Can you qualify for a conventional mortgage with 5% down, a FICO score of 675 and a DTI of 25%?

Deal Score0

My fiancee and I are buying a house in Fulton County GA. Bank of America told me that I have a median income of 680 guests for a conventional loan. I did not have much time to shop, but I really felt that it would be so low to a lender that keeps us away from a FHA loan with 5% down and our DTI. Please thank and tell you in advance.

  1. Reply
    January 28, 2011 at 6:43 am

    You can get a boost on your credit score fast if you pay off a credit card that has had a balance on it for a while.
    Spend the cash and pay off that card and bring it to Zero.
    Keep it there until after you get approved.

    All credit cards should either be at Zero or at least not have more than 30% of their limit used. Bring them to that level and your score will go up fast.

    Your Debit to Income is great… just keep looking. There are more banks out there than BofA.

  2. Reply
    January 28, 2011 at 7:00 am

    I purchased a house at age 23. I had a DTI of about 40% a FICO of about 650 and put nothing down. I purchased the house through a mortgage broker and got a 2 year locked, 30 year variable loan at 8.99% through a company called NovaStar. After 2 years they sold our mortgage to a company called Saxon that was just ridiculous, they raised our interest rate to 13.99% and constantly held our payments to accrue interest.

    I went to my credit union and was surprised to find that they have very relaxed requirements as compared to banks. I refinanced my house to 4.99% (with 3 points that I also rolled into the mortgage) for a 30 year fixed mortgage. My payments are the same as it was for the previous 8.99% except now we have an escrow for insurance and taxes.

    I cannot emphasize enough, the benefits that come from mortgaging a house (or establishing a car loan) through a credit union. Some are hard to get into but ask around, if any of your family members are enrolled, you can as well, in addition you may have eligibility through your place of work. I recommend looking up a credit union, seeing what they have to offer, then using that to compare to what Bank of America has to offer.

    One last thing, banks offer rates that are usually best case scenario, for instance, BOA has a 3.99% rate, but if you apply you may end up being offered a 6% if you don’t qualify for the lower one. At credit unions they will give their lowest rates to everyone that qualifies.

  3. Reply
    January 28, 2011 at 7:45 am

    Mortgage loan is a term used for the loans secured by a property. Mortgage loans refer to a loan secured by residential property, often for the purpose of securing real estate. Mortgage loans are priced lower than other loan structures because the value of the property risk for the lender.

    A fixed rate mortgage loan has its own benefit. If the borrower is budget conscious, he will remain at peace because the monthly mortgage amount will not change.Fixed rate mortgage loan is a loan where the interest rate remains the same through the term of the loan. Fixed rate mortgage loans are the most traditional form of loan.

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