Posted on: 30th Dec, 2012 11:57 pm
My wife is attempting to get a loan for a mortgage and her two highest credit scores are 632 and 638. She cannot get a loan as her score is not 640 and they say to get a loan we need 20% down. We can put 10% down and we are finding it impossible to get approved anywhere. Is there anyone that can help, is there anything we can to get approved and close quickly? We are running out of options.
With the credit scores that she has and with the down payment you can offer, it will be better to go for a FHA loan. Such loans are available at a credit score of 600-620 and at a down payment of 3.5% - 5%.
Which type of loan are you trying to take out? Is it a conventional loan or an FHA loan? With your credit score, it may be difficult to get approved for a conventional loan. As rightly suggested by you, try for an FHA loan.
Since your wife has credit scores of 632 and 638, she may find it difficult to get loan approval from a lender. Thus, even with 632 and 638 credit scores, she may qualify for a FHA loan. However, for a conventional loan, your wife needs to have a good credit score (720 and above).
The best idea would be to go for an FHA loan given her score and the situation. However, if you want a conventional loan, then it's important that your wife improve her credit score.
Here the problem is not with the 10% down payment amount, but it is with the credit score of your wife. In fact, 10% down payment is fine to get approved for a conventional loan too. If her credit had been around 700, then she whould have even qualified for a conventional loan with 10% down. Now, her only bet is perhaps an FHA loan.
We offer FHA loans down to a 620 middle score nationwide. Feel free to have your wife contact us to discuss the loan scenario. We are in the office today!
There are lenders who will do 3.5% down at 620
You need to keep looking for those lenders
You need to keep looking for those lenders
