I am 25, had bad credit, have been working hard to correct it. I have a score of 610 and gross 2000 a month.

Asked by Megan S Faulkner, Bowling Green, KY Tue Aug 28, 2012

I amlooking at a house that is around 130,000. Would I be considered for this and if how much estimate a down payment would be for me?

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Gary Wantland’s answer
Gary Wantland, Agent, Bowling Green, KY
Tue Aug 28, 2012
Hi Megan,
It will take a score of 640 to get approved for a loan and as far as approval to purchase a home for around 130,000 it will depend greatly on how much debt you currently have. Different loans do vary but most don't want you to have more than about 43% of your gross income going out including your house pmt. that would put your total monthly pmts for car pmt, credit cards, house pmt, etc. not exceeding 860.00 per month. I would be happy to help you with finding an affordable home. You can email me at gary@wrhuntgroup.com or call 270-782-9088
Gary Wantland
Weichert realtors
0 votes
Ryan Shanahan, Agent, Bowling Green, KY
Tue Aug 28, 2012
Congrats on getting your credit up. I know that is very hard and it takes a lot of motivation to do so. I would be more than happy to help you out to find the home that suites you best. If you want, call me as soon as you can so we can get started. 270 784 4221 or my email is Ryan.shanahan@coldwellbanker.com
0 votes
Joel Lobb, Mortgage Broker Or Lender, Louisville, KY
Tue Aug 28, 2012
KHC’s First Mortgage Loan Products

Federal Housing Administration (FHA)

•Minimum 640 credit score required.
•Financing to 96.50% of lesser of sales price or appraised value.
•All KHC DAPs and other KHC-approved secondary financing may be used.
•Maximum 6% seller-paid items.
•Maximum ratios of 40/45 with AUS approval.
•FHA’s Appraiser Independence rules apply. (see page 4)
•All borrowers must be scored by TOTAL and receive approve/eligible or accept/accept.
•Lender must follow the FHA maximum mortgage limits for particular area – see
Upfront and Annual Mortgage Insurance Premiums
30-Year Loan Term
LTV less than or equal to 95% 1.75% annual 1.20 monthly
LTV greater than 95% 1.75% annual 1.25 monthly


• Minimum 660 credit score required
• Maximum loan-to-value (LTV) ratio is 80%.
• Maximum ratios 40/45 with AUS approval.
• No down payment assistance products may be used. Borrower must meet down payment requirements with their own
funds or a gift.
• Federal Home Loan Bank monies allowed once borrower meets the 20% down payment requirement. Must be entered as
subordinate financing in DU/LP.
• Pre-purchase education required as per AUS findings.
• Not available for manufactured housing.
• Appraiser Independence required (see page 4).
• KHC does not presently have a product for 81% LTV or greater.

Rural Housing Services (RHS)
Minimum 640 credit score required.
• Financing to 100% of the appraised value, plus guarantee fee of 2.0%/0.3% annual fee.
• All KHC DAP programs and other KHC-approved secondary financing may be used.
• No maximum on seller-paid items.
• Ratio requirements and guarantee fee per agency guidelines.
• KHC will accept Government Underwriting System (GUS) findings, including reduced documentation and, with
approval, expanded ratios up to 40/45.

Veteran’s Administration (VA)

•Minimum 640 credit score required.
•Financing to 100% of the lesser of the appraised value or sale price.
•All KHC DAP programs and other KHC-approved secondary financing may be used.
•Maximum 4% seller-paid items.
•Ratio requirements and funding fee per agency guidelines
•Maximum ratios of 40/45% with AUS Approval

Joel Lobb (NMLS#57916)
Senior Loan Officer
502-905-3708 cell
502-813-2795 fax

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
0 votes
Michelle Smi…, Mortgage Broker Or Lender, Louisville, KY
Tue Aug 28, 2012
A loan officer would still need quite a bit of info before one can determine if you can qualify. Typically, a middle credit score of 640 is a good starting point to qualifyiing score-wise, but we also need to see the tradelines appearing on your account, payment history as those matter as well. Have you had a loan officer take a look at your credit to get you on track and in a position to buy? Most don't charge anything for you to apply and have them advise you if you are missing anything. It's best to have them look LONG before you intend to buy, in case it takes you a few months to get in a poisition to be approved. (Credit issues can take months to resolve.)
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