620 Lenders?

[Stiltzy]

So im on the road to 620 and Im now so close I can almost taste it (618 & waiting on a 1 agreed to PFD to come off along with 3% Revolving Util to report down from 11%). However, in speaking with a few local lenders they have 640FHA overlays, and while I should have no issue getting to that point before closing (August-September), I am working with a builder to start the process. I am in a bit of a time crunch as Im getting married in May and combining two families that would be too large for either of our current apartment complexes even looking at a larger unit. Time is of the essence getting started so that my new stepdaughter will be able to start high school in the zone we are moving to, and not having to switch schools at the semester. Unfortunately,  there isnt a zoning appeal that will work, so I need to start now. The only thing the builder needs is a preapproval, and wanted to know what major banks or even local lenders (nashville, tn) only have a 620 overlay for an FHA loan. Any and all help is greatly appreciated. 

[Booner72]

Academy Mortgage told me they could get me a loan at 620+, but I was able to get to 640+, so i can't say for certain that they could or could not.  But at least they are a broker and not just a bank, and they have more options for loans.  Wells Fargo is supposedly one of the banks that do lower (580+) and some have indeed made it that way, but I've also read really sad stories of WF falling apart at the last minute.

I'd always recommend a broker over a bank after my experience and the experiences I've read here.

If you are in Oregon, PM me.

[StartingOver10]

I recommend a mortgage banker rather than a broker.

A mortgage broker can tell you anything and doesn't have to back it up. Simply stated, the mortgage broker introduces the borrower to the lender and collects documents. They do not fund the loan. They may or may not keep up with underwriting. In my experience (and I've been working with mortgage originators/bankers/brokers for 30 years) the mortgage broker can be excellent or terrible. Most fall somewhere in between. A good mortgage broker is worth his weight in gold. Unfortunately, there are probably only a small percentage of the mortgage brokers that are good. (Just like Realtors - we have a wide variety of good to not good. Its part of both professions that your experience varies so much based on the education and experience of the individual professional.)

A mortgage banker funds their loans and has access to many lenders to sell the loan. So when you get an approval from a mortgage banker, it's an actual approval, not just words on a paper. If a mortgage banker tells you they can fund at 620, you can bank on it. (No pun intented). BTW, a mortgage banker also functions as a mortgage broker, its just that they put the money behind their words.

So, no matter who you get, a mortgage broker or a mortgage banker, you will want to check their references first to make sure that particular individual does what they say they can do. Good luck in your search.

[nymets010]

I have read on here that Frst Guranty Mortgage will do 580 mid scores. I am geeting ready to apply with them and my mid score is 591. I also have heard that Prime Lending will go down to 620.

[Booner72]

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@StartingOver10 wrote:

I recommend a mortgage banker rather than a broker.

A mortgage broker can tell you anything and doesn't have to back it up. Simply stated, the mortgage broker introduces the borrower to the lender and collects documents. They do not fund the loan. They may or may not keep up with underwriting. In my experience (and I've been working with mortgage originators/bankers/brokers for 30 years) the mortgage broker can be excellent or terrible. Most fall somewhere in between. A good mortgage broker is worth his weight in gold. Unfortunately, there are probably only a small percentage of the mortgage brokers that are good. (Just like Realtors - we have a wide variety of good to not good. Its part of both professions that your experience varies so much based on the education and experience of the individual professional.)

A mortgage banker funds their loans and has access to many lenders to sell the loan. So when you get an approval from a mortgage banker, it's an actual approval, not just words on a paper. If a mortgage banker tells you they can fund at 620, you can bank on it. (No pun intented). BTW, a mortgage banker also functions as a mortgage broker, its just that they put the money behind their words.

So, no matter who you get, a mortgage broker or a mortgage banker, you will want to check their references first to make sure that particular individual does what they say they can do. Good luck in your search.

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\\Thank you for explaining the difference.  Academy  funded the loan, then turned around and sold it right away (Which I knew they were going to do).  Does this still make them a Mortgage Banker??

[MBOhio2]

Maybe my experience isn't very representative, but as I was looking around, I found that a lot of FHA lenders would go down to 620. In fact, it seemed like about 1/2 had a minimum of 640 and about 1/2 had a minimum of about 620, so I would think that your options are pretty broad.

[Anonymous]

You should try embrace home loans. I just closed and my rate is 3.875. I had a mid score of 606 when I started the process in january. But they had me pay off two collections that were hurting me. So I ended up around 640, but they can do FHA down to 580. But if you have any collections over $1000 you will have to pay them off. I have contact info for my loan officer if you need it.