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credit scores

Can I get a Fixed loan at a good rate with these scores 615, 627, 633?
Any broker recommendations?
  • May 21 2012 - Denver
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Answers (5)

YES!!! Many lenders go down to a 620 credit score and would allow both options for conventional and FHA financing.
  • January 08 2014
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I agree with everyone, getting your scores higher is your best bet.  Credit Resource Corp is one of the best if not the best organization in the nation that provides invaluable credit consulting services. [Hyperlink removed by Zillow moderator, see our Good Neighbor Policy], however if you need to move now, there are mortgage lenders that will offer FHA loans to borrowers with a 627 credit score, however once one is under 640, a lot of what we call "overlays" come into the picture....meaning that the lenders/investors overlay FHA's minimum standards and requirements in order to mitigate thier risk.  Some of these include not having any late payments on a mortgage for the previous 24 months, all collections must be paid off, debt-to-income ratio's are limited and payment shock is factored in, so that can make things tougher for those between 620 - 640, so again, getting your score up will be worth looking into to make things go smooth, or even to get the deal done.

Good Luck!
  • May 22 2012
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Profile picture for Cindy Quinton
If the middle score really is a 627 mortgage score, then the scores won't disqualify you for some lender's FHA loans. You can go to Zillow's Mortgage Market Place and begin to get some idea on where you stand. Other than the PMI, the FHA loans are a great deal right now, right around 4%. So even with low scores, your interest rate is still close to historical lows. If you are a Native American, you can avoid PMI. Some states have other programs in addition that might help you. The only real way to start is speak to a lender who works with lower scores....ask and agent or two who is good in your situation. 

Depending on what is in your credit reports, you can probably get your scores a little higher. One of the best ways to improve is to get your credit cards payed down to under 30% utilization, 10% is even better. I wouldn't take any action beyond that without speaking to a lender or two first. You can pull all three of your credit reports at www.annualcreditreport.com and you can read about repairing credit at www.myfico.com (it is also a great place to ask questions). Good luck, I hope to buy a home myself this year.
  • May 21 2012
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How soon would you like to move?

I would work on increasing your scores first.  FHA has a 3.5% down with mortgage insurance program.  You would get a better rate if your scores we higher.

Don't open any new credit lines, don't close any either.
Don't use more than half your open credit line.
Never pay late.
  • May 21 2012
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FHA is the only loan I can think of that will work with those low scores.   They have great rates, but you will have to pay mortgage insurance since FHA loans require it. (regardless of the amount of equity you have)

You may want to get your scores up above 680 and then refi into a conventional loan.
  • May 21 2012
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