New Magic Number? 620? 650?

[getnthere]

I remember hearing/reading somewhere that the magic number you need to have to even be considered for a mortgage loan was 620.  However, given the current state of the economy, I wonder if this has changed, i.e. gone up to say 650.  So does anyone know what the new magic number is, or are there any brave souls who despite all the craziness out there has made the major move recently and applied for a mortgage? I plan on taking the plunge soon...as soon as I can get to that magic number.

[Anonymous]

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@getnthere wrote:
I remember hearing/reading somewhere that the magic number you need to have to even be considered for a mortgage loan was 620.  However, given the current state of the economy, I wonder if this has changed, i.e. gone up to say 650.  So does anyone know what the new magic number is, or are there any brave souls who despite all the craziness out there has made the major move recently and applied for a mortgage? I plan on taking the plunge soon...as soon as I can get to that magic number.

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I don't want to deter you from trying to get a loan but I have a FICO mid-score of 717 and I was denied a FHA loan. I'm now working with another mortgage broker/lender to see if they can get me qualified. That said, several people on this message board have received mortgages recently with 620 scores.

My advice....research the threads here and post your stats as several of the members/moderators here can look at your situation and give you a better idea if you can qualify. Or just go straight to the source....find a reputable loan officer and tell them your situation and see what they say.

Good luck.

[Anonymous]

FHA is not supposed to be credit-based, and has a minimum requirement that is supposed to be pretty low, like 620.  With a 717, my guess is something else prevented you from getting a mortgage, such as not enough assets, or too high a DTI.

[Anonymous]

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@Anonymous wrote:
FHA is not supposed to be credit-based, and has a minimum requirement that is supposed to be pretty low, like 620.  With a 717, my guess is something else prevented you from getting a mortgage, such as not enough assets, or too high a DTI.

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My DTI is 3% and CC utilization is 2% and assets are easily enough to qualify. That said, there are reaons for my denial but I just wanted the original poster to understand that a 620 FICO score doesn't guarantee a home loan....at least not in my case.

[Anonymous]

The specific house in question plays a big role too.

[Anonymous]

VA loan is always useful.  Looks more at recent history.  NO PMI!!!!

[Anonymous]

Yes, VA looks like a great loan, but you need to have been in the military to qualify.