How good does one’s credit need to be to qualify for a home loan with a decent percentage rate?
admin | Oct 10, 2010 | Comments 4
My fiance declared bankruptcy about 4 years ago, and I have had been enrolled in a credit counseling service to pay off personal debt (I will be finished paying it off this year). Both of our credit scores are slightly under 670. We want to initiation looking for a home in about a year, and will be able to place down about 20%, but we are concerned about getting approved for a mortgage. Anyone who can share any knowledge about this would be appreciated!
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Filed Under: Bankruptcy
I got a 100% loan no money down about 6 months ago. My credit score was 640. I had no problems. My rate is higher than u may want @ 7%. But I’m pleased because I know people who have 11%. I can’t imagine you wouldnt make a loan.
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Initially thing: Most mortgage companies will treat your credit counseling the same as if you’re in a Ch. 13 bankruptcy. They’ll want you to be done with it for 12 months before you can buy. So anything you can do to pay it off quickly will aid cut down that timeframe.
You could be excellent candidates for FHA loans even if, even now. But with a 20% downpayment, in a year, there’s unquestionably no reason you shouldn’t be eligible for the preeminent conventional tariff and programs available.
The Average credit score in America is about 680-685…If your credit hurts a bit, you more than likely would be considered a subprime borrowor which makes tariff a bit higher based on your description…Although, you can have the worst credit in the world and make 100% Financing with no down payment and still come out with a honest rate (5.5-7%)…Lenders compete for business so the industry to about the same across the board…I hope this info was useful!
Preeminent Regards,
FinanceYourWay.com