Minimum Credit Score Needed For A Conventional Loan…

When I look back on my blog posts over the years the most widely read posts consistently have to do with credit.

People want to know the minimum credit scores they need to get the loan program they are interested in.

Today I wanted to address the minimum credit scores needed to get a conventional loan through my office.

You will need a minimum credit score of 620 to get a 97% loan up to $417,000. (conforming loan limit in Texas)

You will need a minimum credit score of 620 to get a cash out loan on owner occupied property in Texas. (max 80% loan to value ratio)

For Jumbo loans (amounts above $417,000) you will need a 620 score to get a 80% loan to value ratio loan. In other words you would have to put down 20% on a jumbo purchase with this credit score.

There’s more to getting a loan of course than just the credit score. …but it’s a good place to start, and at least now you know what you need.

Please call me or email me if you have additional questions about your situation.

That’s it for today!

Have a good day today!  …and thanks for reading.
Brett
To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application.

To sign up for my weekly mortgage quick tips – CLICK HERE.

Fannie Is Changing The Rules On Their Cash Out Loans…

Fannie Mae has changed their definition of a Limited Cash Out loan in their latest selling guide (SEL-2012-14).

This will be effective with all applications dated March 1st, 2013 and after.

The changes are…

1) If the borrower finances the payment of real estate taxes for the subject property in the loan amount, but is not escrowing, the loan will be deemed cash out.

2) If the borrower finances the payment of real estate taxes that are more than 60 days delinquent, the loan will be deemed cash out, and the borrower will be required to escrow on the loan. (This is regardless of state law).

Note: The escrow requirements do not apply to DU Refi Plus loans (Fannie’s HARP).

There are two big ways these changes could affect you…

1) Pricing for cash out loans is a bit worse than a normal rate/term refinance loan.

2) Switching a loan to a cash out loan can affect the maximum loan to value ratio limits. In other words a 95% rate and term refinance loan wouldn't work as a cash out loan. The LTV would have to be lower to get approval for many programs.

That’s it for today!

Have a good day today!  …and thanks for reading.

Brett
To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application.

To sign up for my weekly mortgage quick tips – CLICK HERE.

Free Video Series On How To Get A Mortgage With Challenged Credit.

I like to use video as a teaching tool for potential borrowers.

Recently I created a series of short videos that show how to get a mortgage with various credit issues.

I wanted to make these available to you in case any of them might apply to you…

Here are the various subjects of each video.  Watch in good health!…

How to get a mortgage with low credit scores.

How to get a mortgage if you’ve had a foreclosure.

How to get a mortgage with public records.

How to get a mortgage coming out of a bankruptcy.

How to get a mortgage with collections.

Enjoy. …Here is the link.

That’s it for today!

Have a good day today!  …and thanks for reading.

Brett
To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application.

To sign up for my weekly mortgage quick tips – CLICK HERE.