I'm trying to buy a condo in Chicago w/ 10% down. Is it possible to get a conventional loan w/ a credit score?

Asked by Eric, Chicago, IL Thu Apr 2, 2009

around 650? Folks are saying you need a score of 720 or better to get PMI.

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William Chu, Mortgage Broker Or Lender, Elmhurst, IL
Thu Apr 2, 2009
Eric, your need to mortgage finance your condo purchase with only 10% down payment and your credit profile will most likely cost you more in terms of higher rate and perhaps more in lending fees. For example, any mortgage on a condo that is more than 75% LTV are subject to a higher rate or require a 0.75% origination point. If the condo is or can be FHA approved, you may want to look at FHA mortgage financing.
2 votes
rebecca fini…, Home Buyer, Compton, CA
Sat Apr 11, 2009
William Chu who has answered you is a mortgage lender who I have great respect for. I know Bill and he is both experienced and easy to work with. Best of all he is honest and up front. I would include him on your lender shopping list.

Mark Karambelas
Baird and Warner
0 votes
Sean Cochran, Mortgage Broker Or Lender, Naperville, IL
Sat Apr 11, 2009
Hi Eric. Please give me a call if your are still shopping around for a loan.


0 votes
Eric Marcus, Agent, Chicago, IL
Fri Apr 3, 2009

My lender has a program that might allow you to only put 5% down with a credit score of 600+. Its not a conventional loan but it has great rates. There is no income limitation if the area you are buying is considered a low to moderate income census tract. If the census tract is not low to moderate income, you could only have an income of under around $57,000.

Its a little complicated to describe in an email. Give me a call and I will be glad to go over the details. It is the best thing I know of out there because it does not have some of the same limitations as FHA financing.

Eric Marcus
ESM Realty
Real Estate Professional
Your Real Friend in Chicago Real Estate
0 votes
Kurt Clements, Agent, Schaumburg, IL
Fri Apr 3, 2009

Check with your realtor or mortgage lender and see if the condo in question is FHA approved. If the condo is not FHA approved, you might be able to get a 'spot' loan. FHA will approve individual condo loans if the associaltion fills out a questionaire and the answers are within FHA guidelines.

As far as your score goes, it's too low for conventional. William Chu's answer was correct when he stated you are going to pay more on a conventional than an FHA when it comes to condo's (assuming anything less than a 25% downpayment) - even if your score was higher.

Finally, when it comes to your credit scores - any mortgage lender that pulls your score within 14 days of the initial inquiry (from a mortgage lender) will not hurt your score. This is a safeguard the credit bureaus have built into the system. They realize that consumers will shop lenders, and this allows the consumer to shop without hurting their score.

If you want me to help you determine if your condo is FHA approved, let me know. My contact information is listed below. Good luck!

Kurt Clements
Senior Vice President
GSF Mortgage
3933 75th St
Aurora, IL 60504

Office: 630.806.7016
Fax: 630.723.5233
Cell: 630.430.1091

0 votes
Christopher…, Agent, Chicago, IL
Thu Apr 2, 2009
Dear Eric,

I'd suggest talking to a few mortgage lenders about what types of programs you might qualify for. I'd suggest that you pull your own credit scores before talking to any of the lenders, and you can then inform the mortgage lenders about what your scores were before they have to pull the scores themselves. If multiple lenders are checking your credit scores, then your scores may go down slightly. In a market like this, you want to protect your scores as much as possible- even a few points on your credit score could mean the difference between an affordable rate and an untenable rate.

I do have a number of lenders that I work with that I trust whom I could refer you to. Let me know if you'd like a list of them, and I can email them to you separately (or post them here if you'd prefer). Good luck.

Christopher Thomas
Broker Associate, Sudler Sotheby's International Realty
773-418-0640 (cell)
0 votes
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