Mid score for 100% financing??

lostdawg · 03-07-2007, 03:15 AM

What is the lowest possible mid score that could qualify us for 100% financing on $236,000? MY FICO' barely 600. Do we have a chance?

Qtip · 03-07-2007, 09:17 AM

I believe FHA does 100 percent, for them you need at least 620.

Hedwig · 03-07-2007, 11:42 AM

There are a lot of restrictions on FHA loans, though. I'm not sure if there is a limit of how much you can finance or not.

But it is certainly a good place to start. Find a broker who handles all kinds of loans.

Also, many states have programs to help first-time home buyers. A good real estate agent or mortgage broker should know about those programs.

lostdawg · 03-07-2007, 12:19 PM

Anyone know or have a good broker in Georgia? Yes we are first time home buyers and I do qualify for a VA loan, but probally don't meet the standards for credit.

kwimberl · 03-30-2007, 04:34 PM

So I'm a bit late on this thread, but ...

Guidelines are changing almost daily for this sort of thing right now with the subprime mess we have right now.

Having said that, FHA is not score based -- it depends much more on your last 24 months of history (and especially the last 12). FHA is technically 97% financing in most cases.

FNMA and FHLMC both have a product that is similar, and in many cases, better for 100% financing if you meet certain requirements (one of which can be income).

If you let us know more about your specific situation, I can help you know whether or not you may qualify...

Hedwig · 03-30-2007, 05:30 PM

Thanks, kwimberl. I hope you'll visit more often and hopefully we'll get this mortgage forum going.

roybean · 03-30-2007, 05:37 PM

Quote:

Originally Posted by kwimberl

So I'm a bit late on this thread, but ...

Guidelines are changing almost daily for this sort of thing right now with the subprime mess we have right now.

Having said that, FHA is not score based -- it depends much more on your last 24 months of history (and especially the last 12). FHA is technically 97% financing in most cases.

FNMA and FHLMC both have a product that is similar, and in many cases, better for 100% financing if you meet certain requirements (one of which can be income).

If you let us know more about your specific situation, I can help you know whether or not you may qualify...

Where have you been?

Qtip · 03-30-2007, 10:14 PM

Quote:

Originally Posted by kwimberl

So I'm a bit late on this thread, but ...

Guidelines are changing almost daily for this sort of thing right now with the subprime mess we have right now.

Having said that, FHA is not score based -- it depends much more on your last 24 months of history (and especially the last 12). FHA is technically 97% financing in most cases.

FNMA and FHLMC both have a product that is similar, and in many cases, better for 100% financing if you meet certain requirements (one of which can be income).

If you let us know more about your specific situation, I can help you know whether or not you may qualify...

Welcome to the site and thanks for the help!!! It is much appreciated!

William Tygart · 04-12-2007, 05:22 PM

Mortgage scores have changed within the last 30-45 days. As many of you may have heard there are many subprime lenders going out of business because of the loans that they accepted. The dropping values as well as some mortgage fraud and increasing default rates have caused the mortgage companies to tighten up their belts a little.

Not too long ago a borrower could have 580 middle credit score and feel safe knowing they could get 100% financing. Right before the rules changed a 560 middle score, while getting you a higher rate, would allow you to obtain 100% financing. The "middle score of the week" right now seems to be in the 620-640 range for a lot of the lenders/programs out there.

That being said, there are some excellent programs such as USDA , FHA , VA , and some other Fannie Mae and Freddie Mac programs that will allow for 100% financing with the right borrower.

I think right now there is an over reaction by the industry (and rightfully so) to stop the bleeding and once home values and default rates come to grips with reality I think we will see some more lenient guidelines allowed by lenders.

roybean · 04-12-2007, 06:05 PM

Quote:

Originally Posted by William Tygart

Mortgage scores have changed within the last 30-45 days. As many of you may have heard there are many subprime lenders going out of business because of the loans that they accepted. The dropping values as well as some mortgage fraud and increasing default rates have caused the mortgage companies to tighten up their belts a little.

