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Trying to buy a home with a 620 or above Credit Score and 20% down.

My husband and I are trying to purchase a home in Maine. We started the process thru Wells Fargo and they denied us because our credit score was 637 we have 20% to put down and the home we would like to buy is $74K. They told us we dont qualify for an FHA loan. Can someone give me some advice.
Thank You
  • December 09 2013 - US
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Answers (7)

Not every lender is the same. Just because one denied you, doesn't mean they all will. So don't give up yet and keep looking around. Lenders like myself are able to do FHA loans with scores as low as 580 and conventional loans with scores as 620. So you should be able to have both of these options available to you with that credit score and down payment. Either way, the best thing for you to do is to speak with a lender directly to see if you can get started on financing with your situation. There are lenders like myself that would be glad to speak with you to help you get the loan that you need. Well I hope this helps! If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!
  • December 12 2013
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I would recommend you ask the loan officer at Wells Fargo to explain why you did not qualify.  I would also recommend talking to a local lender, see what they can do for you.

Best of luck.

Spirit
  • December 10 2013
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Amy, so the bank you went with denied you because of your credit score?
  • December 10 2013
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You should be able to qualify for an FHA loan at a 637 score ( I can go down to 620) no problem and only hve to put 3.5% down. If your middle score pulls up at a 640 then we could go conforming and you would only have to put 5% down. You most certainly can put 20% down on either program. You will not have MI if you put 20% down on coventional with an 80% loan-to-value.  You will have MI if you were able to do conventional and put down less than 20%.  You will have MI on an FHA loan no matter what percentage you put down on it and it also stays on for the life of the loan.  Contact me if you would like my help.

Regards,
Brynn
  • December 10 2013
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I am not personally licensed in Maine but my company does conventional loans with 620 as our minimum score. I can get you in touch with someone who can help if you contact me through my profile. You don't need a portfolio product with your scores. I would avoid an FHA loan due to the mortgage insurance never dropping off.
  • December 10 2013
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If you are putting down 20%, you may want to contact a local bank that makes portfolio loans. A FHA loan will require MIP even with 20% down which will increase your cost. A portfolio lender may be able to look not only at your credit score, but also what has caused it to go down. If there is a good explanation that mitigates their risk, they may well be willing to work with you. If you have a copy of your credit report, bring it with you when you meet with your loan officer and be upfront about the causes of your credit issues and what steps you are taking improve your credit.
  • December 10 2013
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With 20% down and acceptable DTI, I have seen approvals with that credit score.  Contact me through my profile and I can put you in touch with someone in my group that can help out
  • December 10 2013
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