Profile picture for user556078

What does your credit score need to be to apply for home mortgage loan? Approval seems harder now.

  • November 26 2011 - Louisville
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (14)

You can apply for a home loan at a 620 (middle score) for regular homebuyers and a 580 for veterans. If you are looking to purchase a home, you will need 3.5% down for FHA and for veterans you will only need to cover the costs of parts of the loan process.

Hope this helps a little more!
  • August 07 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

You will need a 640 credit score for a FHA loan with most lenders now days. Kentucky Housing or KHC, USDA, FHA, all require a 640 score. VA will go down to a 620 score if you have been removed from bankruptcy from last two years or foreclosure 3 years. 
[Contact information removed by Zillow moderator. Please see our Good Neighbor Policy for information.]
  • July 14 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

FHA does have guidelines for scores and some city/county, and state programs do also. Generally banks look at your complete financial picture as well as your scores and recent credit history before making a decision on your loan.
  • January 02 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

the only required credit scores come on FHA loans and some types of first time buyer programs. Otherwise, lending is mostly discretionary - a mortgage rep might look for a certain score in order to qualify you, but it isn't necessarily set in stone.
  • December 06 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

http://www.bankrate.com/news/rate-trends/mortgage.aspx

Will rates go up, down or remain unchanged?

This week (Dec. 1-7), 46 percent of the panelists believe mortgage rates will rise over the next week or so; a lonely 8 percent think rates will fall; and 46 percent believe rates will remain relatively unchanged (plus or minus 2 basis points). 

http://www.money-rates.com/fed.htm

MoneyRates.com Interest Rate Forecast: 2011-2012

For the time being, there is no reason to expect that the FOMC will not follow through on its commitment to keep the fed funds rate near zero through the middle of 2013. There are really two things that could knock the FOMC off of that commitment: unusually strong economic growth, or a continued rise in inflation.

Even in the case of strong economic growth, the FOMC is likely to exercise an abundance of caution before raising rates, at least until the unemployment rate is substantially slower. That makes inflation the most likely candidate to cause the Fed to change its position sooner than expected.

  • December 06 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Blue Nile
Multiple pulls on your FICO score within a 30 day period only count as one pull.

You start with doing a quote request on ZMM, with the tab above, then carefully screening the loan officers by what they post on this site.

Qualifying for a loan has never been easier for those that actually pay their debt obligations on time and are not over extended.  For those that don't pay their debts and are over extended, who would want to loan them more money in the first place?  Would you?

As for a "rush to buy"?  Absolutely false market hype.  The FED has stated they are keeping the 30 year fixed rate for those that put 20% down and with FICO scores of 740+  for owner occupied in the 4% range for the next couple years (by buying 30 yr MBS).  (presently 3.83% average on ZMM).  And all the other loan products are thus adjusted accordingly.  And the bubble still has not finished adjusting across most of the nation, and cannot increase prices as long as unemployment remains high.
  • December 06 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for user556078
Thank you for all of your answers as they were very helpful. If some lenders do approve for loans with credit scores of 600 I don't know where to start, where to go. My fear is having my credit ran over and over again only making my score lower until i find the right lender. Thanks again for your replies. Kim
  • December 06 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Update: There are some lenders that will accept a score of 600.  Again, I don't think it's any harder, I just think you have to do your homework and be prepared to provide the necesary paperwork.  The rates, today are still at an all time low, and the price of housing is down. So, it a very good time to buy, if you can.  Again, find a good lender, that you trust to help you understand the process.

Good luck!
  • November 30 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Some lender will go down to 620 but the price will be adjusted. 640 and better is really where you want to be. This will get you a reasonable interest rate. This is just a starting point. There is more that goes into a loan such as debt to income and loan to value. Please feel free to contact me for any questions that you have.
  • November 28 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Rita Walker
Approval is more difficult now. Lenders are following new sets of guidelines.
Many of the guidelines have been set up to protect the consumer.

620 seems to be the lowest mortgage lenders will accept and that is for FHA. You may be able to find a mortgage broker willing to accept less, but be careful of the costs involved.
Good luck to you.
  • November 27 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I was in lending for over 32 years and what has happened is that lending requirements are back where they were in the early 80's thru early 90's where conventional requires 20% down. FHA requires 3.5% down or you can still get a gift for that amount as long as well documented. This is the only program that still allows a gift for downpayment without you putting money into the transaction and is the majority of loans being done BUT it must be a primary residence. FHA and VA do not do Investor/Rental property type loans. Yes it is back to more reasonable decisions about whether you actually are qualified or ready to infact buy a home and have the job stability, the debt to income ratios to be able to afford the monthly payment and have shown that you are ready to be responsible to buy a home. I do hope this helps. Gwen
  • November 27 2011
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

In answer to your question: there is at least one lender in the Louisville, Ky and Southern Indiana market allowing a 600 credit score for home buyers, combined with interest rate of around 4% for 30 year fixed.  

But be careful when assessing a lender, interest rate is only part of what you must look at.  Consider also: closing costs, pre-paid items, penalty pay-offs, balloons, down payment assistance compatibility, down payment amount requirement, adjustable or fixed rate, amortization period, assumability, rate lock period, cost of additional locks, reliability of information, etc.

Making a home purchase can be a tricky process: shop around, find a lender you trust, find a realtor you trust and buy soon!  Rates are at historic lows, the price of housing is very low and this is a strong buyer's market!  But nothing lasts forever. 
  • November 27 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

That depends on the type of loan you are applying for.  The minimun is about 620 but that varies on loan and product. The process has changed from say, a few years ago, you must qualify.  I suggest you find a good lender to help you with the process. 

Hope this helps. Good luck!
  • November 26 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

i believe it needs to be over a 620
  • November 26 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.