Home Buying in 36535>Question Details

Connie Potter, Home Buyer in Robertsdale, AL

What is the minimum credit score requirement to qualify for a home loan?

Asked by Connie Potter, Robertsdale, AL Wed Sep 12, 2012

My score is ok but my fiancé is working to improve his score. Is there any way we can get on the same loan using my part-time income and his full-time income even if his score is under a 600?

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4
Mary McNair’s answer
Thanks, Larry, for emphasizing the importance of working a real estate deal through a Realtor. There are so many details to be figured out, with issues related to financing being the biggest.

Having someone to coordinate efforts with the lender of your choice is key. The more professionals you have working on your behalf, the better.

I would obviously love to be that Realtor. As you can see from the recommendations under my profile, I work tirelessly to help a deal happen if possible. In fact, my newest recommendation is from a local loan manager with whom I worked very closely to pull together a deal that had several obstacles, but we worked as a team and closed last week.
0 votes Thank Flag Link Wed Oct 3, 2012
Connie,
With the new regulations in the mortgage industry you must have a credit score of at least 640. When you apply for a loan your credit will be pulled from the three credit bureaus and the middle score is what you go by. Both of you can be on the loan, but the lowest of the two middle scores is what they go by. If you credit score is below 740, then you start to get into higher interst rates and higher PMI. (PMI is the private mortgage insurance you pay if you do not put down 20% of the purchase price).
My suggestion is for you to contact me and I will pull your credit, go over it with you and show you ways to bring up your scores. Also try to save as much money as you can for down payment and closing cost.
We do offer a few programs that will give 100% fiancing and most sellers will help pay the closing cost.
Your Realtor will know how to wrtie this into the contract, so please contact a Realtor in your area before trying to negociate with the seller, you will save money.
Larry
251-990-5897
Home Mortgage of America
0 votes Thank Flag Link Wed Oct 3, 2012
This is a loaded question! There are so many variables in answering.

A huge factor in determining your ability to get a loan is your debt-to-income in addition to your FICO score.

Another is how long you've had your current employment and being able to prove you have a dependable source of income to take on a loan.

I keep recommending that folks contact Baldwin Housing Alliance (251-279-0461, http://www.baldwinhousingalliance.com) for free financial counseling services with the ultimate goal of helping you get your buying power where it needs to be so you can walk into a lending institution ready, willing and able to get preapproved for a loan and ready to go shopping for a home. They also have information about the USDA loans and down-payment assistance programs available to those that qualify.

Call me when you're ready and I'll help you find the home that fits your needs and budget.
0 votes Thank Flag Link Wed Sep 12, 2012
Hi Connie,
It all depends on the loan program. Each mortgage program has different minimum credit score requirements.

For an FHA mortgage, most lenders require a 640+ credit score for the last 2-3 years now. Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months. HUD does require that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.

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.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
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) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes Thank Flag Link Wed Sep 12, 2012
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