Trulia Community - Advice from neighbors and local experts

Find Your Community
We couldn't find that location. Please try again.
Get Expert Advice

Home Buying in New Palestine : Real Estate Advice

  • All5
  • Local Info0
  • Home Buying2
  • Home Selling0
  • Market Conditions0

Activity 3
Fri Mar 14, 2014
Simon Campbell answered:
To qualify for a traditional loan, you are going to need a minimum credit score in the 620 - 640 range though most require 680. USDA loans with a credit score of less than 580 are denied if you have been late on any payments. (Reference: http://www.rurdev.usda.gov/SupportDocuments/CA-SFH-GRHUnderwritingGuide.pdf)

There are other loan programs out there that may accept less. One of these is FHA. FHA's website states: "Minimum credit score requirements for FHA home loans depend on which FHA loan product the applicant needs. Generally speaking, to get maximum financing on typical new home purchases, applicants should have a credit score of 580 or better. Those with credit scores between 500 and 579 are, according the the FHA guidelines, 'limited to 90 percent LTV'." (Reference: http://www.fha.com/fha_article.cfm?id=200.)

What will really help you will be a good down payment. 20% is the normal but there are loans that require less - but the loan terms will not be as good either. Another option is a land contract or a rent to own situation. Both of these maybe a good move as a first home buyer.
... more
0 votes 2 answers Share Flag
Wed Nov 10, 2010
Monte Howell answered:
It really depends on the bank, the market area of the home, and the condition of the home. Banks will look at average value in the neighborhood and what the latest sales have been.

Monte Howell
President, Howell Custom Homes
317-902-3358
... more
0 votes 3 answers Share Flag
Search Advice
Search
Home Buying in New Palestine Zip Codes

Followers

44