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I am looking for a company that will give me a loan with a score lower than 620. ( My scores are 590, 600 & 613 ). I'm still in the middle of credit repair so I know my scores will go up, it just that there is a house on the market I'm really interested in so I'm hoping to find a company that will work with me. If you used first guaranty mortgage corporation or heard anything about it please let me know!! TY
Haven't heard of them but Wells Fargo says they will do 580, now whether anyone has actually closed at that score your guess is as good as mine.
Wells Fargo LIES... it's a gimmic. My mortgage is through FGMC. My scores were less that 620. They required a LOT of documentation. However if you are ok with the hassle, they have (so far) been good to me
Mocha, you actually closed with less than 620?? My LO said that banks say that they will be they generally get turned down in uw. It is encouraging to hear that it is possible!
thanks for the info!!
What docs did they require that a typical lender wouldn't have?
Due to a recent, unexpected change in on my credit reports, my score just dropped below 620 so I am also pursuing the possibility of a mortgage loan with sub-620 scores. I have found 5 different lenders that can technically accept a middle score of less than 620. Here is a list of the lenders and any additional rules or restrictions they apply to sub-620 loans:
Company | Bank of America | Wells Fargo | Embrace Home Loans | First Guarantee Mortgage Corp | Quicken Loans |
Additional Rules | Max of 35% back-end DTI | Min 5% downpayment | None known yet | None known yet | All collections over $500 must be PIF |
March 1st UPDATE: I have gone through UW with First Guaranty and received a conditional approval with them with a middle score of 612. So far, they have been really great., I am working through the conditions now and waiting for their feedback. I will update to let everyone know my final experience, but I am really happy so far
I sold a few items (totaling around $1000) on craigslist and FGMC said that I couldn't use the funds for closing b/c I didn't have proof that I sold them or their value (items should have been appraised prior to sale)... Who does that? I had to provide them with a copy of the craigslist posting and luckily I had the person sign a copy of the receipt for the items for my records. I had a great broker who spoke to the underwriter and got it all cleared up. I had to write not only a letter of explanation for any past credit issues, I had to write out my current budget AND write out my expected budget for after my home purchase. FGMC is "documentation crazy." They use nontraditional credit lines to help scores. Nontraditional, i.e. energy bills, child care, etc. So make sure if you plan to use them that you pay these on time b/c they do call the "creditor" to verify payment history or request a verification letter. I had only 4 conditions to clear, but they required a lot of documentation. Overall they are very thorough. I guess they have to be b/c they are lending money to consumers who are considered high risk. Overall it was aggravating more than difficult. It's like they were playing cat and mouse. They knew they were going to lend to me, but they wanted to make me sweat a little.
@Catacam wrote:Mocha, you actually closed with less than 620?? My LO said that banks say that they will be they generally get turned down in uw. It is encouraging to hear that it is possible!
My rate is pretty good too (ofcourse they are lower now). 4.75% (November 2011)
mocha - I am sending you a PM now!
For anyone that has used First Guaranty, can you please please PM me with your LO's contact information (if you recommend them)? I would really like to reach out to them to learn more about their sub-620 mortgage options, but I would really prefer to speak with someone that comes recommended, as oppossed to whomever answers the phone when I call. The sooner the better because I would really like to reach out to them tomorrow (Feb 22nd). Thanks!