whats the lowest your score can be for getting a mortgage loan?

[Anonymous]

Loan to Value

[Anonymous]

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serenity72 wrote:
allright please fill the clueless one in what does LTV stand for?

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Amount you owe vs. amount the home is worth.

EX: $100,000 purchase price

       $40,000 Down Payment

       $60,000 Borrowed

       Equals >>> 60% LTV

[serenity72]

Thanks guys. Well this would be on a $190,000 house.

[Anonymous]

If you have 25 percent down/500 fico and a repo a year old... you can get a loan.

As for the arm or fixed... You can get either or but what will your DTI be at. Thats why some people get arms...

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hopeful wrote:

I heard a subprime lender say that he would approve anyone with any credit score and no income documentation as long as he had 30% downpayment.  With 20% downpayment, he'd approve just about anyone else.  Truth is, anything below 600 is now going to require a large downpayment and usually means you can only get an ARM, not a fixed rate. 

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Message Edited by OneMortgageGuy on 07-03-2007 04:27 PM

[Anonymous]

I am not trying to stir the pot, nor am I judging, however, I find it hard to believe that with a score of 500, a repo and a foreclosure that someone could get a loan.  However, I am not a mortgage professional, so I defer, but again, for curiosity's sake, what kind of interest rate would that be????

[Anonymous]

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dazednconfused wrote:

I am not trying to stir the pot, nor am I judging, however, I find it hard to believe that with a score of 500, a repo and a foreclosure that someone could get a loan.  However, I am not a mortgage professional, so I defer, but again, for curiosity's sake, what kind of interest rate would that be????

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I think with 25% down, most of the risk is eliminated.  If the mortgage company forecloses on the home, then they can sell it and wont lose much if any money.

[Anonymous]

Sorry, I missed the 25% down.  Still, WOW!!!.  I jumped through hopes to refi my current ARM and I had no repos, no foreclosures, scores right at 600, no mortgage lates, just a dismissed BK with old stupid stuff on the reports, nothing big and the refi process was no walk in the park.  LTV was great, DTI was 40% and I had to practically sell my first born to get a decent rate...I still can not imagine the rate even with 25% down...I'm having palpitations just thinking about it....

[serenity72]

Ty what I do want is a prime loan though. I am thinking I would be better off renting this house now, then going into a mortgage a year from now. Is it possible to get my score in the 600s in a year? With 25% wouldnt the payments still be pretty high on the mortgage? TY

[serenity72]

repo is from 2003. Foreclosure from 2001/2002

[Anonymous]

serenity72,  Again, I am not a mortgage professional, but if you want an opinion, I'll give you mine.  If you could get into a prime loan a year from now and put 25% down on 190K, then your payments at 7% [estimated prime for next year - could be off] would be $935, taxes and ins not included.  I don't know what your taxes are in your area, but here they are about 7K a year, which adds approx $600/month to my mort payment.  If you did the loan now and got a subprime rate at say 11% [I could be way off with the suprime rate], payments would be about $1326 without taxes and insurance.  Personally, I would wait until the scores got a little higher, as I think you would have a better chance at a decent rate a year from now.  As far as getting your scores up in a year, I think that it is totally possible.  That foreclosure from 2001 should be dropping off soon and perhaps you could make some noise to get it off sooner.  The repo from 2003 has aged quite a bit and I don't know exactly what recourse you may have, but I am sure there is advice here that you will get that can help mitigate the damage to your report from that.  JMHO.