topic Re: What does your FICO score need to be to purchase a home? in General Credit Topics

What does your FICO score need to be to purchase a home?

Anonymous — Thu, 17 May 2007 20:01:27 GMT

We are trying to buy a house....we very recently have paid off some debt and are waiting for scores to increase. Currently my husbands FICO is 550 but I wondered how much higher it needs to be in order to be considered for a mortgage? Please let me know....thanks in advance.

Thanks,

PokeyMommy

Re: What does your FICO score need to be to purchase a home?

Anonymous — Thu, 17 May 2007 20:09:34 GMT

Welcome!

You could go out today and get a mortgage. The problem is, it would be on really horrendous terms. There's a big danger you wouldn't be able to keep up the payments and you'd lose the house.

The lower your score, the more you pay. See the FICO home page for examples of how the score corresponds to possible mortgage payments. Read a few threads on this forum and you'll get a better idea of how it all works. Good luck!

Re: What does your FICO score need to be to purchase a home?

reily28 — Thu, 17 May 2007 21:32:23 GMT

I have checked as well with three mortgage companeys this week my score is combined 590 i can get a loan now. I was told if i could rasie it to 620 i would save aprox. $800.00 over the next six months . I six months my chapter 7 will have been dichared 2 years ant then i would get a goog rate they all est. a rate of about 8.75 in a took the loan now and 7.75 if i waited six more months.

you want your score as high as you can get it. And if you can affored it do it now and pay on time and re-fi in a few months.

Good hunting.

Re: What does your FICO score need to be to purchase a home?

Anonymous — Thu, 17 May 2007 22:49:33 GMT

Well, lenders won't just look at your FICO of course. If you have a 690 and a paper route you may have a problem. If you have a 500 and pull down 200K a year....you see where I'm going. Also, with a lower score the LTV will likely be lower so you'll need more money up front, 10% or even more. But, and this has been discussed and debated here, if you look long and hard enough you will find someone willing to finance you in almost any situation. You just have to be tremendously careful about what you'll do to get those keys. Don't let house fever fog your sensibility.

Message Edited by devhip on 05-17-2007 03:49 PM

Re: What does your FICO score need to be to purchase a home?

Anonymous — Fri, 18 May 2007 07:49:04 GMT

FHA, VA and naca.com are 3 sources of a loan that won't look at your FICO scores. They do look at recent payments. No lates in a year and they look at DTI.