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Mrtg for 2nd house with some credit challenge w/20% down

Posted on: 12th Jan, 2011 10:40 am
We are trying to buy 2nd house , but our scores are 666 and 632. we have one FHA mortgage on the current house. we do have about 20% down. Looking for mortgage lenders who can qualify us , interested to work with different terms. Please email me ASAP if you think you can do it....
Let's talk.......

Tnx
hi ajdba!

welcome to forums!

you will have to contact the local fha lenders in order to get a second mortgage. if you have the required equity in your property, then you will be able to get a mortgage. this community has a large number of lenders. you can seek a no obligation free mortgage quote from them and get to know what type of rates and terms you may qualify for.

feel free to ask if you've further queries.

sussane
Posted on: 12th Jan, 2011 08:24 pm
what I meant to say that we are looking for conventional loan with 20% down payment for our 2nd house but our scores are 666 and 632(low); we may need some lender who can work with us and guide us as to how we can qualify for the loan.

[Email address deleted as per forum rules. Thanks.]
Posted on: 14th Jan, 2011 08:49 pm
You should be able to find lenders in your area to help you. Talk to a good local mortgage broker.

You are going to pay alot in fees with your lower credit scores though. The difference in fees between a 640 FICO and a 740 FICO is about 3% of the loan amount. On a $200,000 mortgage, that's an extra $6000 in fees you're paying just because of your credit.

Make sure you really have those credit scores too, I get people all the time thinking theirs are 40-50 points higher than they really are. You pretty much can't get a loan today with less than a 620 FICO.

Creditkarma.com will give you your credit score for free (really free, not fake free like alot of the other sites).

And make sure your total debt-to-income is ok. Your "debt" is all of your housing costs on both houses including property taxes and insurance, plus any other revolving debt you have. Your DTI needs to be well below the 36% threshold to keep the underwriters happy.

--steve
Titan Mortgage Alaska
Posted on: 16th Jan, 2011 10:27 pm
You might also consider moving into the new house as your primary residence and getting an FHA mortgage on it. The rates and fees are a better deal for low credit borrowers.

Our current rates for a $200,000 house w/ $160,000 loan & 660 FICO:

4.625% FHA is $2000 in fees
4.625% Conventional is $6000 in fees

And you wouldn't have to put down 20% on the FHA, just 3.5%.

That's assuming that your current residence isn't already FHA insured.

Anyway, find a good local mortgage broker, they'll help you.

--steve
Titan Mortgage Alaska
Posted on: 16th Jan, 2011 10:36 pm
Posted on: 16th Jan, 2011 10:48 pm
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