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Conventional Mortage with a 620 Credit Score

Conventional Mortage with a 620 Credit Score

Hello!

 

 I am new here!

 

I have been reading and need some feedback regarding the best banks to obtain a conventional loan at a 620 credit score? Right now.. I am going to try Wells Fargo's 1st Mortgage program. I have a opportunity to buy a home but FHA is not an option. 

9 REPLIES
Frequent Contributor

Re: Conventional Mortage with a 620 Credit Score

620 is typically good enough for a conventional loan and rates and fees should be similar across the board and you will get what you pay for.

 

If you want high quality service, don't be afraid to pay a little extra.   

 

Buy bargain brands at Wal-Mart and Ollie's Outlet at a discount, but don't discount the value in obtaining a experienced and knowledgeable mortgage professional for your first home.

__________________________________________________

Licensed NC Mortgage Loan Originator
Message 2 of 10

Re: Conventional Mortage with a 620 Credit Score

Hi,

This is what I am asking as most lenders I have spoken to have stated that FHA is my best bet.. wanting to know if others have experience with other banks..
Message 3 of 10
Frequent Contributor

Re: Conventional Mortage with a 620 Credit Score

Sorry, I reckon I misunderstood your inquiry.  You stated FHA is not an option---so I figure it must be due to the condition of the subject property not being able to pass the appraisal qualifications or that you are looking for an Investment Property.

 

Because; generally speaking, with a credit score below 680, FHA will more than likely be a better loan program for a consumer when it comes to the APR thanks to HUD insuring the loan for your lender. 

__________________________________________________

Licensed NC Mortgage Loan Originator
Message 4 of 10

Re: Conventional Mortage with a 620 Credit Score

No, the property does not accept FHA loans.. so I need a conventional loan.
Message 5 of 10
Established Contributor

Re: Conventional Mortage with a 620 Credit Score

Your rate will be high and the cost of getting the loan (discount points) will be high as well.  Sounds like it may be a condo that's not FHA approved.

" EX 689 EQ 691 TU 687 MMS 695"
Message 6 of 10
Super Contributor

Re: Conventional Mortage with a 620 Credit Score


@FAITHFILLED123 wrote:
No, the property does not accept FHA loans.. so I need a conventional loan.

Most sellers are clueless about FHA loans.  What is the reason they aren't accepting FHA loans?  Is it because of the condition of the property?  If so, then FHA has a rehab loan called FHA 203(k) that can finance any needed repairs/renovations.

 

It's possible to qualify for conventional with a 620 score.  If I had a 620 score and was looking for a mortgage, I'd use a mortgage broker so they can shop around to find a lender who is OK with your situation. 

Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial Multifamily) since 2002
In Irvine, CA and lending in all 50 states

Information that is needed to determine if you qualify for a mortgage

shane@thebesthomeloans.com
Message 7 of 10

Re: Conventional Mortage with a 620 Credit Score

Hi,

The property is a deed restricted property and FHA won’t approve it.

As far as mortgage brokers.. do you have examples of different companies.. I was told the Wells Fargo First Mortgage is a possibility...
Message 8 of 10
Super Contributor

Re: Conventional Mortage with a 620 Credit Score

Correct, FHA only allows deed restrictions if it meets one of the following exceptions listed at https://www.ecfr.gov/cgi-bin/retrieveECFR?gp=&SID=edeb747250479b13cc6f26239fbb7bf8&mc=true&n=sp24.2.....

 

Any company that has a minimum score of 620 or below will tell you that it's a possibility.  You'll want to ask friends, family and your real estate agent for a referral. 

Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial Multifamily) since 2002
In Irvine, CA and lending in all 50 states

Information that is needed to determine if you qualify for a mortgage

shane@thebesthomeloans.com
Message 9 of 10

Re: Conventional Mortage with a 620 Credit Score

Thank you! Wish me luck💕
Message 10 of 10