Posted on: 12th Dec, 2012 10:57 pm
Hello there… I've heard that you only need a 620 for an FHA mortgage, 640 for some lender programs and even USDA financing, but what is available to me by having a 661 middle score? How does that benefit over having just a 640?
Hi Guest!
Welcome to forums!
With a 661 middle score, you may qualify for a FHA loan. However, you may not qualify for the minimum rates as available in the market.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
With a 661 middle score, you may qualify for a FHA loan. However, you may not qualify for the minimum rates as available in the market.
Feel free to ask if you've further queries.
Sussane
With your credit score, you have chance to get approved for an FHA loan. But, you have to anyways meet all other criteria related to employment, asset, DTI ratio, down payment requirement etc. so as to get the approval.
661 is fine for FHA loans. You have to however arrange the 3.5% down payment.
Another advantage of FHA loans are that these loans require to make low down payments as compared to other traditional loans.
For any loan programs, the higher the rate the better the interest rate and terms. In addition to FHA, you might want to consider conventional financing even though you need to out down 5% instead of 3% because next year the up front cost is increasing by .10 bps and mortgage insurance will not expire during the course of the loan. Right now, the upfront cost is .175 with a monthly of .125 which can be lowered after 5 years or after your LTV is below 80%. Please feel free to contact us with your questions.
Apart from the easing up process of FHA loan if you get a couple of required things evaluated then you would be able to enjoy a few more incentives of maintaining such a score.