Home Buying in 53223>Question Details

Monique Hall, Both Buyer and Seller in Milwaukee County, WI

Can I get preapproved for a conventional loan 95%LTV with a 660 credit score?

Asked by Monique Hall, Milwaukee County, WI Wed Jul 31, 2013

I am looking to get preapproved for 200K. I know I will need to go the conventional route because my husband and I own a home that is already an FHA. This current home that we live in is too small for our family size but does not have 25%equity. I just had some questions about a preapproval. My scores were recently pulled in June and the scores for myself were 700, 682, 646; my husbands are: 684, 662, 642. Our debt to income ratio is 30%. Our monthly gross income is 8K, our debt including mortgage is around 1500, not including student loans that are in forbearance. Without running credit and further hurt the scores, would you be able to tell me if your company approves (conforming loan) at 5% down with scores like the above. Additional information; I was part of a loan modification scam, where the company took 9 months to complete the underwriting and each month reported the payments as being late. Then they charged 10,000 at closing, which they conveniently put on the back end of the

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Not a 95% LTV with a 660 score, a 10% down payment is the best you can get with a jumbo from what I know. I know The Lenders Network has a lender that can do Jumbo loans with a 660 credit score but you need 20% down, 10% if you have a score over 700. You should try and get your scores up to the 700 range, The Lenders Network has a really good DIY credit repair kit they give out for free you should check out. Hope this helps!
0 votes Thank Flag Link Wed Jan 29, 2014
Hi Monique: to answer your first question... Yes and No for the 95% LTV with 660 credit score. Yes, you may be approved for the loan BUT it could be a NO because MI = Mortgage Insurance is VERY hard to get with credit scores under 680. If you do get approved for the MI then it will be VERY high! My concern from your e-mail is the mortgage lates on your mortgage were they rolling 30 day late payments or did your mortgage go 9 months delinquent which in a lenders eyes in the start of foreclosure? You stated that your current home is too small for your family... is your family a newly blended family, have you adopted kids, foster kids or had twins/triplets etc...??? There are a few circumstances under which you can hold 2 FHA mortgages is why I am asking. If you would like to discuss your situation further please contact me directly.
Mandy Fritsche, Prospect Mortgage, Mortgage Loan Officer, NMLS# 557211
262-327-5700 Cell, 877-868-9198 Fax, mandy.fritsche@prospectmtg.com
0 votes Thank Flag Link Wed Jul 31, 2013
I only had one child when I bought my first home and now I have another, opposite sex with only 2 bedrooms and no expansion option. However, there is not 25% equity in my first home. I wasn't sure that you could have 2 FHA loans with no equity.
Flag Wed Jul 31, 2013
I applied for the loan modification in July of 2009. It was completed in February of 2010. They reported as rolling lates. Since that time I haven't had any lates. I know lenders are reluctant to give us a chance, even when they know the circumstance surrounding the reporting. Mortgage companies don't usually change the way they report. In 2009, there was a financial crisis in the US. There was an automotive crash (GMC, Chrysler), stock market crash. My savings was tied to the stock market and I lost approximately 20K. My husband is an automotive machinist and he was laid off. I did the responsible thing, so I thought and contacted the mortgage company and asked for a forbearance/deferment. They offered me a modification. By November of 2009, I was able to pay. When I sent money in, it sat in escrow until they completed the modification. They claimed they were too busy to get to it and didn't complete it until February after I threatened law suit.
Flag Wed Jul 31, 2013
Hi Monique, sorry to hear about the loan modification ordeal that you experienced. Unfortunately predatory lending still lurks as well as greed, and other unethical, unprofessional tactics. Some lenders (and third party investors) have good intentions but may lack proper procedures and policies in place to serve the best interest of the customers. You and your husband have solid credit scores (640-700). Many lenders will require a minimum score of 620 or above for conventional financing, with 10%-20% down payment for residential purchase. Some lenders may allow 5% down payment depending on their specific requirements and programs. Of course they will need to see your total financial picture, including debt-to-income ratio and other pertinent factors that will help determine credit-worthiness. They would also need to know your plans for your current home, and whether you plan to sale it or keep it as investment/rental income, in which case, the rental income would add to your debt ratio in a positive manner.
Since pre-approval is quite different than pre-qualification, they would actually pull your credit scores, verify income/employment, etc. If you'd like to speak further with a loan specialist or lending professional, I am happy to refer you to a lending professional in the area.
0 votes Thank Flag Link Wed Jul 31, 2013
The front end and back end ratio look good and the credit scores are good as well. But having said this, you and your husband should seek the expertise of a loan officer. This is the best advice I can give you.

Best of Luck.
0 votes Thank Flag Link Wed Jul 31, 2013
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