Prequalify For Mortgage 2018

Prequalify For Mortgage 2018

500 is the lowest credit score to prequalify for mortgage 2018. New requirements for both FHA and VA require a minimum FICO score of 500.

• Fannie Mae mortgage requires a minimum score of 620
  
• Freddie Mac mortgage requires a minimum score of 620
• FHA mortgage requires a minimum score of 500
• VA mortgage requires a minimum score of 500
• USDA mortgage requires a minimum score of 580
• Portfolio mortgage requires a minimum score of 640
  

Fannie Mae and Freddie Mac may require a minimum score of 620 but it becomes cost prohibitive for borrowers with scores below 660 for higher loan-to-value loans. Borrowers with higher scores are more likely to qualify for a conforming mortgage with a higher loan-to-value.

FHA allows borrowers to qualify for a mortgage with a minimum credit score of 500.  Borrowers with credit scores above 580 are required to make a 3.5% down payment and up to 6% seller concession is allowed.

If you have credit scores below 580 new FHA changes require a 10% down payment to qualify for a mortgage. The funds can be a gift from a family member and up to 6% seller concession is allowed.

Debt-to-income ratio first time home buyer 45%. Credit scores above 640 maximum debt-to-income 50%. Non first time home buyer maximum debt-to-income 55%.

VA allows veterans to buy a home with no money down with a minimum score of 500. VA guidelines allows a veteran buy a home using their own funds, gift funds and up to 4% seller concession for closing cost.

USDA loans requires a middle credit score of at least 620. The home to be purchased must be located in an eligible rural area as defined by the USDA. Income eligibility for the USDA Rural Development home loan program are derived from calculating 115% of the counties median income.

Portfolio loans are loans that do not conform to Fannie Mae or Freddie Mac Guidelines. Jumbo loans are portfolio loans and require 15% down payment up to 1 million dollar with no mortgage insurance and 20% down payment up to 1.5 million.

Closing cost - FHA allows the seller to pay up to 6% of your closing cost.

If you are buying a $100,000.00 house FHA allows the seller to pay up to $6,000.00 for your closing cost. It must be in writing in the sales contract, "Seller will pay up to 6% of buyer's closing cost."

If you do not write it into the sales contract then you will be paying the closing cost. In the state of Florida closing cost for a $100,000.00 house average around $4,300.00 depending on taxes, insurance and who's paying the transfer tax and owner's title insurance.

By allowing the seller to pay for your closing cost you will decrease the amount of money required to buy a home. Buying a $100,000.00 property requires $3,500.00 down payment and if the seller pays up to $6,000.00 for your closing cost you will only need around $4,000.00 to buy a $100,000.00 in Florida.

Are you short funds to close? The FHA no closing cost loan allows all of your closing cost to be rolled into your loan including your appraisal fee, hazard insurance premium and even your escrow account.

Are you a first time home buyer? Do you need to get pre-approved for a first time home buyer program in Florida?

We look forward to working with you.

We recognize the importance to you of keeping your information secure and confidential. We will not sell or share your personal information.

Apply Now!

Call us 888.958.5382

Prequalify For Mortgage 2018 Prequalify For Mortgage 2018

We look forward to working with you.