Conventional loan with 5% down payment for high income with weak credit score?

Asked by Summit House Hunter, Richmond, CA Mon Dec 28, 2009

I am looking for a home at around $335,000 but have a relatively weak credit score (647). I am working on the credit score (I was shocked to find a tax lien on my report that I was completely unaware of), but don't have time to wait months for credit scores to change. I have a high, stable income ($100k for more than 2 years) and have saved enough for an approximately 5% down payment. One lender I spoke with said with my score I would need a 20% down payment for a conventional loan given my credit score. Am I out of luck other than going through FHA (which is capped at $270,000 loan in my area and therefore not much of an option for the house I really want)?

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Diana L. Fra…, , Lees Summit, MO
Mon Dec 28, 2009
Getting a loan is certainly a little more difficult these days, however, there are still some lenders out there that have the experience and creativity in getting this done. Are you aware of the tax credit that you may qualify for? As a Real Estate Agent I am very experienced in financing options and in getting creative with the Sellers, if that interests you. Lee's Summit is my expertise area. If you are not currently working with a Realtor feel free to call me and we can discuss further.

Diana L. frank
816-554-SELL (7355)
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Ben Edsall, Agent, Kansas City, MO
Mon Dec 28, 2009
You are about 13 points low for most conventional loans. If you can pay off the tax lien and get a quick re-score you can probably qualify with no problem.

If you are a veteran or have access to VA you could likely qualify for a VA loan.

I have a great lender who often works with folks to get the credit straightened out. If you are interested, contact Jason or Geoff at, they are located in Lee's Summit.

D. Ben Edsall
Broker – ARM, AEREP
Turn-Key Properties LLC
7312 E 67th St.
Kansas City, MO 64133
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The Sherri O…, Agent, Blue Springs, MO
Mon Dec 28, 2009
Just spoke to my other lender at Community America and he has a couple of options. Please contact me and I will give you his info.

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The Sherri O…, Agent, Blue Springs, MO
Mon Dec 28, 2009
Unforetunately,the MI companies will not insure anyone below a 680 on conventional. I spoke with 2 of the lenders that I work with and both told me the same thing. FHA is the only option at the moment unless you can get your score up. You actually may need to be over 700 to only need to put 5% down. If I can be of any further assistance do not hestitate to contact me.
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