10-12-2010 06:32 AM
I was wondering if anyone has had success using NFCU Home Buyers Choice loan product. I'm considering giving it a go if NACA doesn't work out for me.
I'm trying to find out if there is a credit score requirement to qualify for the loan. I've done tons of searching on the internet and all I can find related to credit is that it requires "good" credit. Unfortunately, I don't know how NFCU defines what is considered "good" credit. Last I checked my mid-score it was 711 so I think I'm good on that front. However, my fiance has a mid score of 609 which I'm not so sure would make the cut. We are both members with the NFCU, but it is hard to get specifics unless I complete the application which is not what I'm ready to do at this point.
So...has anyone used the NFCU 100% mortgage product and if so if you could share your credit score and experience that would be great.
10-12-2010 07:52 AM
I am not sure as well, but I Know most credit unions are at 640-660 minimum FICO for any loans. If their website denotes "good credit needed, expect that minimum for that program to be higher than their minimum for FHA type loans so I would guess more like 680-720 to be considered good. (generally good credit is considered over 680 or so....) I any case, there are very few (if any) programs doing loans at 600 midscore except possibly NACA or some random banks. I would put money that NFCU is going to require much higher FICO than that for a 0 down program.
10-13-2010 09:38 AM
I can confirm that the minimum FICO is 660. I was presented with this information during a session with the NFCU mortgage specialist.
10-19-2010 12:04 PM
Thanks again for the response. I really appreciate it.
I'm planning to rent our my current home in January 2011 and I'm looking into other options to purchase another home in June/July 2011. That'll give me enough to save up a few months reserves. Now I just have to pray that my rental house appraises for 25% more than what I owe.
10-19-2010 12:29 PM
I may be way off based here, but I did not think that NACA and such programs could be used for second home purchases.
Also, I would guess the same with any 100% down programs like the NFCU one.
I thought typically with second home purchases there are higher FICO and down payment restricitons. The 25% equity I thought had more to do with whether you could count rental income towards DTI.
10-20-2010 04:40 AM
@mickie...you're correct about NACA. I've contacted them and my home would have to be sold before I can take advantage of the NACA program. I can attend a workshop to being the process though, but before I could actually purchase I'd have to sell my current home.
As far as NFCU goes. I've contacted a mortgage consultant and was told that I do not have to be a first-time home buyer to use their Homebuyers Choice Program. I'm not sure if this means that I can only own one home.
My plan A is to list my home immediately after the holidays with hopes that it sells. At this point I'd be more than happy if I could break even so that I could just move on to a safer (in my opinion) neighborhood. My plan B (which I hope I don't have to resort to) is to rent my current home out if necessary. The issue here is that I doubt my home would appraise for enough to meet the FHA 25% equity guidelines which means that I would need to qualify for both mortgages on my current salary.
I'm just looking into all my options as I no longer feel comfortable or safe in my current home.
If you have any additional ideas that I could consider, I'm definitely all ears and appreciative.
10-20-2010 08:15 AM
Whether or not you have to be a 1st time home buyer will have nothng to do with if you can purchase a second home. Again, especially if you have little equity in the first home, I doubt you will be able to use any low down payment loan program. They have these restrictions to keep people from buying a new home and then walking away from their first one. That is why they generally require the equity in the first home and a reasonable down payment on the second mortgage. In any case, you should ask NFCU if you can use thier program for a second home purchase, and if they have higher FICO, reserve, and down paymetn restrictions for second home purchases (while also noting that you intend the new property to be your primary residence.
At a minimum, they are likley going to want to see several month of both mortgage payments sitting as reserves, they may also want higher FICO as well as a higher down paymetn such as 10% down on the new purchase or something. Jusk ask them and tell them you want a realistic answer, not a best case scenario. UW's are getting pickier by the day so while best case wouldbe great, you need to plan on middle of the road requirements (especially if one of your FICO's is already a bit low and you have little equity in the first home)
Good luck with it.
10-27-2010 07:28 AM
just a quick updated. I was told that since my current mortgage is conventional, I can qualify for FHA. However, I would still have to qualify for both mortgages with my current salary. I would still need to meet all other guidelines such as DTI, reserves, etc.....
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.