To get a home mortgage, you need credit, money and a loan officer.
Credit means 3 items:
1. a credit score of 580 for a low down payment mortgage;
2. current or open credit items such as credit cards or loans; no current credit = no mortgage; and,
3. not terrible credit the last 2 years.
There is a difference between a low credit score and poor credit. A 580 credit score is low, but you can get a 3.5% down FHA mortgage. Or a $0 Down USDA – Rural Housing mortgage.
You can go down to 500 on an FHA Loan but need 10% down. If you are a veteran or active military – a 500 credit is needed and still $0 Down.
Terrible Credit is:
1. a car repossession the last 12-24 months,
2. multiple late payments on credit cards,
3. student loans in default or in collections,
4. child support in collections
5. A bankruptcy or foreclosure in the last 2-3 years
6. Missed payment on credit cards or auto loans in the last 1-2 years Following a Bankruptcy.
Second, you need documented income: pay stubs, w-2s, or tax returns. If you are self-employed and your taxes do not reflect your cash flow, you can use your bank statements deposits to show income.
And, you need to have money in your bank account to cover the down payment and closing costs.
If you have credit, documented income, and a bank account, you may already qualify.
Third, you need a loan officer to figure this process for you. I am a licensed State of Florida Mortgage Loan Officer. You get personal service and I find a bank that works best for your situation.
The bank where you have your checking or auto loan, may not be the best bank for you as they will not have programs that fit you. They may have a higher credit score requirement, or they have a much lower amount you can borrower. Plus, the loan officer at the bank works for the bank, not for you.
Bank loan officers have a couple of programs, and they try to fit you into those.
A mortgage broker has dozens of programs and finds one that fits you.
Here is the list of some popular loan programs:
• Conventional: 3% to 5% down with 620+ Credit Score
• FHA: 3.5% down with 580+ Credit Score
• FHA: 10% down with 579 or less Credit Score
• USDA: 0% down with 580 Credit Score
• VA: 0% down with 500 Credit Score …just NOT Terrible Credit the last 12-24 months;
• Mobile Homes: 3.5% down with 580 Credit Score
• Rehabs – Fixer Uppers: 3.5%Down with 580 Credit Score
• Self Employed: Use Bank Statements for Income or 1 year of Tax Returns; 500 Credit Score, 10%-25% down, depending on credit score.
• Investment Properties: 20% down with 680 credit score, 25% down with Credit Scores 620 to 679.
Interest rate based on credit score and loan size.
STEP 1: GET PRE-APPROVED.
HOW: call me, or go to my site and fill out an application at ChrisLuis.com
More INFO?: write me an email or text me.
A Pre-Approval Letter is the first step in house hunting as most realtors will not show you homes without one.
For a Pre-Approval Letter, you need to have your credit pulled to check what mortgage programs you qualify and have your income verified to determine how much of a loan you can get. Income verified is just recent paystubs and 2 years of w-2’s or tax returns.
Fast Pre Approvals once credit and income are verified.