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Answers (6)
Best Answer
- Patrick Nolan, "Bucks County Banker"
- Contributions:239
FHA the way to go unless you are able to put down 40.01% to keep the loan to value ration below 60%. Above that threshold the 630 FICO score is going to cause you a lot of pain on conventional rates.
- Collette McKee, "Collette McKee"
- Contributions:8
AdamCollet,
You asked is 630 is enough to qualify for financing. As you have seen that can be a difficult questiont answer. Yes it is possible to get financing at the credit score. However, there are a couple additional guidelines that need to be followed. Like your reserves after closing, we would require two months. But I would recommend you choose an FHA loan because your rate shouldn't be much higher than the standard rate for FHA loans. If someone trys to charge you additional fees because of your credit they are taking advantage of you.
Collette
You asked is 630 is enough to qualify for financing. As you have seen that can be a difficult questiont answer. Yes it is possible to get financing at the credit score. However, there are a couple additional guidelines that need to be followed. Like your reserves after closing, we would require two months. But I would recommend you choose an FHA loan because your rate shouldn't be much higher than the standard rate for FHA loans. If someone trys to charge you additional fees because of your credit they are taking advantage of you.
Collette
- AdamCollet
- Contributions:4
Thank you for the replies :)
- AdamCollet
- Contributions:4
It would be a purchase, and we would indeed be looking for something more along the lines of 3.5% down as it's a first purchase. VA is unfrtunately not an option for us. I will have to look into RD, though there's not much rural around Salt Lake City.
I guess the next big question becomes whether a score of 630 is sufficient to do it at all.
Thanks.
I guess the next big question becomes whether a score of 630 is sufficient to do it at all.
Thanks.
- Marketing Consultant, "Life Smith"
- Contributions:121
Protect yourself , FHA.
- David Prulhiere, "David Prulhiere"
- Contributions:25
Lots of information needed to give you a good answer.
1. Purchase or refinance? The loan to value limits that apply to conforming (standard) loans is lower that FHA. This means you need more money down for conforming loans.
2. How much down / equity do you have? FHA will allow for a down payment of only 3.5% on a purchase and Conforming will require 5% on a purchase and probably alot more on a refinance.
3. In my area, a lot of homes are manufactured homes (Mobile Homes). If yours is one, the rules could change from what is stated above.
If the amount of down/equity is less than 20% it probably makes sense to do FHA. The required mortgage insurance is much less than that of conforming loans.
In the chance you are a Veteran, consider a VA loan. Or if it is a purchase, maybe you will qualify for a loan called Rural Developement. RD loans are a zero down payment loan with no monthly mortgage insurance. Usaullay you need to be outside city limits (not always) to be eligible for RD.
Want more information? Visit Redwood Financial Services for rates and loan programs.
Hope this helps.
I have credit score 630 and wife is above that. My income is the high. Should go FHA or standard?
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