With a 660 FICO the doors are open to just about every mortgage product out there; at least with the lenders I work with. While the score will not directly impact approval, it will play a role regarding interest rate / pricing. Depending on other aspects, such as income & monthly debt, it could affect the buyers Debt-to-Income (DTI) ratio which in turn could have an affect qualification.
I review many credit reports on a daily basis and can tell you, from experience, the score only tells half the story. I find that the content within the report is of far greater importance especially when the file enters underwriting. A single overlooked aspect can create massive delays, even denial, which is why it's imperative to choose a mortgage professional who thoroughly understands ALL underwriting guidelines and knows what their doing.
If you'd like to run a specific scenario by me please don't hesitate contacting me directly at (201) 957-6768 or via email; whichever is easiest. I'm here to help.
Paul F. Marzolla
Sr. Mortgage Consultant
Its actually good and bad if you ask me. A five percent debt ratio means a couple things. Either your young and dont have alot of debt, or you have a job that pays an outstanding yearly salary above and beyond the average person. If you dont have alot of debt it also usually means you dont have alot of credit and therefore probably a lower then average credit score which is a major downside. If you would like to be more specific with your question as to what it is you really want an answer to i can get more specific with my answer.... more
You may wish to contact Sallie Mae direct for credit guidelines before applying--see link for additional information--