Question: What kind of score do you need to be considered "prime" for a mortgage? I know FHA doesn't look at credit scores (they do, but they don't hold that much weight) so I'm not really asking about that.
Well, I'm sure that there's a lot of opinions on this one, but... the wife and I were told by one of our lenders that our middle score had to be at least 620. With at least a 620, we would be considered "conforming" and could get into the good rates such as 6.5% for 30-year fixed. Hope it helped. Smitty, Chairman Department of Redundancy Department
I think 6.5% APR with a 620 is just bull, to say it nicely. Most lenders want around a 680 for A+ loans. My middle score was in the 630s, and I couldn't even get a conforming loan. I ended up getting a FHA loan. I am moving in this weekend. Good Luck.
Depends on what type of loan you're going after and how much your down payment will be. Have to agree though - FHA 3% down, no derogs past 2 years, bk at least 4 years old. If you want a score to go by, have at least 620...
My husband and I recently closed on our home. We have an FHA 6.875 APR with a 2/1 buy-down from the builder. Our credit scores were 520 to 580 for him and mine 599-613 - Not sure specifically, but I know they were in that range.
Now see, I've heard of people getting good rates with sub-600 scores. Our builder has more than 5 "preferred" lenders and every last one of them says that to get < 7%, don't walk into the door with less than 620. I've even went as far as to ask if their FICO programs were Next Generation. One lender told us that due to the sucky FICO system and the overall sub-700 scores seen on a daily basis, they HAD to "lower the bar" as he put it. Wifey and I still have a way to go (pay off cc's and student loans) before we actually APPLY for a mortgage and start building. But I wanted to be absolutely sure what my LOWEST score had to be before we got our faces cracked! Smitty I used to be a big Packers fan, but now I just hate the Raiders.
Shantel, How are you doing? Most FHA loan officers want a score of 620; this does not guarantee you 6.5% interest rates, but it gives them something to work with. Most persons with this score (or higher) can get prime rates, as long as the credit report in general is in good standing - no lates in past two years, no foreclosure, etc. A conventional loan usually requires a 680 score for prime rates (at least this is what my bank told me). There are several subprime lenders out there, but it will cost you more - higher closing costs, higher interest rates, etc. Dani
This site http://www.firsthomebuyers.net/2-1buydownloan.htm gives an explanation of what it is. Smitty Guilty Bystander
We financed through the builder (broker) and the loan is with National City Mortgage. A 2-1 buydown is where the APR is lowered the first year by 2 %and the 2cd year 1%. So for us we are paying 4.875% the first year and 5.875 the 2cd year. The builder is paying the mortgage company the percentage that is bought down. So the builder is paying the additional 2% the first year and the 1% 2cd year.
Hey Dani....I'm doing well...thanks for asking! As you can see, I'm trying to build a house. I was trying to decide it I was going to try to go "traditional" and not FHA, but I was checking the rates at my CU and they are not that far off from a place I found that's doing FHAs at like 6.5%. And that's with larger ratios also (35/45). My mother was going to help with the downpayment but I'd rather try to do it myself. I didn't want to try traditional though and be slapped in the face. I don't think I could stand it right now. I have 2 cc I'm going to pay off next month and then I'll apply. I DO have a foreclosure however, not only is it 3 years old but there is also a very very good explanation for it (that I won't get into here). I'm banking on my 3 years of excellent credit history and rental history to make me shine. My middle score is 630 (via creditxpert). And from what I've heard, Creditxpert is actually lower than what your score really is, so I'm really not worried. I just want to get these two little bills taken care of so I can qualify for the home at the current "purchase" price of 191k. Wish me luck and I'll keep yall posted. P.S. Thanks for all the responses.
