Home Buying in 60655>Question Details

Large26, Home Buyer in 60655

Hi all my question is Im looking for a condo in the 110k range,my credit is around 600, I have 10% to put down ! Will I find a mortgage or lender to ?

Asked by Large26, 60655 Thu Feb 17, 2011

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13
If you're going FHA you have a chance. If you're going conventional you'll never get PMI coverage with a fico that low. Make sure the association is FHA approved.

Good luck,
Mike.

mcline@waterstonemortgage.com
1 vote Thank Flag Link Mon Feb 21, 2011
In addition to the comments arleady provided, another suggestions is to apply with a lender who works with IHDA's http://(www.ihda.org) Smart Move program. Even though you have more than enough to meet the min. down payment for an FHA loan, you can obtain a lower interest rate through this program. Current interest rates through the program on an FHA loan are at 4.50% on a 30 Year Fixed Rate. The porgram allows for a lower min. score (currently 620) than a normal FHA loan with lender credit score overlays. The program is offered to first-time homebuyers or veteran, household income and property purcahse price must be within the program limits.

Sincerely,
Bill Katsoolias
bkatsoolias@wintrustmortgage.com
0 votes Thank Flag Link Fri Mar 4, 2011
Mike's right again! Make sure you focus on FHA approved condo associations. There is a HUD approved list and don't bother walking into cheaper units not on the FHA list. condos in that price range often have troubled associations and limits your choices. Have your agent help you target only FHA approved HOA's. Best of Luck!
0 votes Thank Flag Link Fri Mar 4, 2011
Hi Large 26,
You are definately on your way to becoming a homeowner, if you currently have a 600 credit score there will be a little work to do, however, getting you the points that are needed shouldn't be that difficult of a task. If you have a copy of your credit report, I'd be happy to review it with you. If you need a copy of your credit report you can get a free copy once a year at http://www.annualcreditreport.com
There are a couple of things to keep in mind:
1. Unless you received your credit score from a lender, the score is probably not accurate. There are a lot of monthly credit monitoring services available, however, I haven't seen one to date that reflected the scores that I pulled as a lender.
2. Since you have 10% to put down, it may be worthwhile to check all your options. If going FHA you for sure want to work with an experienced Real Estate Agent, who kknows how to use the FHA Approved condo list.
3. Don't give up. It's great that you've come here to get advice, but now it's time to take the next step and begin building your team of trusted advisors! To your success!

Cecelia Marlow
- Mortgage Banker
0 votes Thank Flag Link Tue Feb 22, 2011
You to do the following:
1- Get copies of your credit report (with scores) from the 3 bureaus. You should then check for accuracy.
2- Speak to a knowledgeable mortgage officer to discuss what you can do to increase your score.
3- Only look at FHA approved condos. You need around a 740 FICO to get PMI for a conventional mortgage. That is not going to happen.
0 votes Thank Flag Link Mon Feb 21, 2011
The only way to be certain regarding whether or not you will qualify for a loan is to speak with an experienced lender – who will assess your qualifications. Additionally, the property you eventually buy will need to qualify for financing, too. That’s also something you will also want to discuss with your lender – so that you don’t waste time looking at homes that will not be finance-able.
We are happy to help you any time.

Feel free to give us a call at 312.242.1000.
Web Reference: http://www.dreamtown.com
0 votes Thank Flag Link Mon Feb 21, 2011
Call Todd Olson - Wells Fargo. http://www.wfhm.com/todd-olson to apply online - anytime!


They have programs for your credit score.
0 votes Thank Flag Link Thu Feb 17, 2011
Hi there,

Call Matt Bukovy 773-416-7107 with Wintrust Mortgage, ask him about the Smart Move program.

Good luck!
0 votes Thank Flag Link Thu Feb 17, 2011
Anything is possible... but you might need to work on raising your credit score.
Where are you looking to purchase?
Give me a call - I'd love to help you.
Lynn Pufpaf
773-339-3367
0 votes Thank Flag Link Thu Feb 17, 2011
Talk with a lender but make sure that the condo you want to purchase can be approved. Getting a loan on a condo right now, in this market is tricky at best. At least that is the case here. Talk with a lender and see, condos in general are not as good of an investment on average as a SFR.

Best of luck.
0 votes Thank Flag Link Thu Feb 17, 2011
Credit score plus job history, stable salary job and debt to income ratio a big factor. Plus a FHA condo loan with 10% down is tough if home owners association not on FHA approved list.
0 votes Thank Flag Link Thu Feb 17, 2011
I think you will get an answer here from a local lender who can, if everything else fits, get you into a loan.

I suggest you instead look at the next six to twelve months as a time to get your credit house in order, raise your FICO and be a better prepared borrower.
You will have plenty of inventory to choose from, be prepared for a purchase, and save money every month with a lower interest rate.
In theory you fit FHA guidelines, and if you are a veteran you can inquire about using a VA loan, but you are right on the edge of qualifying with your credit score and that is not the place you want to be.
Expect a higher rate and more fees up front, versus improving your credit health, lowering your costs at closing and having a lower monthly payment.
0 votes Thank Flag Link Thu Feb 17, 2011
Hopefully you'll get some lenders to chime in, but I'm pretty sure you need a minimum of 640 credit score. Find a local lender or mortgage broker and start the prequalification process. they will be able to see where you're at, and what you need in order to qualify. Good luck!
0 votes Thank Flag Link Thu Feb 17, 2011
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