Posted on: 24th Oct, 2013 01:50 am
My credit has been ruined due to some wrong financial decisions but now I have somehow managed to build it up to 620. Will I be able to get a loan if I pay a down payment above 20%?
Hi Sallyy,
In order to get a conventional loan, you will have to maintain a credit score of 720. This is irrespective of whether you have a 20% or more down payment. However, you can get a FHA loan with a 620 credit score.
Thanks,
Jerry
In order to get a conventional loan, you will have to maintain a credit score of 720. This is irrespective of whether you have a 20% or more down payment. However, you can get a FHA loan with a 620 credit score.
Thanks,
Jerry
Conventional Loans with a minimum 5% down payment and FHA Loans with a minimum down payment of 3.5% are available with a credit score of 620 or higher.
The mortgage rate for conventional loans gets higher and higher as you go further and further below a 740 credit score.
The FHA mortgage has Monthly Insurance Premiums (MIP) that last for the life of the loan (same idea as PMI for conventional loans.).
If you have 20% down payment available and a credit score of 620 or higher, do the Conventional Loan with no PMI.
The mortgage rate for conventional loans gets higher and higher as you go further and further below a 740 credit score.
The FHA mortgage has Monthly Insurance Premiums (MIP) that last for the life of the loan (same idea as PMI for conventional loans.).
If you have 20% down payment available and a credit score of 620 or higher, do the Conventional Loan with no PMI.
With a credit score of 620, you will be able to get a FHA loan. In case of FHA loan, you will have to make 3.5% down payment on the loan.