Home Buying in Orlando>Question Details

Sellena Alfo…, Renter in Orlando, FL

Qualifying for a home loan.

Asked by Sellena Alford, Orlando, FL Mon Apr 15, 2013

My credit score is 550 I am working on it but I want to buy a condo. What score should I be working towards to qualify for something around 100k less?

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Shellena,

To qualify for a home loan, you will need a 620-680 middle credit score (lenders look at all 3 reporting agencies). Along with 3 or more active and open trade lines (credit card, rentals, utilities, etc) in good standing (no past 30 days due in the past 24 months).

How much a lender will loan you for a mortgage is based on your annual adjusted income. The loan amount takes into consideration the price of the property, condo/association fees, special assessments , property taxes, and insurance.

Condos may be cheap to purchase, but monthly fees and accessments may make them more expensive than a single family home to own and maintain.

Michael D. Bellamy, P.A.,
REALTOR®, SFR, BPOR
Charles Rutenberg Realty, Inc
1900 Summit Tower, Ste. 220
Orlando, FL 32810


407.536.MIKE(6453) (direct)
407.622.2122 (office)
407-567-7551 (fax)
michael@michaelbellamy.net
http://www.michaelbellamy.net
"The Standard of Excellence"
0 votes Thank Flag Link Mon Apr 15, 2013
Hi Shellena:

You would usually need between 620 to 640 for regular loans. I have a lender who offers free credit repair program so feel free to email me so I can send you their info.

Thanks,

Abraham Bidhendi
Top Producer Realtor® with over 26 years of experience
Awarded as Exit's TOP Buyer side Transactions for the State of Florida
We have had 142 successful transactions during the past year alone.
Exit Realty Access, LLC
Direct: (407) 744-2533
Fax: (407) 444-9925
Email: REOsofflorida@msn.com
Website: http://abidhendi.orlandopropertiesonline.com
Kissimmee Office: 391 N. Main St., Kissimmee, FL 34741
Altamonte Springs Office: 660 Palm Springs Dr., Suite D, Altamonte Springs, FL 32701
0 votes Thank Flag Link Mon Apr 15, 2013
660-700 is a good score. You can always look for a seller financed property, and not even have to worry about a credit score. What comes into play there is demonstrating your ability to pay (salary, employment history).

I work with mortgage brokers that help people with low credit scores get on a plan to repair their credit. If you're interested in this yet me know.
0 votes Thank Flag Link Mon Apr 15, 2013
To qualify for a traditional loan, you are going to need a minimum credit score in the 620 - 640 range. USDA loans with a credit score of less than 580 are denied if you have been late on any payments. (Reference: http://www.rurdev.usda.gov/SupportDocuments/CA-SFH-GRHUnderw…)

There are other loan programs out there that may accept less. One of these is FHA. FHA's website states: "Minimum credit score requirements for FHA home loans depend on which FHA loan product the applicant needs. Generally speaking, to get maximum financing on typical new home purchases, applicants should have a credit score of 580 or better. Those with credit scores between 500 and 579 are, according the the FHA guidelines, 'limited to 90 percent LTV'." (Reference: http://www.fha.com/fha_article.cfm?id=200)
0 votes Thank Flag Link Mon Apr 15, 2013
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Its very likely there are serious issues going on with a 550 score that will take time to overcome.

It may be best, if possible, to put 35% down and buy now at these low prices, re-establish credit and then do a low cost refi with only the cost of an appraisal out of pocket in 18 to 24 mo.

Waiting to purchase may be the biggest missed opportunity of a lifetime!

Email me and I'll send you an info sheet to complete and return so I can take an X-ray of what's going on with your credit and advise.

Steve@pro-option.com

http://www.pro-option.com

==
0 votes Thank Flag Link Mon Apr 15, 2013
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