topic Re: Low mortgage scores, totally shocked!!! in Mortgage Loans

Low mortgage scores, totally shocked!!!

Anonymous — Thu, 11 Jun 2015 03:08:30 GMT

I have been looking forward to buying a townhome. My Fico scores has improved to 703 (EQU), 680 (TU) and 713(EXP). Then lo and behold, obtained a new credit report with mortgage scores, and they are all in the 650s. I know that I have lates from old student loans and 1 car payment. I also have 3 paid off collections. Is there any hope for me? I was going to go to my bank and a mortgage broker soon to prequalify, howecer now that I see these low scores, should I just wait until I write some goodwill letters in the hope that I may get approved in the future.

Re: Low mortgage scores, totally shocked!!!

StartingOver10 — Thu, 11 Jun 2015 13:49:15 GMT

The lender will use your mid-score of the 3 mortgage scores. If you are going for a VA or FHA or USDA loan, having your mid score in the 650s is fine. It only matters if you are getting a conventional loan. That is when the interest rate and PMI rate are sensitive to the score. What type of mortgage are you going for?

Re: Low mortgage scores, totally shocked!!!

Anonymous — Thu, 11 Jun 2015 22:02:59 GMT

Thank you for responding. I actually wanted to go for a conventional loan, I do not believe I would qualify for an FHA or VA loan, not sure about a USDA loan. Even though I prpbably can pay >20% down payment, and my DTI is probably 6%. I think my only option would be to improve my credit by removong lates.

Re: Low mortgage scores, totally shocked!!!

Anonymous — Thu, 11 Jun 2015 22:10:26 GMT

FHA is actually the easiest to qualify for. If you have the 20 percent down, those scores will get ya there. Especially with low dti, despite the scores not being where you expected, you are probably in decent shape.

Re: Low mortgage scores, totally shocked!!!

Anonymous — Thu, 11 Jun 2015 22:24:09 GMT

Is there a maximum income requirement for an FHA loan? Someone said I made too much.

Re: Low mortgage scores, totally shocked!!!

ezdriver — Thu, 11 Jun 2015 23:04:22 GMT

@Anonymous wrote:
FHA is actually the easiest to qualify for. If you have the 20 percent down, those scores will get ya there. Especially with low dti, despite the scores not being where you expected, you are probably in decent shape.

Minimum downpayment for FHA is 3.5%.

Re: Low mortgage scores, totally shocked!!!

StartingOver10 — Thu, 11 Jun 2015 23:13:22 GMT

FHA has no income limitations.

Re: Low mortgage scores, totally shocked!!!

Anonymous — Thu, 11 Jun 2015 23:13:41 GMT

@ezdriver wrote:
@Anonymous wrote:
FHA is actually the easiest to qualify for. If you have the 20 percent down, those scores will get ya there. Especially with low dti, despite the scores not being where you expected, you are probably in decent shape.
Minimum downpayment for FHA is 3.5%.

Yea i typed an incomplete thought. Doing way too many things at a time... I was going for if you have the downpayment hurdle cleared you should be good.

I dont think theres an income limit on FHA, there is on USDA, both direct and guaranteed.

Re: Low mortgage scores, totally shocked!!!

Anonymous — Fri, 12 Jun 2015 01:44:33 GMT

Thank you. Maybe I'll go to get pre-approved and see if I can negotiate a lower interest rate with a highrer down payment.

Re: Low mortgage scores, totally shocked!!!

StartingOver10 — Fri, 12 Jun 2015 01:50:12 GMT

What interest rate is the lender charging you? Usually the FHA rate is slightly lower than the conventional rate.

Re: Low mortgage scores, totally shocked!!!

Anonymous — Fri, 12 Jun 2015 01:56:20 GMT

I don't know yet what they would charge me, I just assumed with my low mortgage scores, I would have a higher interest rate. You can probably tell how green I am, never bought a home before.

Re: Low mortgage scores, totally shocked!!!

StartingOver10 — Fri, 12 Jun 2015 01:57:58 GMT

Your scores are fine for FHA. Mid 600s no problem

Re: Low mortgage scores, totally shocked!!!

Anonymous — Fri, 12 Jun 2015 02:50:25 GMT

Thanks again