Mitzz-tee,

First off, realtors should not be answering this question, even if they think they know the answer or have lenders that can help. I say this for several reasons. The main ingredient is false hope.

First off, the first person below... FHA doesn't have credit score requirements. Only the investors and lenders do. FHA says that you can even have a credit score under 500, but that you have to put 10% down or more.

Secondly, any investor or lender that goes under 620, have large pricing hits... higher rates and higher fees. This is a fact and not an opinion. Many just try to sell you the fact that it can be done. Yes and no... just because you have a lower credit score doesn't mean that it will happen either. Not only are the rates much higher, but the guidelines are much stricter.

Others will say, do it, so you can get the tax credit. And don't worry about how high the rate is, you can just refinance it later. Let me point out a few things with this statement. Okay, so your rate is a half percent higher and it cost you about $2,000 more to get this mortgage, because you have a credit score under 620. On a $250,000 mortgage, your payment is going to be about $80 more a month. Might not seem like a big deal... but let's assume this... in 6 months, you can't refinance for several reasons.. either your credit scores still didn't get higher... or mortgage guidelines got worse... now you are stuck with that mortgage. Just in 2 years, that is about $2,000.. plus the $2,000 it cost you upfront because of the lower credit scores. Gee, that is $4,000, which now leaves you with $4,000. In 2 more years, it costs you another $2,000, so now that tax credit is $2,000.

Another issue.... they tell you, don't worry, refinance in 6 months or longer... okay, what happens if rates go up a half of a percent. Now you are stuck with what you have. Also, remember this... it costs money to refinance, no matter who you talk to. The average is about $4,000 in cost, depending on how much you get back from your escrow account and what kind of rate you end up in getting. Just too many unknown variables that you have no control in the near future.

My whole point... is it worth the gamble to buy now to get that $8,000, that might be eaten up down the road. Wouldn't this be like robbing Peter to pay Paul?

Okay.. now to your question, since it was never really answered. No, you don't need a credit score of 700 or higher. Even on a conventional mortgage. It all comes down to your down payment and the type of property. If your scores fall between 620 and 614, a good professional can usually look at this for you and help get these scores to 620. I would be glad to look at this for you. And because your scores are 620, the best mortgage, even with 20% down, would be a FHA mortgage. Some people might argue with me about this. But here is some proof with facts. http://activerain.com/blogsview/1017156/FHA-Loans-vs-Convent…


Overall, I would love to help you with your situation. If you seek advice or help elsewhere, just be careful in what is promised. The bottom line is that we all get our money basically from the same place when all said and done.. it just comes down to who will educate you on this and who will be upfront with you.

Thanks,
jeff


Jeffrey J. Belonger
Area Manager

Infinity Home Mortgage Company, Inc
Processing : 800-587-2762
Cell : 609-440-5133
Fax : 775-361-6619


Good Faith Estmates - All you need to know - http://activerain.com/blogsview/1082156/good-faith-estimates…


Profile : http://www.activerain.com/jeffmortgageman


"The referral of my service to your friends and family is the highest compliment I can receive."

Hi Mizz-tee. You can actually purchase a home with a credit score in the 500'sdepending on job history, etc. I have several lenders who can assist you. If you are planning to buy soon, you may still be able to take advantage of the $8000 tax credit and own a home with little or nothing out of your pocket. Let's talk.
Robert Greenblatt
Keller Williams, Cherry Hill
856-685-1660

You may be able to still be approved for a mortgage with a lower credit score. There are FHA and USDA housing loan options available in Egg Harbor Township. Also USDA Direct loan and not so dependent on credit score. Please contact me and I will connect you with a mortgage representative that can assist you.

Best wishes,

Matt

You've posted your question in home buying. I think if you put in the mortgage and financial questions you'll hear from some very qualified mortgage people that can answer this questions. While one score might work for an individual, it might not work for another. Your need a mortgage rep!

Good luck, I hope you able to get into your new home quickly, to take advantage of the tax credit!

Laura Giannotta
Keller Wiliams Realty - Atlantic Shore

FHA financing allows for scores down to 560. The rates are the same as conventional but you will up front and monthly MI which is determined by the loan amount.