i am trying to buy a home for 400000 it wont go fha its in okla i have a 635 score and 50000 to put down what are my options

Asked by Rg2363, 73401 Tue Aug 10, 2010

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, ,
Tue Aug 10, 2010
@ Susan,

The FHA county loan limit is only $271,050 which is why Rg can not go FHA.

He can not go conventional because his current mid score does not meet PMI requirements so Rg needs to do one of the following.
1) Come up with 20% down, negating the need for PMI.
2) Bring up his credit score to qualify for PMI.
3) Look in one of the areas I mentioned so he can take advantage of the USDA program which doesn't require a down payment or mortgage insurance but will work with scores down to 620.
1 vote
, ,
Tue Aug 10, 2010
Hi Rg2363,

Your best bet it work with a mortgage banker/broker who can help you increase your credit scores in a short period of time so you qualify for a conventional loan.

The only other option with your current credit score would be a USDA loan but you would need to look for a home in Lone Grove, Tussy, Hennepin or Dickson.
1 vote
Jennifer Bla…, Agent, Owasso, OK
Thu Aug 19, 2010
Hey Rg:

Did you ever find a lender to fund your loan?

Jennifer Henning, Realtor
Keller Williams
0 votes
Suzanne Walk…, Agent, Oklahoma City, OK
Tue Aug 10, 2010
Matt and Scott have both given you good advice. Definitely check with a local mortgage broker and or your bank to see if they have conventional loans that will meet your criteria.

I'm assuming the property won't go FHA because of condition. Have you spoken to the agent(s) and/or seller in regards to getting the property in condition to go FHA? In today's market some sellers can be educated to the cons of not getting the property in good enough condition since the mass majority of buyers are using FHA loan products. The seller is eliminating a huge pool of buyers. I've seen banks on REO's originally say no FHA but then bend in some cases to liquidate the asset.

If the seller is unwilling/unable to get the property in condition to go FHA beware that a conventional appraisal may flag the same issues that FHA will. Now days banks are just loaning on you the borrower but also looking at the collateral (house) to ensure they don't get stuck with a problem in cases where a borrower bites off more than they can chew in terms of repairs and then just walks away.

Good luck!
0 votes
Matt Taylor, , North Carolina
Tue Aug 10, 2010
Hey RG,

To comment on Scotts advice although you may find a lender that is willing to lend on the home at 5% down you will have to find a mortgage insurance provider also. 660 is the minimum fico for MI these days so you are only left with an FHA or VA option. Since the loan amount exceed FHA then you are left with VA. If you are not a veteran then you are out of conventional options.

Your only other bet is to check with some local credit unions or banks and find out if they have a portfolio product that will fit your needs. Otherwise you need to save up an additional 30k so you can put 20% down or get to work on the credit to reach the minimum 660 range.
0 votes
Scott Godzyk, Agent, Manchester, NH
Tue Aug 10, 2010
If it wont go fha, simply try a conventional loan. Inmost cases it is only 5% down which is only $20,000 and within your budget. The only way you will be able to know what you will be able to quailify for, is to meet with a local and trusted mortgage broker, they can prequailify you at no cost, they will look at yoru credit plus your financials and let you know if there are any programs that you may quailify for.

Good luck with your mortgage

Please see my blog for more info. and tips on getting a mortgage
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