Not too long ago a borrower could have 580 middle credit score and feel safe knowing they could get 100% financing. Right before the rules changed a 560 middle score, while getting you a higher rate, would allow you to obtain 100% financing. The "middle score of the week" right now seems to be in the 620-640 range for a lot of the lenders/programs out there.

That being said, there are some excellent programs such as USDA , FHA , VA , and some other Fannie Mae and Freddie Mac programs that will allow for 100% financing with the right borrower.

I think right now there is an over reaction by the industry (and rightfully so) to stop the bleeding and once home values and default rates come to grips with reality I think we will see some more lenient guidelines allowed by lenders.

So you are saying that if your credit isn't up to standards, now isn't a good time to buy?

William Tygart · 04-12-2007, 07:00 PM

Great question, not sure that there is a concrete answer. Values have dropped and guidelines have tightened a little....but overall rates have stayed the same. Many of the adjustable rate mortgages are now converting and people are having to foreclose. While this is bad for those foreclosing, those that are able to buy NOW might find some properties selling for a "bargain" depending upon your location.

While the typical guidelines have tightened up, the VA and FHA guidelines are still lenient enough that many can still qualify. If you are not in the position to purchase a home I don't think anyone should feel pressure to "buy now or lose out on the opportunity of a life time" as rates should remain relatively the same for a while and the inventory on the market will increase over spring and summer of 2007.

lostnjax · 04-12-2007, 07:11 PM

Thanks WilliamTygart and welcome,
Hope you'll stick around a while. You'll find that the folks on this board are EXTREMELY intelligent and gives everyone the "right at home feel" (this also includes Drivel

). You don't get many arrogant characters here either.
I may have a boat load of questions for you in the near future and you sound as though you have a vast amount of knowledge in this area and I personally would like to see this particular forum blossom.

Thx,
lostnjax

William Tygart · 04-12-2007, 08:44 PM

Thank you for the welcome! I will check into the forum often and answer as many questions as I can. I have some articles I will post after I get past the "12 and 25 post" period where I can link to things. If you have a question that you need answering real fast feel free to pm me or email me, but please email or pm me the thread/post so I can answer in public so passers by can maybe get an answer to a question that may be the same as yours.

tabufx50 · 05-05-2007, 02:55 PM

I have been a mortgage broker for over 8 years and to get 100% financing it depends not just on your fico score but also the type of income documentation you submit your loan to the lender as.

For example, some income options are:

- Full Doc (providing pay stubs, W2's)
- Stated (just stating your income)
- No Doc ( No income provided)

The easiest way to get 100% financing is to go Full Doc and prove your income via pay stubs. Lenders are less strict on how much money (reserves) you have too. Usually a 620 fico will get you 100%.

On stated however, fico requirements go up, to 660 now.

Jane

thebraudgroup · 04-06-2008, 07:46 PM

I'm new to the forum. This is great information. Thanks!

Loan Doctor · 04-08-2008, 11:43 PM

Hi thebraudgroup
Thanks for coming to this forum. Things are changing so very rapidly in the mortgage business that what was true yesterday may change tomorrow. For example, pretty much the only way for the average person to get 100% financing is to go with an FHA loan.

Until recently, FHA was not score driven, meaning that as long as you had good recent credit history, you could get a loan. Now it is getting harder and harder to place FHA loans with investors when the borrower/s have less than a 580 score.

In a lot of the country there are loans called FHA Jumbo's. These are FHA loans that have loan limits over 417K. These loans require 620 mid scores.

Conventional (not government) loans are pretty much maxed out at a 95% loan limit. It used to be that the rates were the same once you got a basic approval-with a 620 score. Now there are higher rates until the borrower has a 680 score. etc.

As you have more questions specific to your situation, be sure to come back and ask them. We enjoy helping people get started.

Charles

drivel · 04-09-2008, 12:29 PM

Quote:

Originally Posted by lostdawg

What is the lowest possible mid score that could qualify us for 100% financing on $236,000? MY FICO' barely 600. Do we have a chance?

This is why we are in the mess we are today with mortgages and housing.