Have you been out looking for a home in Southeastern Massachusetts, only to be held back by 'not quite high enough' credit scores? Well, I have some good news for you. Mortgage lenders have quietly lowered the credit score bar. It's now possible to qualify for an FHA or VA mortgage with credit scores as low as 580! The minimum credit score for conforming conventional mortgages is still 660, but those with credit scores as low as 620 may considered on a case-by-case basis. Of course, there are strict guidelines that you must adhere … (2 comments)
mortgage qualification: How Do Mortgage Rates Affect the Purchase of a Home?
- 09/07/10 01:33 AM
How Do Mortgage Rates Affect the Purchase of a Home? There are many factors which determine how much you can afford to purchase - things such as income, down payment, outstanding debt, credit scores, and mortgage interest rates. Some of the determining factors in qualifying for a purchase of a home is income and debt. Lenders will, in part, use debt-to-income ratios to determine how much mortgage you can afford. Generally, most lenders will limit your "front end" or housing ratio to no more than 31% of your gross income. (For self-employed borrowers, that will be 31% of their net income.) … (0 comments)
Credit scores are one of the largest factors that lenders use in evaluating whether or not to lend money to a borrower. Credit scores are designed to measure the risk of someone defaulting by taking into account various factors in a person’s financial history. If you are considering purchasing a home one of the things you want to … (2 comments)
A: Yes, you can get pre-approved for a mortgage. However, with those credit scores, your best option most likely will be either an FHA mortgage, a USDA loan, or a VA mortgage. For FHA, you need only 3.5% down. For both VA and USDA, you can buy a home with no money down. Of course, with VA, you must … (0 comments)
mortgage qualification: Frequently Asked Question: Can we qualify for an FHA mortgage with a bankruptcy?
- 02/17/10 11:59 PM
Frequently Asked Question: Can we qualify for an FHA mortgage with a bankruptcy? Q: We are in the process of bankruptcy due to health issues. My question is, if we sell our present house to downsize and get a smaller mortgage (by at least $70k), would we be able to get a mortgage? Now that we are discharging the other debt, we are able to make our mortgage payments. Would we qualify for a much smaller mortgage even with the bankruptcy? A: By FHA guidelines, if you had a Chapter 7 bankruptcy, then you would need to wait two years from … (1 comments)
mortgage qualification: Frequently Asked Question: Can I Put Just 3.5% Down for an FHA Mortgage on a 2-Unit Property with a Non-Occupant Co-Borrower?
- 02/17/10 11:45 PM
Frequently Asked Question: Can I Put Just 3.5% Down for an FHA Mortgage on a 2-Unit Property with a Non-Occupant Co-Borrower? Q: I would like to buy a 2-family home with an FHA mortgage and live in one of the units. But I need my mother as a non-occupant co-borrower to help me qualify for the mortgage. Can I buy the house with just 3.5% down payment? A: No. If there is a non-occupant co-borrower and you are purchasing a multi-family residence (i.e., 2-, 3- or 4-Unit property), then you must put at least 25% down. When there are two or … (2 comments)
mortgage qualification: Frequently Asked Question: Are USDA Loans Good?
- 02/17/10 11:39 PM
Frequently Asked Question: Are USDA Loans Good? Q: Has anyone used a USDA Loan? Are USDA loans good? How do they work, and where can one use it on Cape Cod? A: Yes, the USDA guaranteed home loan is a great mortgage program. USDA rural housing loan programs allow qualified homebuyers to get loans with minimal closing costs and no downpayment. The purpose of the USDA loan program is to enable eligible low- and moderate-income borrowers (who earn up to 115 percent of the Area Median Family Income) to purchase modestly priced housing for their own use as a primary residence. The … (3 comments)
mortgage qualification: Frequently Asked Question: Will cosigning for a loan affect my ability to get a mortgage?
- 02/13/10 10:12 PM
Frequently Asked Question: Will cosigning for a loan affect my ability to get a mortgage? Q: I've cosigned a loan for my son a year ago, but he wants to get another car, and he wants me to cosign again. The car payment will be about $350 - $380 a month; he currently pays about $320/month. He already tried to get the car loan by himself, but he couldn't get financed by himself they said his score was about mid 600's. I don't have a problem cosigning, but I want to get a house within the next 2-3 months. I know … (4 comments)
mortgage qualification: Frequently Asked Question: Which is Better: An FHA Mortgage with 5% Down, or a Conventional Loan with 10% Down?
- 02/09/10 01:44 AM
Frequently Asked Question: Which is Better: An FHA Mortgage with 5% Down, or a Conventional Loan with 10% Down? Q: Which is a better way to buy a home? Getting an FHA mortgage with 5% down payment and with 5% emergency backup? Or a Conventional loan with 10% down and no emergency backup? A: Let's use an example. Let's say you want to buy a house for $100,000. For a conventional mortgage, you will put $10,000 down. For an FHA mortgage, you will put $5,000 down. So, we will compare a conventional $90,000 mortgage with a $95,000 FHA mortgage. With FHA, … (4 comments)
mortgage qualification: Frequently Asked Question: For a Mortgage, Is it Better to Save for the Down Payment or Pay Off Debt?
- 02/08/10 01:19 AM
Frequently Asked Question: For a Mortgage, Is it Better to Save for the Down Payment or Pay Off Debt? Q: What is better in the eyes of the lender - to have a smaller down payment or have less debt? I cleaned out the money I had saved for a down payment and paid down some debt, but what should I do going forward? A: That depends. Having more money available for the down payment won't necessarily qualify you for more house. However, using available funds to pay down your debt might. Your overall monthly debt payment is one of the … (3 comments)
FICO Score Requirements for Mortgages Lowered
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