Zillow Advice: Mortgage - Conventional or FHA?

go get some credit counseling ...

Thu, 02 Jul 2009 03:47:00 GMT

go get some credit counseling in order to get your score to 620. Perhaps a secured credit card or any new revolving line of credit will get you there. If you are a first time home buyer, you may qualify for the 8k tax credit. Get into your loan and pay additional principle early on in the loan to generat more equity.

With a 605.... you will be ...

Thu, 02 Jul 2009 02:09:00 GMT

With a 605.... you will be denied by CONV lenders in 99.9999999999% of the submissions..... with a 3.5% down payment...... I will guess 100%. DO not worry about CONV... MI companies will not write the loan for you and if they did, you would pass out at the level of premium charged. FHA is your best/safest and only avenue. Find a good lender and do not think of the coulda should woulda because it really is not there at all. Good luck to you and I wish you well.

A credit score of 605 won't ...

Thu, 02 Jul 2009 02:00:00 GMT

A credit score of 605 won't qualify with most lenders these days, even with FHA so are you able to qualify on your income alone?

It is very hard to get a second loan to avoid PMI these days. Lenders have wised up to the practice and are at risk when this trick is pulled. WIth that in mind, you'd probably be better off with FHA.