Corey,

You can qualify for a home loan with a 640. A 640 is not bad but it is the minimum score required to get a home loan. Credit standards have changed greatly since foreclosure rates have been increasing. You will essentially have 2 options:

1) Come up with 20% down and do a conventional loan up to 417,000 or
2) Do an FHA loan and put 3.5% down. This is your best bet as far as qualifying today.

Most lenders can offer you an option, but to be candid, the person helping you does not sound very knowledgeable if your having to ask other people if you qualify.

You should wait until a lender has evaluated your income, credit, and assets and given you a pre-approval before looking for a home.

I hope that helps. Feel free to call me at 214-620-9739 if you would need any other help.

or check out my site

http://www.mylendingplace.com/mortgage/rates/Dallas/


Bobby Callaway

Hi Corey,

I agree that it has to do with you going from zero credit to 640 in 6 mths. You more than likely don't have enough trade lines. No, 640 isn't bad, the minimium is a 620. I can't say how many lenders she will have to check before she gets a yes. Have you tried scouting for other lenders as well?? When you do get a yes, they will let you know how much you are pre-approved for.

If you aren't already working with a Realtor, I would be more than happy to assist you in finding & purchasing your new home! I personally specialize in the Sales of Brand New Homes in the Dallas-Ft. Worth area. I always strive to meet & exceed my clients expectations, as well as, negotiate the best deal possible!

Please call or email me at your convenience.

I look forward to hearing from you soon!

Make it a Blessed Day!!

Tamika Turner
"Your New Home Specialist"
Cell: (972) 697-1178
Fax: (682) 222-1049
Email: Info@NewHomesInDFW.net
http://www.NewHomesInDFW.net
"Specializing in the Sales of Brand New Homes in DFW!"

Likely, your issue isn't the credit score but lack of trade line depth on your credit.
Many lenders are looking closer at the actual credit...... it isn't all just the score.

Hopefully the broker will find another lender for you.

Corey,
Please take whatever a real estate agent tells you about financing with a grain of salt, especially when talking about rates.
The problem is not your credit score, but more than likely the lack of credit depth. You stated that you went from a zero score to a 640 in 6 months.
Feel free to call me to review all options. We have manual underwrite programs down to a 580 credit score.


Josh Stewart
Preferred Mortgage Consultants
1800-839-1019 ext 135

Corey, I just spoke with my lender and Classic Home Financial (a resale brokerage that only the broker can access) will go down to 620. Met Life will do 640 with no problem. Ask your lender about these too companies....

Yes you can. 620 is the low mid-FICO required at this time. There are more than just a few loan program options that may be open to you know. Rates are great too. Please call or email.

Corey, FHA minimum credit score is 620. I've gotten several people right to the brink of 620 and closed them. It's even possible to perhaps raise your credit score a bit by easy things, like paying a little bit on an account that's maxed out. Don't give up hope! Call a lender that does FHA. They should be able to work with you with no problem.

The one caviat is that your interest rate will probably be a tad over the average. In my clients I have under contract currently it is running about 1/4 of a point.

Good luck! Let me know if I can suggest a lender.

I believe we are going for an FHA loan will that make a difference?

and as far as percentage down i'm looking at putting anywhere from 10-20% down on a house in the 150-200k range.

Does that help me at all?

Generally 720 will qualify you. Anything below is considered high risk in this market. If your broker finds someone to qualify you still have to be approved which can ultimately really frustrate you, especially if you find a home you really like. You may have to put a larger percentage down..