The Minimum Credit Score You Need For Various Mortgages…

A common question I get is what minimum credit scores are needed for various loan programs.

I going to give you a quick guide for minimum credit scores on each program.

The mortgage industry is a very dynamic industry. …the rules change almost daily.

…so please check in with me when you get serious about buying or refinancing a house. The numbers I give here may change tomorrow!

Also, keep in mind there’s more to consider than just the credit score when qualifying for a mortgage.

…but, for the purposes of this post – here are the current minimum credit scores.

FHA – I can do credit scores down to 500. (10% down for scores between 500 and 579)

VA – No minimum credit score.

USDA – 620 minimum score.

Conventional – 620 minimum credit score.

Hope this helps! Call me or email me if you have questions about your house buying needs.

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.

You Can Refinance Out Of A Contract For Deed! Here’s How…

I get this question a few times a month. I've addressed it before in my blog, but I thought I should touch on it again.

Question: If I bought a house on a contract for deed or land contract can I refinance out of this type of agreement?

Yes you can!

...The Contract For Deed doesn't even need to be recorded. ...but it's best if you record it at the court house.

We just need 12 months cancelled mortgage checks to show you have made the payments on time for 1 year in order to refinance a Contract For Deed, or a Land Contract.

You would of course have to qualify for the loan otherwise - credit score, debt to income ratio, provable income, etc.

The biggest benefit of doing this loan as a refinance instead of a purchase is that we can use the appraised value, and not the purchase price for value.

...So, you can roll in closing costs instead of writing a check for them!

Max loan to value ratio on this program is 90%.   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.

  

Where You Can And Can’t Get An FHA Gift…

I get asked gift fund questions on FHA loans more than you would think.

Questions like...
  ..."Who can give a gift on an FHA loan?"
  ..."Who can't give a gift on an FHA loan?"

Here are the guidelines on FHA gift giving directly from the FHA underwriting manual.

  Acceptable gift donors for FHA loans...

  1) Borrower's relative.

  2) Borrower's employer or labor union.

  3) A close friend with a clearly defined and documented interest in the borrower.

  4) A charitable organization.

  5) A governmental agency or public entity that has a program providing home ownership assistance.

  Unacceptable gift donors for FHA loans...

  1) The seller.

  2) The real estate agent or broker.

  3) The builder or an associated entity.

  Gifts from these sources are considered inducements to purchase, and must be subtracted from the sales price.

  An interested note on the source of funds of the donor...

  As a general rule, FHA is not concerned with how a donor obtains gift funds.

This is provided that the funds are not derived in any manner from a party to the sales transaction.

  Donors may borrow gift funds from any other acceptable source, provided the mortgage borrowers are not obligors to any note to secure money borrowed to give the gift.

  How about that!

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.