Questions about a new home mortgage?

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Hello! My husband and I want our first home in the next year now. I have a question about our loan. Each of our FICO scores between 610-620.Wir declared bankruptcy have never had a car impounded or even missed a payment by credit card. Our guests for a ton of medical bills that we pay slowly when our son was very patient with our new insurance bills came the question, unfortunately, our credit gering.Meine wrong with the credit crisis, we would be able to qualify for? We live in San Diego, is so monstrous housing means that we can reach only about 5% down (housing prices. $ 700,000). I would very much appreciate input from people who have received loans in the past few months, and the people of Mercy Bankenbranche.Vielen!

  1. Reply
    May 1, 2011 at 4:16 am

    First off, are you sure it is medical that is hurting your credit, and not something like high balances on your credit cards? Probably one of the most misunderstood parts of the credit score equation is debt versus available credit. That being said, if everything else looks good(time on job, debt to income and all that) and you have a decent amount in 401k or some other type of reserves, there shouldn’t be a problem.

  2. Reply
    May 1, 2011 at 4:16 am

    Well WFR is incorrect. As far as I know with a jumbo loan amount like that there is no 100% financing available especially in most of CA right now regardless of loan amount unless you are going with a VA loan or Calhfa first time homebuyer program. Now with a sales price of $ 700,000 FHA is definitely out of the question because they do not go that high. But there is good news on the horizon. Possibly within the next month or so the conforming limit may be rising to between 600,000 – 700,000. When and if this happens it will open a lot of doors for you for financing and 5% down would work. So kind of hang in there and see what happens. It could make a huge difference in your payment.

    Now with 5% down you will need to pay PMI. You want to make sure your middle scores are no less then 620. If it is then you’re PMI will be substantially higher. Have a loan consultant pull your credit and review it to see if there is anything you can work on now to raise your scores. If your medical bills are older and you pay them now it could lower your score. If you have high balances on your credit cards it could affect your score too. You need to have someone who understands credit reports review yours to get you going in the right direction.

    I hope this helps.

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