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Today I’m bringing you a look at a listing my team and I took over after it failed to sell with another company. Before we got our hands on this property, it had sat on the market unsuccessfully for 180 days. In just a quarter of the time it was on the market with the previous company, my team and I were able to find this home a buyer. So, how did we achieve this? Watch this short video to find out.
Today we're talking about credit. More specifically, we’re talking about the minimum credit score requirement for an FHA loan. The reason we’re focusing on the FHA loan here is that it has the lowest barrier to entry for buyers.
FHA stands for the Federal Housing Administration. They are the ones that come out with all the different guidelines and rules. The FHA-approved lenders are the ones who enforce these rules. FHA-approved lenders typically require a 580 minimum credit score. If you’re below that, you may still be able to qualify, albeit with a 10% minimum down payment. However, hitting that 580 market will ensure that you can get a loan with a 3.5% down payment.
When you’re getting ready to buy a home, it’s a good idea to set aside some money for closing costs. There was a time when I could tell my clients that we could get their closing costs covered by the seller, but we’re not in that kind of market anymore. The market is so tight now and homes are moving so quickly, by the time we submit an offer on a property there will most likely be other offers to compete against. That means that we have to make sure your offer is as attractive as possible.
If you’re not quite at that 580 credit score, you should consult with a mortgage professional so we can make sure you qualify for a home. Also, remember to keep some money set aside for your closing costs. I’d be setting you up for failure if I told you there weren’t going to be any.
If you have any questions for me, don’t hesitate to reach out and give me a call or send me an email. I’d be happy to answer any questions you may have.
I want to share an alternative home loan option that is a little more inclusive. This is a great option for anyone looking for assistance in affording their next home.
Today I want to follow up on the information I recently shared with you about a 100% financing option.
Unlike down payment assistance, this option allows buyers to forgo a down payment altogether. However, this particular program is a little bit exclusive.
That’s why I want to share an alternative option that is a little more inclusive. This is a great option for anyone looking for assistance in affording their next home. The last one had a credit score requirement of 636, while this new program only requires your score to be at least 620.
This is a great option for anyone looking for assistance in affording their next home.
So long as your score is at least 620, you can get a conventional loan with no down payment and no private mortgage insurance. Many people opt for FHA loans, but that loan type actually means you cannot get rid of your private mortgage insurance, which will cost you a couple hundred extra per month.
Another stipulation for the program I’m offering today is that you must earn less than $55,000 a year. If you earn more, you’re going to need a slightly higher credit score.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
