Convetional loan help

[Warrior2000]

What determines a down payment with a convetional loan? We are looking at a home worth $340k. My credit is @ 660 middle score and my wifes is hovering at around 620. We will have 20k soon just wondering what they would be looking at...some of our baddies are coming off by the end of year and early next.

Our bills are 100 in CC's, 467 in car payment and thats all.

I make $67k/year and wife makes $82/year including bonus.

[Warrior2000]

Not everyone answer at ince please!

[Chitwngrl]

For conventional, you'd need a mid score of 700's I believe and a 10-20% down payment. You may have better luck with fha. We're in the process of fha right now. My broker said lender wants mid 640. I was 639, but went down to 627 I believe due to cc utilization.  Doing a rapid rescore now   Good luck with your journey!!

[BrianB_The_Loan_Professor]

For conventional the minimum down is 5% - so you would be fineas long as youhave the closing costs covered - 

The lower mid score will be used so your rate will be impacted since 620 is at the very bottom of the conventional loan range

If your fha loan limit is enough you may want to compare the two side by side

FHA does have life time PMI so it is a loan you would probably want to refinance out of later once the credit scores are higher

Brian

[Warrior2000]

FHA would be fine but we have a cap of $271k we can finance, but thanks for the insight

[StartingOver10]

Note that the PMI for conventional loans is priced based on the lowest mid-score. I am assuming the scores you gave are FICOs and not FAKOs.  It would be best if both mid scores were over 680 if possible.  Even better if you could get the scores over 720 (that is the sweet spot).

With 5% down your lump sum that you are getting is fine.

Do you have any idea of what is causing the 620 score? Have you visited the rebuilding section here on MyFICO? It might be something as easy to fix as cc utilization. Or sending GW letters or pfd's.  Check the rebuilding section to see what you can do with your wife to get her score up. 

[Warrior2000]

Yes, it's a bunch of baddies from years ago due to come off in 2015-2017. She has most of them. We've been rebuilding since 11/2013 where she started at 518.

[ezdriver]

Wow ... four posts and four solicitations. That has to be a record.

[StartingOver10]

Putting contact info in your post is a violation of the terms of our website. Please remove your contact info.

[Laura1369]

EZdriver,

i was was thinking the same thing!!!!