I just found that my credit score is 675. It is degraded from 758 in an year because I was not present in the

Asked by Vr, Mountain View, CA Sun Jun 21, 2009

US and PG&E didn't have forwarding address for me. Anyway. I am thinking of buying a condo by applying for a loan of 150K while putting 100K downpayment. Am I toast because of my credit score?

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6
Adrian Hunti…, Agent, SAN FRANCISCO, CA
Sun Jun 21, 2009
BEST ANSWER
With a 675 you can still get Conventional financing, you will just take a hit for the lower credit score. Instead of getting a 5.25% rate you will qualify with a higher interest rate. If you are buying a primary residence it may be better for you to do an FHA loan. By going FHA you will be closer to 5.5%, but that is still a good rate. In the mean time try to clean up your collection with PG&E and do a rapid rescore to boost your credit.
0 votes
Carlos Cruz, Agent, Saratoga, CA
Sun Feb 28, 2010
Vr, before you make your next move, I recommend you contact Ken Strey of CreditLine IQ @ (925) 265-8502. Ken specializes in credit restroration. He will be able to analyze your current credit report and be able to assist you with bringing your numbers up.

Bringing your credit up could take up to as long as 30-60 days. So you will need to take action now. If you are not sure you want to contact him, no problem. I interviewed him for my Realty Webcast you find on my site. The direct link is: http://www.carlosrafaelcruz.com/blog_and_updates/blogs/2010_…

Vr, please don't hesitate to contact me or Ken @ (925) 265-8502. Thank you and I look forward to hearing from you soon.

Carlos Rafael Cruz
REALTOR | DRE# 01865777

Intero Real Estate Services
12900 Saratoga Avenue
Saratoga, CA 95070

+1 (408) 786-5179 (Cell)
+1 (408) 863.3179 (Office)
+1 (408) 877.1595 (Fax)

eMail: realtor@carlosrafaelcruz.com
Site: http://www.CarlosRafaelCruz.com/
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1 vote
Charles Dail…, Mortgage Broker Or Lender, St Paul, MN
Sun Feb 28, 2010
Vr,

You are not toast. Based on what you're sharing with us, you won't have a pricing hit either. If you're taking a loan of 150K and putting down 100K, that would mean that your Loan to Value or percentage of the purchase price being financed is 60%. So long as you keep it there, you won't have pricing hits and it would matter if your score was 850. You'd get the same rate.

In the web reference below, I'm including the chart from Fannie Mae that shows what these mysterious pricing hits are. It's actually more likely that you'll have a pricing hit for a California condo because a lot of lenders have those.

Also, now that we know this, I don't think it's advisable to mess around with your credit content. Even common sense changes can have unintended consequences. For instance, sometimes when you pay off a collection a credit score can temporarily drop. This happens because even though you might be paying it off, an aged date associated with the collection can get refreshed to an up to date one and that can temporarily hurt believe it or not. It's stupid but I've seen it sink clients. Also, if you drop below 660 you'll have a pricing hit regardless of your down payment so stay put. You're good where you are.

Let me know if I can help you with your loan. There's a lot of other good people here too. You asked your question of a good group.

Regards,

-Charles Dailey
0 votes
Gilbert Rich…, , Santa Clara County, CA
Sat Feb 27, 2010
Not at all. You may get hit with rate adjustments, but you are nowhere near out of the ballpark of purchasing a new condo. I have a pre-approved client in a similar situation and he is out making offers as we speak.
0 votes
Marcy Moyer, Agent, Palo Alto, CA
Mon Jun 22, 2009
VR,
You can still get a loan but it will be at a higher interest rate and have more points than if you were above 740. You could also compare a conventional loan rate with your credit score to an FHA loan and see which is a better deal for you. The credit score requirements are lower with an FHA loan, but the costs tend to be higher. I can give you referrals for lenders if you are interested.
Marcy
Web Reference:  http://www.marcymoyer.com
0 votes
Jacob Varghe…, , San Jose, CA
Sun Jun 21, 2009
How soon are you planning to buy the Condo. We can try to do a rapid re-score and bring up your score.
Web Reference:  http://onewallstreet.com
0 votes
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