Preapproval with 630 middle?

[Anonymous]

Anyone know of a good lender in PA or nationally licensed that can work with a 630 middle for now?

A lender I spoke to told me he couldn’t work with a score that low for a conventional 3% down loan product. I don’t want to go FHA right now...a lot of the townhomes in my area aren’t FHA eligible. Just looking for some help!

[JVille]

https://www.nerdwallet.com/reviews/mortgages/chase-mortgage

[Anonymous]

Thank you! My mom actually got her first mortgage through Chase as a FTHB. I definitely assumed their criteria is a lot more strict.

[VALoanMaster]

---

@Anonymous wrote:
Anyone know of a good lender in PA or nationally licensed that can work with a 630 middle for now?

A lender I spoke to told me he couldn’t work with a score that low for a conventional 3% down loan product. I don’t want to go FHA right now...a lot of the townhomes in my area aren’t FHA eligible. Just looking for some help!

---

Hi jgrey987,

Why do you say the townhomes are not FHA eligible?

A conventional loan at that score is typically going to end up with a higher payment than FHA unless you qualify for HomeReady or HomePossible.

PS. I would steer clear of Chase & any other big box bank.

Chase doesn't even really want to do mortgages.

See the story here:

https://www.housingwire.com/articles/36745-jpmorgan-chase-ceo-declares-mortgages-bad-for-business

[Anonymous]

Some are considered condos and HUD database shows their license expired. So since this post, a lender told me that I could ask if the listing is warranted (or something) and request a single FHA approval? I did look that up but I thought they changed that rule?

The other reason why I was looking for other options is because a home that I like isn’t FHA eligible because of the 90 day flip rule. I’ll probably just wait it out and see if I can get my score up higher. Stuck because I don’t want to apply for more credit.

[Mortgage-Specialist]

Im surprised that 90 day rule would be an issue. Typically an investor would buy it and rehab it for 2 or 3 months  at least before putting it up on the market. They must do pretty fast work. 

You still might qualify to do a conventional mortgage though... 

[Anonymous]

They bought it at a sheriff sale in February and had it on the market in March. I can tell they didn’t do much work at all.
Most lenders told me that scores under 680 probably won’t get a DU approval. I don’t want an astronomical rate or mortgage insurance either.

[VALoanMaster]

The only way you won’t end up with an astronomical rate & PMI is if you qualify for a Home Possible or Home Ready mortgage which may have income limits, depending on where the property is located.

[Anonymous]

Yep! That’s what I asked about. They said my score is too low. The website for Home Ready says 620 minimum. But I assume the lower the score, the harder/less likely it is to get an approval.

[Anonymous]

Morning Valoanmaster,
I need insight or a way to get my credit well enough to use my VA Home loan which I already have my COE for. I first tried United Veterans but my credit needed work and not a 620. They referred me to their lighthouse program. They did absolutely nothing but stressed me out. Due to my PTSD and other things I have 100% disability from the VA. I'm looking to get into a house. I just need help to raise score without all these hard inquires. I have 15k set asside just to start fixing credit report, but I don't know where to start. I hate to ask for so much assistance. I've seen your post and you seem very knowledgeable. I just need to be placed in the right direction. I mean straight dummy style. Go pay this. Get a 2k secured credit card. Thanks in advance. Any and all information appreciated.

Thanks,
Concerned Marine Corps Infantry Disabled Veteran.