders) that might have an offering for you. You're not far off....
(you asked this twice, I'm only answering on this posting...)
Web Reference: http://www.suearcher.com
0 votes Thank Flag Link Sun Mar 27, 2011
I'd still find out whether they're using a FICO or a Vantage. Could make a lot of difference.
0 votes Thank Flag Link Sun Mar 27, 2011
Michael is correct, you can get MI on an conventional mortgage with a 710 score depending on debt ratio.
Also, FHA rates are currently lower than conventional and it could be structured that the FHA loan, even with the up front premium could be cheaper. Make sure you have been presented with all options by an experienced loan officer.

If you need assistance, please call or email.
Web Reference: http://TripointMortgage.net
0 votes Thank Flag Link Sun Mar 27, 2011
Sorry, one important item I missed - when your score goes below 720 you are limited to a 41% debt to income ratio. To exceed the 41% you need the 720. Maybe that was the issue?

Another angle to look at is whether it's possible to get your credit score up 10 points - and I'm NOT suggesting you pay a "credit consultant" to game the system. Often times just a small adjustment to your existing accounts increases the score by 20-30 points. It just takes a $17 credit report to analyze that option.

Third - and it may be that the ultimate payment is similar due to a lower rate - is the FHA loan. They don't have debt limitations and FICO fee add-ons for someone with a 710 score.

I'm sure something will work to your advantage Al.
0 votes Thank Flag Link Sun Mar 27, 2011
Al, it's possible the lender you spoke to doesn't use a MI company with sub 720 FICO for 95% LTV loans. I'm online right now reviewing Radian's PMI guidelines and you should be good down to 680. That doesn't mean that your specific loan will be approved but we've got at least two of our banks using Radian for the MI so we'd be ok to proceed. If you want help, just let us know.

We're located in WA but my "home" is Sacramento. We're both Sac State grads and spent 20 years in Sacramento before moving North.
0 votes Thank Flag Link Sun Mar 27, 2011
This same question popped up earlier. Once again find out if the credit reporting agencies are using the FICO or Vantage score. This seems to be popping up more and more on some of our clients.
0 votes Thank Flag Link Sun Mar 27, 2011
John - mortgage banks/brokers only subscribe to getting FICO scores from the bureaus...a Vantage score is for consumers only, and one of the many other types of credit scores that are being used (close to 50 credit score models other than FICO)...and you're correct in that it can be entirely different than the FICO score....I have no idea why so many alternative types of credit scoring exists, and how confusing is this to the average consumer that doesn't shop for loans regularly!
Flag Sun Aug 4, 2013
I have started with many buyers that are opposed to FHA because of the mortgage insurance. A 5% conventional will require mortgage insurance also.

I think you should go FHA.
0 votes Thank Flag Link Sun Mar 27, 2011
Needing to go conventional with 5% down could be difficult - but not impossible. I work with a fantastic local mortgage broker who will tell you like it is. Her and I believe in telling the truth to get the job done. You knowing your real options is way better than thinking you've got something in the bag, and then losing out at the 11th hour. Shoot me an email, and I'll gladly put you in touch with her.

Morgan Larson
Web Reference: http://www.MorganLarson.com
0 votes Thank Flag Link Sun Mar 27, 2011
Hello Al, I'm pretty sure some direct lenders I work with can help you with your financing goals. You can reach out to me and I'll give you their contact info. They will be available to talk this weekend. Yes, they work on Sunday!

I hope this helps!

Ryan Smith
0 votes Thank Flag Link Sat Mar 26, 2011
Call me monday. My partner iqbal dhindsa is licensed in california and we can get this done.

Matt puzz
Citizens choice mortgage
Web Reference: http://www.mattpuzz.com
0 votes Thank Flag Link Sat Mar 26, 2011
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