740+ For Loans?

JPowell · Joined: 20 Jan 2010 Posts: 103 Location: PA

I read an article earlier this month discussing the changes in what's considered to be a "good" credit score since this whole economic disaster cut loose.

When I started my credit repair journey in 2008, a score in the high 600s was good (like a 680) and having a 700+ would get you into the esteemed 700 club on credit related forums... but it seems now that to get prime loan pricing for homes (at least according to what I had read) you need over a 740!

That seems insane, and unattainable for a lot of people.

Has anyone recently gotten approved with lower scores than that at a manageable rate?

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

Yoru score is fine. You can get a loan. I can get loans for people as low as a 500 score...dont worry

JPowell · Joined: 20 Jan 2010 Posts: 103 Location: PA

Yeah it seems like the article might have been a bit melodramatic. I think that I should be ok when the time comes especially since my Significant other has a score that is 700+ (or at least was when we last checked).

Thanks so much for the reassurance!

heidrek · Joined: 25 Jan 2010 Posts: 7

High/Low scores are only part of the equation. Equity/Deposit and discertionary income form bigger parts of the pie.

jhonny07 · Joined: 31 Jan 2010 Posts: 10

Your credit score is just fine well having a credit score like that is quite hard to achieve

TimtheMortgageGuy · Joined: 16 Jan 2008 Posts: 96 Location: Rosemount, MN

If you have less than a 740 you will pay more for a conventional loan. The lower it is the more you willl pay.

You can certainly obtain a mortgage with a score lower than 740. However, most lenders are now requiring at least a 620 which is a good thing.

JPowell · Joined: 20 Jan 2010 Posts: 103 Location: PA

Thanks everyone, hearing a number that high was really mind numbing. I always considered 700+ scores to be exceptional.

I'll be pulling my scores again next month, and I expect them to be in the 620+ range so at least I have one thing that seems to be leaning in my favor for home buying.

MrPink1130 · Joined: 11 Feb 2010 Posts: 17

EricJ....What mortgage company is doing loans at 500 credit scores, we decline alot of people who are under 620-I'd like to be about to refer them off
JPowell...mortgage company's take the lower of the 2 score, not an average

740 is the majic number...........
at 740+ you get the rate of 5.125% w/ 0 points
below that you can still get the 5.125% but points will start to go up, the lower the credit score, the higher the points. The higher the points, the more fees there are. Good news is that the points money can be tax deductible.

also, if you have a credit score below 680 you will not be able to obtain PMI. so you'd better ahve 20$ equity in the home or you are going FHA

if you go conventioanl or FHA you'll find out the min credit score with all the big banks is 620

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

MrPink

I work with multiple lenders doing FHA below 620 and as low as 500. The LTV requirement is lower though. 85% for a 500 score. 90% for 580, etc I can originate in NJ NY CT PA and FL so let me know if you have any loans that would fit.

TimtheMortgageGuy · Joined: 16 Jan 2008 Posts: 96 Location: Rosemount, MN

EricJ wrote: MrPink

I work with multiple lenders doing FHA below 620 and as low as 500. The LTV requirement is lower though. 85% for a 500 score. 90% for 580, etc I can originate in NJ NY CT PA and FL so let me know if you have any loans that would fit.

FHA should not be guaranteeing any dam 500 FICO loans. That makes me sick. No wonder they are raising the funding fee on GOOD borrowers. 500 is horrible and ANYONE in that position should not be qualifying for a Gov't backed loan.

Even if I could I would not do these loans.'

"Just cuz you can do them doesn't mean you should"

joe1 · Joined: 11 Nov 2008 Posts: 20 Location: California

Don't kid yourself. Just try to close an FHA loan under a 620. The lender picks those loans apart so much that it's nearly impossible to close.