So what has happened is that any lender that allows scores under 640 has very specific guidelines on what type of customer they will approve in that range. One thing that is a must is that the applicant have an acceptable and verifiable rent history for the past 1-2 years. And the rent they have been paying needs to be comparable to the proposed mortgage payment for the house they would like to purchase.
Applicants in that range also will probably have to put 5% down instead of the FHA minimum of 3.5%, and I have seen most lenders that allow those scores not allow gifts.
So if you are a homebuyer want to be it is imperative that you figure out what you need to do to plan for the home purchase. It may take a year or two but definitely worth the end result.
Lisa Allen, CDPE, CRDS, SFR
Short Sale Specialist
Can you pull it up to 620? The difference in the 2 may be better rate or less paperwork and hassle.
Some other things to know: always use a Realtor. It doesn't cost you anything and can save you thousands of dollars and tons of time.
Always get an inspection (about $350). I don't care if it's brand new. I had a client refuse one on an old house and he didn't have an a/c unit when he moved in. It cost him $2500.
Termite inspection is usually paid by the seller, but not always. Most all lenders require it be done prior to closing.
A Survey (about $300 to $400) tells you where the property lines are. Ask the seller to provide you one. The lender doesn't always require one. My neighbor had to take down her $4000 fence because she had it built on someone else's property.
Buy closer to the end of the year. Doing so means the difference in paying 6 months of property taxes now or 2 months in December.
Slower months in sales occur after school is in session so you have more negotiation power.
Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified you purchase, you can submit your request online at http://www.rodneymason.com.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing
It is most likely do-able. obviously getting a loan is more than just credit score. Only a lender who knows all your financial situation would be able to make that judgement. I work with wonderful lenders who most likely can get you a loan.
Once you get pre-approved, we can schedule appointments to see the properties you are most interested in purchasing. Feel free to review properties on my website (link below).
Fred Yancy, Broker