Home Buying in 28214>Question Details

skongkham0277, Home Buyer in Charlotte, NC

what is minimum credit score to qualify for home loan?

Asked by skongkham0277, Charlotte, NC Tue Dec 6, 2011

what is minimum credit score to qualify for home loan?with 20% down payment.

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This is definitely a question for your preferred lender. However, I encourage you to look to other lenders if you do not get the answer you are looking for. Each lender is going to have their own set of standards and their own loan products that will have different requirements for each. The important thing to understad here is that if you don't qualify for 1 loan with a particular lender, then you may want to check the lender on the next block to see what they have.
1 vote Thank Flag Link Tue Dec 6, 2011
with a down payment of 20% I recently closed on a house with a lender where the borrower had a credit score of 500. generally the norm is 580 with them but have gone lower than that depending on the debt to income ratios and what is on the credit report
Web Reference: http://www.davedicecco.com
1 vote Thank Flag Link Tue Dec 6, 2011
Hi,
It really depends on the lender and on the type of loan you are looking to get. If going FHA, I have lenders that would accept a 580 middle score or below. With a conventional loan, your credit score will need to be higher and that requirement is driven by the lender you select. Lenders will also look at your debt to income ratio to determine how much you can afford to buy as well as your credit history. If you need a good lender and a good Realtor to help you, give me a call today at (704) 322-3710.
0 votes Thank Flag Link Wed Dec 7, 2011
While it is very important for you to know your credit score and understandable that you would want to know how low of a credit score could qualify you for a loan, it is very important for you to understand that your score is only one piece of the puzzle that qualifies you to be approved for a mortgage. There are many other factors that will be considered. What is your employment history? What is your income? What is your debt to income ratio? It is possible, in fact, to have a very high credit score and still not qualify for a mortgage. It is simply not as easy to get a loan as it was in the past. Due to the high number of loan defaults, underwriters are taking a very hard look at the credit-worthiness of potential borrows. Underwriting requirements have become quite stringent. The very best advice I can give you is to contact and meet with an experienced loan officer who will evaluate your situation and guide you through the process. Meeting with a lender needs to be your first step and not an afterthought! Best success! Kathleen Turner
0 votes Thank Flag Link Tue Dec 6, 2011
FHA: 640
Otherwise, each bank can use its own specific requirements.
0 votes Thank Flag Link Tue Dec 6, 2011
Hello, there are various different programs by different lenders. I know that Wells Fargo, with 20 percent down payment, will finance you with a 580 credit score. There are also other lenders that will allow you to purchase a home with a 580 credit score and only present a 3.5% down payment. You will have some options due to the 20% down payment contribution.

For any further questions, feel free to contact me directly at (704) 724-7943. I will be more than happy to also tell you about the down payment assistance programs as well as 100% financing options.
0 votes Thank Flag Link Tue Dec 6, 2011
Good morning!
One of the most important things you must have to qualify for a loan to Buy a Home in Charlotte, NC or SC, is a perfect payment history for the last 12 months- this means on time payments for EVERY bill and ALL accounts that are in your name and everyone else who will be on the loan. If you don't have this payment history, you need to start today.

We have recently helped Buyers with 12 months of perfect payment histories purchase homes - even though their middle credit scores were just over 580 FICO. Lenders look at the middle credit score. If you meet the criteria in the Trulia Blog "I have bad credit and no savings. Can I get a home or am I stuck renting?" (http://goo.gl/1gbem) and have a 580+FICO, you can almost certainly get a loan with 3.5% down and maybe less. We also know of several lenders that do not require a minimum credit score for income qualified buyers.

The down payment amount (e.g. 20%) will affect the total amount borrowed and therefore your monthly payment more than it will your interest rate. More info about credit scores is in the below web reference. We can also help you find lenders with good interest rates. If you appreciate an answer, please give "thumbs up". For the most helpful answer, please say thanks with a "best answer" click.
0 votes Thank Flag Link Tue Dec 6, 2011
With a larger down payment (atleast 5%), I have worked with a lender that can do an FHA loan with a 580 score. However, having the score is just the first step. Qualifiying also depends on what individual items are on your report.

I'd be happy to send you the name of a few lenders I use.

Amy Baker
Allen Tate Realtors
704.258.1459
Amy.Baker@allentate.com
0 votes Thank Flag Link Tue Dec 6, 2011
The safe answer to that question is about 640. There are a few exceptions for medical collections. There are also some programs out there for folks who have had some credit challenges but have a good amount of cash to pay toward a downpayment to offset the risk that a lender may be taking for someone with a credit score below the minimal desired level of 640.

If you have a credit score of 640 and no money to pay down there are still a few programs that will let you acquire a property for no money down, such as USDA, VA, or a few first time homebuyer programs offered through a limited number of resources.

If you would like the contact information for a local lender who has some programs of that nature please feel free to call me and I will be happy to assist you with that data. I also have a two page guide I have written for first time homebuyers that answers a lot of questions about the process. You may find that information helpful, as well.

Blessings upon you...
Jan Teel
TEEL Realty
704-641-0267 (cell)
0 votes Thank Flag Link Tue Dec 6, 2011
If you do an FHA loan.....some lenders can do down to 580
0 votes Thank Flag Link Tue Dec 6, 2011
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