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lender that will accept a minimum 620 score for a first time home buyer fha Massachusetts

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Rick9811
New Member

lender that will accept a minimum 620 score for a first time home buyer fha Massachusetts

I am new to this blog forum. My wife and I are looking to purchase our first home. We currently make around 125k a year combine. We have total monthly expenses of around 1600. Looking to purchase a home no higher then 300k. My current myfico equifax score is a 646 and myfico transunion is a 666 ( I am aware my transunion score is not accurate with the current lender guidelines, any idea what my true transunion would be?). My wife's is around the same. My wife had one collection on her account but we paid it in full back in march. We have not been late on a payment in over a year. We live in central Massachusetts and we are looking for a lender that is well recommended. Can anyone help?
Message 1 of 9
8 REPLIES 8
lpayton
Regular Contributor

Re: lender that will accept a minimum 620 score for a first time home buyer fha Massachusetts

Wells Fargo.  Good luck. Smiley Happy 

Message 2 of 9
Rick9811
New Member

Re: lender that will accept a minimum 620 score for a first time home buyer fha Massachusetts

any other lenders then Wells Fargo, I have heard nothing but bad things with them

Message 3 of 9
Rick9811
New Member

Re: lender that will accept a minimum 620 score for a first time home buyer fha Massachusetts

Even a good mortgage broker would be helpful

Message 4 of 9
terminalhockey11
Valued Member

Re: lender that will accept a minimum 620 score for a first time home buyer fha Massachusetts

FHA Loan has a 620 FICO program, however it is restrictive and considerably less lender credit.  

Message 5 of 9
Rick9811
New Member

Re: lender that will accept a minimum 620 score for a first time home buyer fha Massachusetts

What do you mean by restrictive less lender credit? With the scores I show above which are above 640 is underwritting more flexible?
Message 6 of 9
terminalhockey11
Valued Member

Re: lender that will accept a minimum 620 score for a first time home buyer fha Massachusetts

lender credit  - in the Low Fico program 620-639 - there was 0.57% available at 4.0% last week, in the 640-679 there was about 2%.  A recent collection to my wife brought us down and had a pretty significant impact on what we are bringing to the table.  We were too far down the road to move it to me only 

 

UW is more restrictive because they are normally sold to investors from the start.  Lots of new guidelines from the Govt on the program itself.

Message 7 of 9
Rick9811
New Member

Re: lender that will accept a minimum 620 score for a first time home buyer fha Massachusetts

Sorry if I sounds really stupid, what do you mean by .57% available. Also, where you still able to get a loan?if so, What where your scores when you applied and closed?
Message 8 of 9
terminalhockey11
Valued Member

Re: lender that will accept a minimum 620 score for a first time home buyer fha Massachusetts

The lender credit refers to just that..credit you can get on our financed amount of the loan, ie. towards closing etc.   Here in Denver, many homes are going off the market in a matter of days.  Ours was no exception.  Full offer, no % towards closing and went under contract 3 days after it was on the market (Easter Sunday).

 

If we were talking a 200k loan 0.57 would give back about $1140 and 2% would give back $4k.  If you don't need lender credit you can take a lower rate as well.  Most 620-639 rates are capped at 4%, usually between 3.75 and 4.

 

As stated above, to keep the wife on the loan we used the 620 program.  She had a collection pop up about 20 days ago that dropped her from about 650 and even if it was PFD there was no certainty that she would get back above the 640 mid mark.  

 

We were both around 640 when we applied, +/- a couple of points depending on the lender.

Message 9 of 9
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