topic Re: Better scores for mortgage? in Mortgage Loans

Better scores for mortgage?

907grown — Tue, 17 Nov 2009 20:02:01 GMT

Hello all, I spoke with a lender yesterday about getting a mortgage, we discussed a bunch of aspects and then the credit score came up..... She told me that 620 is no longer the magic number. She said its around 640-680..... Have any of you heard this too? I am a resident of Alaska so I am not sure if that is just here or in the lower 48 as well.

Thanks!

Re: Better scores for mortgage?

Anonymous — Tue, 17 Nov 2009 21:55:56 GMT

There are still banks that will do a loan with a 620 score but many have moved to the 640-680 range. Rumor has it by spring 640-660 may be the new norm.

Re: Better scores for mortgage?

DallasLoanGuy — Tue, 17 Nov 2009 21:58:16 GMT

for fha 620 is ok

but i am hearing rumbles of 640+ down the road.

ask another lender.

Re: Better scores for mortgage?

Anonymous — Tue, 17 Nov 2009 22:21:45 GMT

FHA actually doesn't yet have a minimum credit score requirement but lenders have their own filters. Some companies still have the ability to underwrite down to a 550 score but who knows how long that will last. Most lenders have adjusted their minimum score to 640

Re: Better scores for mortgage?

Anonymous — Wed, 18 Nov 2009 11:07:30 GMT

Hi,

I dont know what the future may hold, but I can tell you that I was approved FHA with scores of 665,645,605. The lender took the middle number of 645. We finally closed on our house on 11/6 and it was quite the journey since we put our offer on the house back on 8/11. (There were some hiccups along the way that probably could have been prevented; not so bright LO that equaled frustration and anger to me. I switched LO's and got it done)

Re: Better scores for mortgage?

XAVIERSMAMA — Wed, 18 Nov 2009 21:01:58 GMT

I was told that 640 was the new 620 by a broker a couple of months ago, I guess the moral of the story is to try and keep you score high

Re: Better scores for mortgage?

Anonymous — Thu, 19 Nov 2009 17:20:15 GMT

the key is that FICO is not the sole approval criteria.

Someone with a 600 but 5-10% down and 3 months reserves stands a better chance tahns someone with a 630 but min down and no reserves alot of times. Also, past credit history can matter alot. Someone with a 650 but a 4year old BK and a couple lates since may not get approved where as someone with a 620 who has no negative info in the past 24 months may get by. Job stability, income stability, source funds all play a part in the decision. I think people with a clean file but still at 620 score will normally still be able to find a loan. People with sub 620 are going to have an uphill battle no matter what, and people +620 but with some more recent issues are who are trying to get by with as little out of pocket/reserves are going to be pushed into the higher FICO minimum requirements.