what kind of FICO score do you need to get a prime rate mortgage? Are there sub-prime mortgages and what is the highest the interest can go? My fiance has 783 FICO score (equifax) and mine is low 600's, would we still qualify at all? Use both incomes or just his, since his credit is far superior? Our incomes are identical
http://www.myfico.com/myfico/CreditCentral/LoanRates.asp That link will get you more information. 720-850 6.711% 700-719 6.836% 675-699 7.374% 620-674 8.524% 560-619 9.672% 500-559 10.190% -Peace, Dave
A Equifax score of 783 is outstanding. Generally for a mortgage 661 is good, 681 is great, and above 700 the mortgage company can do what I think they call Express underwriting. This means you don't have to cough up as much paper work. Generally, it is the person who makes the most whose score they look at. And unless the major income earner can swing the mortgage on his or her income alone, you are better off applying together. In you situation, you should try to pull you score up by paying off all the debt on your credit report. Then dispute any derogatory items. An alternative if you are in a hurry, is to go to a mortgage lender and explain your situation and ask about (credit glossing) also known as (raped re-scoring). This is a service offered by some mortgage lenders to rapidly fix legitimate mistakes on your credit report. Given the fact that interest rates are about to rise, it might be worth it to pay a few hundred to fix a credit score so you can get a great mortgage rate and pay no points. I think some lender offer this service free. It pays to shop around. See story. http://www.washingtonpost.com/wp-dyn/articles/A55319-2002Apr26.html Good luck.
I just got a conventional 30yr fixed mortgage with 5% down last week. Rate was 7.75% with 2 points. Not great but not awful either - I've got a 4 year old CH7 BK on my report and several defaulted student loans that I'm paying back. My scores (from mortgage company): EX - 632 (real FICO) EQ - 556 (real FICO) TU - 601 (real FICO)
Got a fixed rate of 6.85 for 30 years. Wife has a fico close to 700 (she applied for a Cap 1/TJ Maxx card behind my back) and mine is somewhere in the 650 range. Mortgage broker used both of us as my income is twice my wife's income. Household income shade over 100k the score is important, but equally important is the income to support the mortgage. Best regards, Mirage
Wow, that's really good to hear!!! We aren't ready to buy just yet, so I have some time ot clean up my score. I only have 2 derog. tradelines, from CA's which are REAL debts... but they only total 120 dollars (pathetic I know) I JUST paid both of them.. Other than that I think my low score has to do with my length of credit history. Fiance only makes 3K more than me a year... I've heard you can qulaify for a much higher mortgage thatn you can actually afford, so if we just used his credit we may still be able to get a high mortgage! We'll have ot wait and see.
Yup, start the rebuilding process today. Lay-off in applying for any new credit. Best regards and best of luck, Mirage
PS... I don't have ANY outstanding debt.. no loans or CC debt.. I pay everything in full each month.. I only have 2 CC's... and a cell phone, so that and the collection for some library books is ALL my credit report consists of.. I guess time will improve my score
That collection for lib. books. Can that be disputed? I once had a 60+ late for a tution bill. Even tho I paid the account in full, I disputed the entry and the University never verfied the status. So off it came. Wife had parking tickets go into collection. I disputed those and it came back never verfied- so that was deleted. Best regards, Mirage
Any chance you folks that recently landed mortgages despite poor scores could share the mortgage companies you worked with (if these are national lenders)?
Actually your score can be improved for ADDING some debt. They call it, "A healthy mix". When you get your score there will be reasons why and what is impacting your score most. I would say after you clean up the derogs, that you will get messages like "not enough retail cards" or "only revolving debt" (where you need a structured loan like an auto loan)...things such as those, that may improve your score too...although as Mirage just said, I would NOT take on any new debt if you are looking for a mortgage in the near future. -Peace, Dave
Mirage, I guess i could dispute the LIB books.. BUT would I dispute with the CRA or the CA? I think your supposed to Validate with the CA and dispute with the CRA right??? In any case the debt is legitimately mine... NAve... my 2 cc's have low limits, even though I have had them a couple of years and never been late with a payment, just never asked for an increase!! I hear CAP 1 is bad with increases and I don't want a HArd INQ on my report if I ask for one... Would it help if my fiance put my name on his CC's with 20K limits?? He NEVER has revolving debt either so, I know it couldn't HURT me right?? Would that bring up FICO score? Also, how much does salary affect the decision of Mortgage company?.. FI and I make a little over 100K together... He works for the Gov't... I hear that helps when getting a mortgage becasue it's a "stable" job. I just don't want to find the house of my dreams and then have my hopes dashed becasue I *&^%% up over a few LIBRARY books..
Yes you dispute with CRA's and validate with CA's...even if it is yours, you can still get it removed...believe me I am proof. Send a note to Cap1 through PFB (www.planetfeedback.com) if you want a CL increase, Mr. Cooke is wonderful...explain your good history and claim you want to use the card more...you can get APR reduced too. But Cap1 does NOT report the limit, so that will not help your score. It WOULD DEFINITELY help for your fiance to add you as an AU to his accounts...you automatically get the history from his accounts on your report (if they report to the CRA's, some do not). Salary affects the loan. More effect for lower downpayment loans...if you put a good chunck down, they generally don't look as hard at income. But it is total houshold income, not just salary, so that includes you, any stocks/dividends/etc that contribute as well. I think you can get that library item removed. Examine things carefully...I would BET (if you look REAL closely at it) that something is inaccurate...name spelling, date reported, decimal point in wrong place, didn't dot the i's and cross the t's , and you can validate and dispute the thing into oblivion. -Peace, Dave
Bankrate.com lists a 30 year fixed rate mortgage at 6.35%. See Graph: http://www.bankrate.com/brm/graphs/main_graph.asp With a high credit score one can save a lot of money over 30 years.
rant There are several companies that work with what are called sub-prime borrowers and some will work with people with as little as a 500 middle score. When someone is in that score area, some lenders have a program where they will essentialy ignore all credit info and look at only a rental/mortgage history. If the borrower can document with either a VOR(verification of rent) from an actual property management company or apartment development, or a minimum or 12 cancelled checks(both front and back of check)...cach receipts are NOT acceptable and neither in most cases are money order receipts, a maximum of one more than 30 days late within the last year. Then they can get an 80% mortgage. The 20% has to include, at a minimum, 5% borrowers money and a maximum of 15% sell-take-back 2nd mortgage. You can expect to pay around 10-12% interest on the 1st, but that is for only 2 yrs and then you can refinance into a more standard loan. If you wish to email me off-board with contact info I will go into more detail with you. Hope this helps. fla-tan
Fla-Tan-- I have a question.... I was reading the thread and noted your response -- I too, have a low FICO score and a short/bad credit history....My only hope is that they do look at income, and as you said, proof of rental history....My question is this: I rent, but receive cheesy rent receipts from my landlord (I live in a private home) -- I do right checks EVERY month though -- Could my checks be proof of my timely rent payments? Thanks in advance!
Sure, that is fine. A cancelled check should constitute a receipt. As for timely, they may call the landlord to see if you paid on time every time though. But I doubt they would. -Peace, Dave
Because of my exceptional payment history over the last 3 years, schweb | ==================== Another flaw with the 7 year reporting period 59
Yes the cancelled checks are exactly what you want to use. The landlord would never be called. That is why you need to provide both front and back of the cancelled check. The date that the check cleared is normally on the back of the check and that is what is looked at. fla-tan
