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| *Loan,banking and credit>>>bad credit mortgage |
How bad can one's credit be and still get a mortgage? |
How bad can one's credit be and still get a mortgage? All of the above is correct about the 620 score - for an A paper loan. I've had far lower scores than that and still gotten a mortage with a decent rate (about a percent higher than A paper - still cheap money in today's market), the icky part is the pre-pay penalty. Most of the lenders that will do this kind of loan will charge you a hard pre-payment penalty that means that even if you are selling, not just trying to refinance, you're going to pay to get out. I've got a 5.90% fixed jumbo on an (80/10/10 loan) that I took out this April with a 695 score, but I had 6.5% three years ago with a 580. My score vacillates wildly with my balances on my accounts - and I always pay them down to 25% of my limit 45 days before I apply for a mortgage loan. My score usually has gone up about 100 points from this simple thing. The other thing is that if you have 20% down it will cover up for a lot. Credit score and income are still the biggest factors in today's market. You can get a mortage with virtually any score if you're willing to pay for it is the bottom line. Get a great mortage broker that you can talk to and they will go to work for you. Also, if you have any new collection accounts or delinquencies pay them now. If they are old, talk to your broker first as you may end up re-aging an old account and getting a negative impact if you pay on it. I hate to sound like that, but a lot of these collection agencies get bunk accounts and then use them to collect unowed money. I'm sure many are reputable, but it's the crappy ones that can hurt you when they don't play fair. Anyhow, go for your mortage and good luck! 620 is probably the minimum score. in the state of washington the average low mid score should be 630 points to be able to get a loan. But you still have to shop around quite a bit with lenders to get the best deal. There are also special deals for the first time home buyer that allows you special deals with points, closing cost etc. check with your local realtor for advice. You don't nec have to hire them, just ask for advice. There's no one answer to that question. You need to tell us what kind of mortgage you are seeking. The most simple answer is a 625 or higher FICO score. The more complex answer: there are lenders out there today that will lend on much lower FICO scores. Of course the better the credit score, the lower the interest rate. And some lenders will make exceptions based on specific stories, i.e. I don't know why my FICO score is so low. All of the above, plus, depends on how much of a down payment do you have? 20% down will get you everywhere. It depends ont he company you get your mortgage through. And it also depend son whether or not you have corrected the problems that are listed on your credit report. And it also depends on what your income and job status is. Most companies do not base loans solely on your credit rating. It is important, but it isn't the only factor! The median credit score is 723. As of December 29, 2006, here's what you'll pay in interest, based on your score. 30 Yr fixed mortgage FICO score APR 760-850 5.796% 700-759 6.018% 660-699 6.302% 620-659 7.112% 580-619 8.316% 500-579 9.193% So as you can see, as long as your credit score is over 500, you can manage to get a mortgage. Obviously, the downside is that the lower your score, the higher your interest rate. I you want a better understanding of how the credit scoring system works, visit http://financialbasics.blogspot.com/2006... Good luck, and keep up the good work |
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