You should be able to get an FHA loan at current market rates with your current score. You are only required to put 3% down on an FHA purchase. I would hang on to the the extra reserves. You never know what may happen around the bend with this economy. I have been an mortgage underwiter since 1986 and I have never seen it as bad as it is right now. Rates are good though. I'm afraid that whenever they start to climb, we won't see rates this good again. Good luck and I hope you enjoy your new home.

Hi Seekingcincy, this is Red over here at Century 21 Merit office. A 658 is a good score but you should aim a little higher so you can get a better rate. Depending on where you got this score from (hopefully not from my fico.com) it indicates to me that you need to pay down on some of your credit and build. So you need several plans, one for your credit and one your your reserves. The question I have for you is..how long do you plan to live in the house you plan on buying?

Naeema "Hey Red" Mansur
213-858-8600

Hello,

The lenders look at the middle score. As long as that is 620, you should be fine to close within 30 days once the contract gets to your lender. If your middle score is lower than 620, it may take longer to close your loan with underwriting (35-45 days), but you still should be able to get a loan. I have some referrals for a mortgage approval, one that helps with credit repair and is excellant! Contact me for more info at sheri.mapes@cbws.com (email).

Happy House Hunting!
Sheri Mapes the Cincy House Expert
(513) 253-7156

I agree with Joshua from a different standpoint. Just put down 20%. Then you have money available for an investment property. We will (hopefully) never again see this type of a market again. This is the time to get a great multi-family as your first property, where you live in one unit and rent the others. And then get a 2nd one. That is a serious key to future financial independence and building weath.

Hello,
As of Friday, I had rates available at 4.75%. I wouldn't recommend putting too much money down only because it's difficult to get access to the equity in your home in the current market if you would need it. The only way that I personally would put more than the required money down is if I wanted to buy more house and still wanted to keep the monthly payments lower. If you would like me to give you more information for what I have available, you can email me at jpick@crefco.com, or call my direct office line at 216-236-7266. I will be in the office at 9 am on Monday morning. Thank you for your question!

Joshua Pick
Sr. Mortgage Consultant http://www.CREFCO.com

Yes you can get a loan! Plenty of lenders will look at your application with 40% down.

If you watch too much of the news, it's easy to believe that no one can get a loan right now. The reality is quite the opposite. You need a job, decent credit, and some cash reserves. Underwriters are currently scrutinizing details a little more than they used to, but there is still a ton of lending going on. If you'd like to email me I'd be happy to give you the contact info for a great lender I work with all the time through Wells Fargo.

Agreed - provided your DTI ratio is reasonable yes. However - please DO be aware that the rate that you will get may not be quite as good as it could be, given your credit rating.

I'd highly recommend spending a few months pumping it up. Simple stuff for you: Pay off all credit cards, keep using them a bit but pay them off in full. Don't be late with any bills. Don't cancel any cards (you should have between 3-4 cards, perhaps 5).

For a mortage, I'd recommend Wells Fargo - they beat everyone's rate (including the ones from 2 mortgage brokers.

If your debt to income isn't too high, then yes. I don't see why not. My score is right around that number and I bought a house!