Financing in Nassau County>Question Details

jayhaygray,  in New York

Conventional Programs for ~650 Credit? DELRAP Approval Process?

Asked by jayhaygray, New York Mon Jun 10, 2013

I'm looking to buy a condo in Long Island with ~650 credit. I can easily qualify for an FHA loan, but no available condos are FHA approved. Are there lenders that can do a conventional loan with ~650 credit? If not, is anyone familiar with the DELRAP process to get a condo FHA approved? Is it worth the headache? Will it weaken my offer?

Help the community by answering this question:


Jay, on a Conventional loan, you CAN get approved with a 650 credit score, depending on your down payment. I do tons of condo loans in the NYC and Long Island markets, 650 credit scores are acceptable without having to go FHA, if your down payment is large enough to NOT need mortgage insurance (not necessarily a 20% down payment).

If your down payment is less than 20%, you'll find that a good percentage of condos out there will NOT qualify for conventional financing due to a lack of annual reserves budget. So this is a HUGE problem for borrowers who put less than 20% down payment with a conventional loan. Turning a condo that is not FHA approved, into an FHA approved condo, I have not seen happen in my 10 years doing loans. Is it possible? Sure, but it just doesn't happen.

Consider meeting with a lender who is experienced with condo financing. It's a huge mistake to work with a Loan Officer who has never done condo loans. Because Long Island is mostly single family houses, it's difficult to find a condo experienced Loan Officer.

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648 Cell
(631) 659-2011 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Mon Jun 10, 2013
Believe me I know how hard it is to find a condo which is FHA Approved in LI. With your FICO you can absolutely obtain conventional financing; at least with the lenders I work with. All you would need is 5% down assuming the loan amount is under $417,001.

I would definitely recommend we speak about your upcoming purchase to ensure a smooth experience from start to finish. Please contact me at your earliest convenience so we may weigh out some options to best determine a plan of action.

Kindest regards,

Paul F. Marzolla
Sr. Mortgage Consultant
(201) 957-6768
0 votes Thank Flag Link Wed Jun 12, 2013
Be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously, therefore if you haven't done so yet, visit with any licensed loan officer; if your credit score is in fact 650 and depending on your downpayment, a conventional loan may be a possibility.
0 votes Thank Flag Link Mon Jun 10, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer