Home Buying in 95148>Question Details

kunal103, Home Buyer in San Jose, CA

What are the requirements to get a conventional loan. Ex: you need minimum of 3 years of credit history

Asked by kunal103, San Jose, CA Tue Dec 18, 2012

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Randy Roberts’ answer
There is no credit history requirement, you will need a 620 credit score and 3% down for conventional loans with the Lenders I know that have helped my clients.. If you would me to refer you to a Lender please email me or visit our website..

https://thelendersnetwork.com/conventional-mortgage/
0 votes Thank Flag Link Tue Sep 24, 2013
I know of a lender that can do conventional loans with 640 scores and 5% down. You would need to not have any collections that total over $1,000 and good payment history over the last 2 years.
2 votes Thank Flag Link Sun Sep 1, 2013
The requirements are different depending upon which loan program you are trying to get qualified for. I strongly urge you to go through the process of consulting with a mortgage broker in your community and exploring your options.
2 votes Thank Flag Link Tue Dec 18, 2012
Hi Kunal

Excellent question.

You need generally three lines of credit open for at least two years and a FICO
Score of 630 plus.

Also, depending on where in the County you are buying a property, one needs a down payment
Ranging from 0 to 20%.

Of course one can arrange gifts from family members for the down payment or closing costs;
but other money has to be seasoned In your Bank or Stock account for sixty days at least.

One also needs a work history of at least two years in the same field.

It's also critical that once in contract you are able to close the deal, by staying employed till
Closing. As the Bank will check that you are employed before they fund the loan.

Now in the event you are self employed, all of the above will apply but it then become more critical as to
What your Net Income is after expenses of running your business and what you qualify for.

Any other questions do let me know or call.
Happy Holidays.

Perry Mistry
Coldwell Banker

408-656-5343
Web Reference: http://www.ruthandperry.com
1 vote Thank Flag Link Sun Dec 23, 2012
You received lots of good answers here. One caveat to keep in mind is even people with excellent credit and stable jobs find the scrutiny of the process extremely stressful. If you have any "iffy" item in the past few years, such as a cash deposit you can't show the trail for, it can be a huge issue and result in no loan or a loan but at a higher rate. Not everyone is able to fully qualify for these super-low interest rates.
1 vote Thank Flag Link Wed Dec 19, 2012
You received good advice from Sheryl and Cindy. Understand that it isn't as simple an answer. Your debt to income, reserves, cash, and job type, all are taken into consideration.

I recommend you have a meeting with a mortgage professional. Keep in mind that you may also have a budget which is important to you.

Have an amazing day!
Web Reference: http://www.terrivellios.com
1 vote Thank Flag Link Tue Dec 18, 2012
Hi Kunal,

We have "Portfolio Loans" that work around the conventional rules, so if you are outside the box we may be able to help.
0 votes Thank Flag Link Thu Sep 19, 2013
As long as you do have the three bureaus' credit scores, you can go with 5% conventional financing.
Keep in mind that your total debt to income ration can NOT exceed 45% on conventional financing.
Conventional will go to a maximum loan amount of $625k.
FHA will go to a maximum loan amount of $725k.
More detailed answers for you: cgravelle@diversifiedmg.com
0 votes Thank Flag Link Tue Dec 18, 2012
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