Mortgage Loans

[ScottsdaleDad]

Does anyone know what the minimum FICO score is for the Navy 100% mortgage program? I have a mid score of 602, but I just paid my revolving debt down from almost 100% total util to 40% (1 is 55% and the remaining 6 are 0%). I'm hoping my scores will improve 40-60 points, but I don't know if that will be enough. 

I've asked Navy the minimum and they won't tell me. I would especially be interested in hearing from anyone who has been approved recently for this program with a similar score. What debt to income ratios and rates did you get?  

Thanks for your help.  

[formy3kids]

Just applied for that program with a mid-score of 666 and was declined. Advised by rep that this was on of the most difficlut loans to be approved for

[esme]

I am also considering this program vs. FHA.

My friends (who are also buying a house this year) and I both called NFCU's mortgage department, and every time, we each get conflicting information. But compiling all of the information that we have gathered over the past 6 weeks, here are the minimum requirements:

1. Minimum middle credit scores of 680 (required of both applicants if applying with a spouse)
2. Minimum middle credit scores of 720-750 to avoid 0.5% interest rate bump. (I say 720-750 because we were told different things depending on the day we called and who we talked to), I assume this will depend largely on whether your underwriter at closing wants to be generous that day.
3. No reserves required if purchasing a home < $417K
4. Six months of reserves required (P+I+T+I+HOA fees) if using their 100% Jumbo HomeBuyers Choice loan, basically any loans above $417K
5. They will count 60% of the value of any 401(k) in the applicants' names
6. Maximum 6% seller contribution towards closing costs
7. Maximum 3% gift contribution (by family, close relatives, etc.)
8. 1.75% funding fee - cannot be rolled into mortgage
9. 1.00% loan origination fee
10.  0.75% discount points

I think that's it. Like I said, we keep getting conflicting information depending on who we talk to. My friends are actually planning on going through a formal application through NFCU this week, so I might know more in a few days/weeks. But I think that the reason why these minimum requirements aren't documented anywhere on some sort of brochure is because NFCU reviews everything on a case-by-case basis, so they will make special considerations if they think the customer is good for it. Hope this helps.

[ScottsdaleDad]

Thanks. This is great information, and much more than I've been able to get. I think both of our mid scores will be above 680 once the CRA's report our debt payoffs. I'll apply once everything updates.

[esme]

Good luck and please update us with the requirements you had to meet when you go through the application process. If I get any updated information from my friends' app I will update as well.

[ScottsdaleDad]

I definitely will.

[olivia3636]

What ever happened with your application, I am thinking about applying with mid-score being 695, and I am just wondering if it is worth it?

[K_J]

Just curious, What are the goods of this program over USDA or FHA?

[Draco007]

We looked at this mortgage option recently too.  The LO at our branch in San Diego didn't give out much info without actually submitting an application, but she did say maximum DTI was 45% or lower, they want to see 6 months of PITI in reserves and above  the low 700's for both mid Ficos.

My mother is refinanced with Navy Fed and their underwriting process is a bear.  We've decided to abandon this loan option and just go with a mortgage broker because of the difficulites she had with a simple refinance.