For Those Worried Their Credit Score Is Too Low To Buy A Home A Must Read

Dated: August 16 2019

Views: 92

I have to admit, I am one of those guys that says, if it sounds too good to be true it probably is.  But lets get a head of ourselves... Let's start with where most lenders can lend on, you might be surprised at these numbers.  And remember the credit score gets the conversation started about the next steps to qualify but without these numbers there may or may not be a product for you.  Typically the lower the score, the higher than interest rates as well, with the exception of the DPA (down payment assistance) programs, they start a higher interest rate.

500 credit score 10% down FHA (Of course when your credit score is that low, then there's other issues, maybe debt to income, some late payments, and a lot more explaining to the underwriter of the loan prior to getting approval.

580 credit score 3.5% down FHA - Most lenders can get this done.  Not as high as they would like to see, a little more work for the approval, and some bases prior to approval, but if you have a 580, I've seen the loan go thru.

620 credit score 3% down Conventional.  You can put more down but some lenders, not all lenders, can get you approved with 3% down

                                0% down (down payment assistance programs start at this credit score.)

640 credit score a few more 0% down payment assistance programs become available

730+ you get some of the best rates out there.

There's a company out there now, that is saying if you don't have a great credit score, not a problem.  They will buy the home, let you move into it, rent it, and you can buy it from them when you are credit worthy.  There's some interesting things about the rents being part or all of the down payment as well, and you lock in the rate for today's rates, and right now FHA is in the low 3% range if not 2.99 with some lenders.    So what if I told you a 550 credit score, and you can still pick out the house you want, and have a strong offer and a lender that will close on this for you?  Of course, you are going to want to buy something you can afford for the payments, but it sounds too good.  Is it true?  I'm working on that relationship with this lender today, and by Monday, I should be able to take you shopping for homes with confidence of 3.5% down FHA buyer at a great rate.  So check back in with me... leave a message, call me at 623.236.5843. text me, etc... starting Monday the 19th of August, and let's see what we can do to get you the home you want today instead of 6 or more months from now, as the prices continue to go up and who knows where the interest will be at that time.

Look forward to hearing from all of you,

Stephen Cotton

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