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low credit score mortgage

Posted on: 22nd Jun, 2007 04:45 pm
Can make a down of $160k on a nearly $310k house & my income is $100k. No cc debt, all paid off/ a car payment of $600/ no recent charge offs. The thing is my score is low at 540s reason being late on some accounts. and don't have many open accounts, may be $12k. Looking at mortgage now, what rates are going for me with the low score I have?
It is likely that as you are able to make a high down payment you should qualify for conforming loan approval provided you can document your income. If you do not put all the money into down payment so as to have reserves to show then it will be an easy approval with good rates. Will you be able to verify your income?

Miller
Posted on: 22nd Jun, 2007 05:15 pm
you can keep aside monie for 30% down & put the rest in the bank. then a 70% ltv will not be too much of a problem. and keep all documentation for showing the source for the funds you have.
Posted on: 22nd Jun, 2007 05:25 pm
Hi Vernon,

Welcome to Mortgagefit discussion board.

Many loans do not put too much stress on a good score. As your income is good and if it can be documented then you have programs to select from.

Plus you will have to look into your ratio of total monthly debts to income and how much it is coming to. Are there other payments except for the ones you mentioned in your post?

Have you calculated your debt to income ratio, if you did how much it is coming to? And the score is low just for the lates or are there other derogatory entries on your report?

Do provide some more details to get better advice on your position.

Thanks
Blue
Posted on: 22nd Jun, 2007 05:47 pm
Hello Vernon,

Normally, lenders look at the credit score when they give you loans. With a low credit score as yours, you would get a loan with a high interest. Also, you mentioned that you can make a down payment of $160k, but your income is $100k. So, will you be able to continue with it. Have you checked your debt-to income ratio?
Posted on: 23rd Jun, 2007 12:10 am
Hello Vernon,

What you can do is, you can wait for some time and improve your credit score. Otherwise, you can opt for FHA loans. One criterion of FHA loans is that credit score should be of 620 and above. But that is not the only thing they look which giving a loan. They also look at your credit report. If all the criteria in the report are to their satisfaction, then there is a possibility of them providing you with a loan.
Posted on: 23rd Jun, 2007 12:19 am
Hello Vernon,

What you can do is, you can wait for some time and improve your credit score. Otherwise, you can opt for FHA loans. One criterion of FHA loans is that credit score should be of 620 and above. But that is not the only thing they look which giving a loan. They also look at your credit report. If all the criteria in the report are to their satisfaction, then there is a possibility of them providing you with a loan.

Jenkin,

Thank you for your input however you are wrong. There is not a score requirement for FHA loans. There are loan limits but no income limits. To the OP.....if you find a good broker they should be able to put something to gether for you based on your income and the money down.
Posted on: 23rd Jun, 2007 05:49 am
"One criterion of FHA loans is that credit score should be of 620 and above. "
I agree with Cedric. FHA loans do not require the borrower to have good score to qualify for a loan. For fha loans lenders look at your overall credit history.

Miller
Posted on: 23rd Jun, 2007 06:16 pm
"Can make a down of $160k on a nearly $310k house & my income is $100k."

you have a large fund available for making downpayment, would you be able to provide documentation for the source of downpayment you have?
Posted on: 23rd Jun, 2007 08:01 pm
FHA might be an option---one would need to review whether the OP's loan request is above the allowable loan limit (what county/state to intend to purchase in).

Jenkin's previous statements are a bit misleading---FHA loans are not credit score driven---there are FHA lenders that do require DO/LP approval (and that's where scores come into place)---there are other FHA lenders that don't require DO/LP approval and are manually underwritten.

Regards,

Scott Miller
Posted on: 24th Jun, 2007 05:00 pm
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