Home Buying in 10038>Question Details

Kenya, Home Seller in 10038

I was all ready to purhase a house a few months ago. I didn't have the best credit and worked really hard to

Asked by Kenya, 10038 Thu Jul 16, 2009

get my credit score to the progams standards. But when I went back to apply for a home loan I was told I now have to wait for another 9 to 12 mos. to try to boost my credit score even higher. They told me that the program stipulations had changed and you now have to have an even higher credit score. When will the progams/lender stop raising the bar for credit scores so I can get a house?

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Hello Kenya,

With low credit score loans, you usualy end up working with banks that do FHA insured financing. In the past 5 years, many of these banks have run into trouble with the FHA because of the foreclosure crisis that has happened to our country. For this reason, lenders have been moving from going as low as 500 with their credit scores to up to minimum 620 credit scores. It's not the program that changed, but the ability for that particular lender to take on "riskier" FHA loans. My company is what is called a Ginnie Mae Direct Lender which means we do millions of dollars in FHA loans each year. I am proud to say that we are still doing loans down to 580 credit scores as of January 2010. If you are interested in inquiring or have anyone else that might need our help, please write me an email at jacob_d_johnson@hotmail.com or call me at 646-737-4481. I look forward to hearing from you!
0 votes Thank Flag Link Mon Jan 11, 2010
Hi Kenya, I am a real estate attorney who has practiced in Manhattan for over 22 years. The professionals below are correct in advising you to search out other mortgage brokers who may be able to assist you with the purchase. One of my clients is purchasing a house in the Bronx and obtaining financing for 96.5%. I would be happy to refer his mortgage broker to you. I believe she works with many types of individuals, including those with less than impeccable credit scores. You can reach me at 212-949-5586. I will be back in the office on December 29th. If you reach my voice mail, kindly leave a number at which I can return the call. Enjoy the holidays. Regards, Barbie Lieber

This does not constitute an attorney client relationship or legal advice
0 votes Thank Flag Link Thu Dec 24, 2009
I'm sorry for your delay; I would suggest shopping around for another mortgage lender. If I may suggest Patricia Lavigne of Manhattan Mortgage. Full disclosure, I don't receive compensation for referrals. She's at plavigne@manhattanmortgage.com or 212-745-9012, good luck and I'm' here if you have any questions. Have a safe and healthy new year!!!

Tony Lara
Licensed Real Estate Salesperson
Charles Rutenberg Realty, LLC
127 East 56th Street, 4th Floor
New York, NY 10022
(212) 688-1000 ext. 435
(212) 688-1919 fax
0 votes Thank Flag Link Sat Dec 12, 2009
Most lenders have programs that they can offer you with a credit score of at least a 620. I would say shop around. No one really knows what is going to happen with the lenders and the standards that have been set. It is great that the government is offering an $8,000 credit but the standards to get approved have been raised so there is discussion on what to do to ensure that more indivdiuals can be home owners. A 620 score two years ago was a good score...in today's market...it barely gets you into a home....
0 votes Thank Flag Link Wed Jul 29, 2009
Hi Kenya,

1) There are mortgage programs that allow for financing with scores as low as 580. However, certain negative items are not acceptable(recent bankruptcy etc)
2) Certain co-op or condo's have their own guidelines regarding the purchasers in their projects. Those might be stricter than the bank's requirments.
3) You didn't share in your post whether or not there were other issue in obtaining the mortgage - income, down payment etc...
Best to sit down with a lender/broker and talk about your situation.

Good luck.
0 votes Thank Flag Link Sat Jul 18, 2009

Find a reputable mortgage broker with access to a variety of loan programs, let them shop around for you. sure it may cost a point or so (1% or so) but it's worth it - especially if a broker can get you a decent 30 or 15 year fixed rate loan with your current situation.

To make the broker's life easier put together a few credit reference letters from companies you already do business with. If your account is in good standing you should be able to obtain them. Try calling your light, gas, and cable company to start. Your FICO score is only one part, so I've been told by a mortgage broker that I trust and is helping people obtain loans in this fashion, in today's environment.

Hope it helps.


Clear Path Brokerage, Inc.
Rodrigo Mora, CIC
0 votes Thank Flag Link Fri Jul 17, 2009
There is no question that lenders' standards are constantly changing. After giving mortgages to anyone breathing, the pendulum has now swung the other way. If your lender is a major bank that adheres to Fannie Mae and Freddie Mac guidelines, those guidelines do keep changing rapidly. Major banks that want to resell the loans have to follow these guidelines. A mortgage broker with access to more programs might be able to help you. You may have to pay a higher rate though. It is the harsh reality of the current lending environment.
0 votes Thank Flag Link Thu Jul 16, 2009
good afternoon......do you know what your middle credit score is now?...if so, share it with me, and i'll try to help you..thanks....bob mcclure- success mortgage partners- plymouth, michigan....
0 votes Thank Flag Link Thu Jul 16, 2009
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