What credit scores do you have to have to qualify for a 5% down conventional loan for a home that needs to ne rehabbed, in lieu of using a 203k FHA?

Asked by Jody Kelly, Oak Lawn, IL Tue Feb 16, 2010

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Matt Bukovy, Mortgage Broker Or Lender, Chicago, IL
Tue Feb 16, 2010

The only renovation loan currently available BESIDES The fha203k is the Fannie Mae HomePath Renovation loan, which IS availble with 5% down, BUT it is limited to Fannie Mae Foreclosures listed on their website at http://www.homepath.com. You can, however, go down to a 660 score.

I do know of some individual investors who are doing construction and rehab loans, but the credit score would need to be perfect, (740+) and the down payment would need to be about 30%

Call with any questions.

Matt Bukovy
Wintrust Mortgage

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Jonathan Bla…, , East Atlanta, Atlanta, GA
Thu Aug 12, 2010
The Homestyle requires a 680+ for an owner occupant. However, anything under 720 and I'd recommend a 203k typically. The Homestyle is cheaper, more flexible and easier to close than a FHA 203K though, if you qualify you need to explore that option. Higher loan limits, no restrictions on repair, no upfront MIP like FHA... If your lender doesn't offer it you need to check out one that does.
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David Cruick…, , Palatine, IL
Tue Feb 16, 2010
The credit scores would need to be the same as with any other conventional loan (i.e There would be rate hits for anything lower than 740ish).


David Cruickshank
0 votes
David Cruick…, , Palatine, IL
Tue Feb 16, 2010

There is a program called Fannie Mae Homestyle but very few lenders offer the program. It is a conventional loan so the down payment amount would likely be 10% if it is the borrowers primary home and 20-25% for investors.

If you do decide to use the 203k loan then let me know and I can help you. Read my website at http://www.203kloanschicago.com.

Good luck!!!

David P. Cruickshank
Ardain Mortgage Corp
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