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giants1990
Guest
0.10 Dollars($)
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Post subject: conventional loan |
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| i have a credit score around 710 and my wife's credit score is 680 we have 20% to put down can we get approved for a conventional loan |
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jerry
Moderator
Joined: 17 Oct 2005
Posts: 2708
Location: MICHIGAN
429.63 Dollars($)
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Hi Guest,
With a credit score of 710 and 20% down payment, you will be able to qualify for a conventional loan. But with a credit score of 680, your wife may not qualify for a conventional loan.
Thanks,
Jerry |
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jimgilly
Community Expert
Joined: 28 Jan 2010
Posts: 145
Location: USA
36.21 Dollars($)
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Post subject: |
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A 680 credit score most definitely qualifies for a conventional loan. There are lenders that will give you a conventional loan with a 620 credit score.
When there are two borrowers they will typically use the lowest middle score of the the two borrowers. If you can qualify for the loan without your wife's income then do it that way. If not and you have time, see if you can boost her credit score 20 points or so. That would save you money upfront on closing costs or probably around .125% in the interest rate you will get. |
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giants1990
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Post subject: origination fee with 680 credit |
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| is a origination fee of 2.75% correct with a credit score of 680 with 20% down sound right? |
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giants1990
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Post subject: |
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| it's a conventional loan with an origination fee of 2.75% of the loan |
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jimgilly
Community Expert
Joined: 28 Jan 2010
Posts: 145
Location: USA
36.21 Dollars($)
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Post subject: |
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| I would say it is too high. What is the loan amount? |
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giants1990
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Post subject: correction |
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| credit score 674 and loan amount $272,000 with 20% down |
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giants1990
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Post subject: |
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| sorry purchase amount $272,000 and loan amount of $217,600 |
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jimgilly
Community Expert
Joined: 28 Jan 2010
Posts: 145
Location: USA
36.21 Dollars($)
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Post subject: |
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giants1990, first question did you recently get the 674 credit score from a loan originator after they ran a credit check on you? If this is the actual credit score a lender would be using then you need to get a copy of it and see what the key 4 factors are that are lowering your score. There is a very good chance you could rapidly get your score to 680 or higher which could save you over $1600 in lender fees. Some lenders can do what is called a rapid rescore for a small fee and get this done in a matter of days.
Even with the 674 credit score paying a 2.75% origination fee still seems high though. To give you a more specific answer what is the interest rate you were quoted and term (30 year fixed rate?),what state are you in, does the 2.75% cover other 3rd party fees such as an appraisal, and what is the rate lock period being used (30,45,60 days)? |
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giants1990
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The interest rate is 4.875, 30 year fixed, michigan, no the 2.75% does not cover appraisel, lock 30 days which i didn't pay for cause it doesn't cost anything. My broker stated if i got it to a 680 it would be 1.75%, and if i got it to a 700 it would be 1% origination fee. I also spoke with another lender said the samething, just want to know if thier right,
thx |
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jimgilly
Community Expert
Joined: 28 Jan 2010
Posts: 145
Location: USA
36.21 Dollars($)
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Post subject: |
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Around $6000 for the lender origination fee and a 4.875% rate is in the ballpark with a 674 credit score. As I said get your credit score report which you are entitled to by law, if a mortgage lender recently pulled it and see what the 4 key factors are that are lowering your scores. Quite often there are things that you can do that will quickly increase your credit scores such as paying down a credit card or deleting an item that shouldn't be in your credit file.
Next, if you are in a hurry to purchase a home, find a lender that can do a rapid rescore. Depending on what factors are lowering your scores, you could easily see an increase to 680 and even 700 or more. Anyone capable of doing a rescore should have the ability to tell you approximately how much your scores should increase if you do go ahead with the rescore before you pay a fee to get it done.
And yes the pricing adjstments of going from 674 to 680 would be 1.00% less in what is called loan level pricing adjustments that both Fannie Mae and Freddie Mac charge and 1.75% less by going from 674 to 700. So on a loan amount of $217,600 you are talking about saving from $2176 to $3808 - well worth the effort to get your credit scores raised. |
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giants1990
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My lender does a rapid rescore and i'm in the process of tring to get my score up.
Thank you, Jimgilly you were very helpful |
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jimgilly
Community Expert
Joined: 28 Jan 2010
Posts: 145
Location: USA
36.21 Dollars($)
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Post subject: |
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giants1990, glad to be of help. I would be interested to know how the rapid rescore goes. Hopefully you can at least get to the 680 mark and even hit the 700 number.
Another thing you need to be aware of is Fannie Mae and Freddie Mac (the two GSEs where most loans are sold to) will be adding another .250% fee on loans with 20% down and credit scores of 680 and higher - Fannie Mae beginning 1 April. Credit scores below 680 will not have this increase.
That means even if you can quickly raise your score to 680 and higher you need to get the loan closed ASAP. You should confirm this with your lender as this would mean an additional fee of $544 on a $217,600 loan. |
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DEE
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Post subject: Mobile Home/Land Loan |
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Hi,
I live in Brooksville Florida and I am currently in a lease purchase option contract with a manufactured home/land. I am researching mortgage products for this type of financing. The purchase price is 159.000.00, including the lease purchase option and rent credit, we are putting 15,500.00 down on the home/property. What documentation is needed to when applying for a loan of this type. Its a 1999 Palm Harbor /mobile home 4/3, with land (2.30 acres). What type of credit, down payment, closing costs etc... to close Thank you, D |
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jerry
Moderator
Joined: 17 Oct 2005
Posts: 2708
Location: MICHIGAN
429.63 Dollars($)
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Post subject: |
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Hi DEE,
The lender will check your employment details, income and credit record along with your debt to income ratio. If you meet the required criteria of the lender, then you will be able to qualify for a mortgage. You will have to offer a down payment of 20% for conventional loan. However, FHA loans are available at a down payment of 3.5% - 5%. The closing costs will vary from state to state.
Thanks,
Jerry |
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