Congratulations on your decision to buy a new home.
When I work with my clients, I review their credit report to determine what can be done to help increase their scores. The higher their scores, the better terms they will receive, whether we are looking at a 630 to move up to a 640 or higher or a client with a 730 score & increasing that score up to a 740 or higher. There are some quick fixes that are available to help increase your credit scores.
Out of the gate, we work with clients to approve their loans with scores as low a 580. Please feel free to contact me directly if you have any further questions, I'd be glad to help.
All the best,
Roswell Moore, CMPS
Certified Mortgage Planner
Sun West Mortgage USA, Inc. (FN)
NMLS Company ID: 3277 / Branch ID: 359295
8950 East Raintree Drive, Suite 200, Scottsdale, AZ 85260
Sun West Mortgage is a Direct Lender, Mortgage Bank where we originate, process, underwrite, fund, AND SERVICE our loans, in-house, with FHA (starting at a 580 score AND still only 3.5% down), FHA Streamline refinance loans (NO minimum credit score, NO appraisal required) Go Green rehab loans, HomePath, Investor Friendly (10 financed properties), VA, VA Refinance loans (NO appraisal required on IRRRL loans), USDA loans, Jumbo loans, Conventional loans, plus, we allow Repair Hold-Backs!
Your first step should be to get in touch with a reputable lender and get pre-qualified for a loan. This will not only give you an idea in what price-range to look but also, a pre-qualification from a lender is needed when an offer for a home is submitted.
Feel free to contact me. I will be glad to talk with you in more detail and put you in contact with a reputable lender.
Amy O'Rear, REALTORÂ®
2680 S. Val Vista Dr, Suite 101
Gilbert, AZ 85295
FHA minimum credit score is 530. New FHA policy requires a minimum credit of 530 to buy a home or refinance. In the old days FHA did not require any credit score. These changes went in to effect in 2010.
Borrowers with credit score above 580 require a 3.5% down payment. The funds can be a gift from a family member and a 6% seller's concession is allowed. Often, 12 months of rental history is required for credit score below 620.
If you have credit scores below 580 new FHA changes require a 10% down payment. All funds must be the borrower's own funds. No gifts are allowed and no seller's concession allowed. Many times 3 to 6 months reserves may be required.
As with most things, it depends...There are definitely loans out there for people with 630 credit scores. Some questions which need answering are: Why is it at 630? Have you had a recent adverse event (Short Sale, Foreclosure, Bankruptcy, etc.) which may require you to wait awhile before lenders will consider lending? How recent have other credit issues been (FHA is your best bet with that score, but they want a clean credit history for 12 months)? Do you have the needed funds for a down payment under FHA (3.5% for most borrowers)? ETC., ETC.
So, your best bet is to find a licensed mortgage loan originator (look for a NMLS # after their name) and discuss the particulars of your situation to determine if you can qualify now, or need to fix a few things in the short-term, or need to wait a bit longer...No one can say "Yes" without knowing your individual situation.
Bill Parker, Loan Officer
AZ Lic# 09011570
CPA--Licensed, no longer practicing
GenCor Mortgage Inc.
15730 N. 83rd Way, Suite 103
Scottsdale, AZ 85260
(O) 480-525-8496, EXT 743; (M) 602-565-3646; (F) 480-436-5226
MISSION STATEMENT: To create an unbelievably enjoyable experience for my clients, while guiding them through the most important financial transactions of their personal lives. My clients know me as their Mortgage Lender for Life. I truly appreciate your referrals.
If you think it's expensive to hire a professional to do the job, wait until you hire an amateur.
Red Adair, Oil well firefighter