hi my husband and i are looking into buying a home my credit score was 626 and his was 608 when we talked to a loan officer a couple weeks ago.

Asked by stephaniemorrow20, Covington, GA Fri Jan 4, 2013

since then we have settled with two debt agencies so that should either come off our credit or at least showed up as paid.we also have a credit card in each of our names and a loan we are paying off which is helping our credit.my question is who do we need to go through to get the loan?i have heard an fha loan would be best but have heard not to use some banks.so which one is best to go through?and does anyone know a round about on how much of a loan we would get approved for if he is only bringing in about 1500 a month?we are renting right now and paying $650 plus all other house bills.any information would be awesome as this is our first time looking into buying a home

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Marc D'Angelo…, , Roswell, GA
Wed Jan 23, 2013
I will be able to assist you. The first thing we would do would be to review your credit and see what is causing your scores to be so low. I would then put you into a FHA loan and based off of the income you provided I can also give you an additional $5000 towards the down payment for your home purchase and closing costs. Call me to go over your options.

Marc D’Angelo
Mortgage Banker
678.442.3405 Office
678.985.6834 Fax
404.925.8291 Cell
apply online: mdangelo.brandmortgage.com

50 Chastain Center Blvd. | Kennesaw, GA 30144
NMLS# 75615 | 658834
1 vote
William Pola…, Mortgage Broker Or Lender, Suwanee, GA
Tue Jan 8, 2013
Don't pay off any installment type loans as this will hurt your credit scores. If the balance is matching the limit, move forward. If it is not, paying it off will close the account and take away history of the line of credit. This pushes scores down. Paying down a loan helps. Paying off a loan and it closes hurts. Make sure to talk to Rodney BEFORE you paying anything off. He will consult you on how to proceed on the credit. You may hurt yourself and not realize it.

If your husband's income is disability income or social insecurity (just kidding), then his income may be grossed up to 125% of the $1500. With that score, figure to use about 35% of that amount for qualifying purposes. That's $525 a month. Subtract debts on the report (let's pretend zero). Subtract property taxes and insurance and mortgage insurance (around $150). That leaves $375 to qualify you.

Figure that for every $10,000 your payment is $50 a month (hypothetical of course since I don't know the rate being used). Divide $375 by 50 is 7.5 or $75,000 loan amount. If your score gets over 620, rate gets better. The next brackets are 640, 660, 680, 720, 770.
0 votes
Lee Hutchins…, Agent, Roswell, GA
Fri Jan 4, 2013
Hi Stephanie,
I would love to help you with your home search. Give me a call at 6783341240. I will refer you and your husband to several loan originators.
0 votes
Nancy Lambeth, Agent, Atlanta, GA
Fri Jan 4, 2013
Hello Stephanie.

It sounds like you have taken the right steps to prepare to buy your first home. An FHA loan could very well be your best option since only 3.5% of the purchase price is required for the down payment where a conventional loan would require up to 20% down. There are some down payment assistance programs that might help as well that can be used with an FHA loan. I can refer you to several excellent loan originators if you would like. They are more qualified to review your situation and advise you on how much you can afford and qualify for, and, they can issue a pre-approval letter which is needed in order to make an offer.

I would love to speak with you in detail about your plans and guide you through the home buying process. Please call at your convenience if you would like to discuss further. Oh, and by the way, as a first time homebuyer, you may not be aware that there is no charge for my services to buyers.

Best of luck as you persue homeownership!

Nancy Lambeth
Chapman Hall Realtors
0 votes
Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Fri Jan 4, 2013
For an FHA mortgage, most lenders require a 640+ credit score for the last 2-3 years now.

Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months. It is required that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.

The 3.5% down payment can be from the borrowers own funds or it can be gifted from a family member. Two months of reserves for the PITI (Principal + Interest + Taxes + Insurance) payment + HOA Dues will be required. This must be from the borrower’s own funds and not a gift.

Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
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