To get a mortgage, you need credit, money and a loan officer.
Credit means 3 items: a credit score of 580 for a low down payment mortgage; current or open credit items such as credit cards or loans; no current credit = no mortgage; and, not terrible credit the last 2 years.
This means no bankruptcy in last 2 years; no multiple late payments on active credit items, such as auto loans; must be current on student loans (not in default or in collections); no multiple missed payments on monthly credit, such as student or auto loans.
There is a difference between a low credit score and terrible 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.
Your credit cannot be really bad in the last two years. This is poor credit.
Second, you need documented income: pay stubs, w-2s, or tax returns if you are self-employed. You need to have a bank account.
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.
Here is the list of some popular loan programs:
- Conventional – 3% to 5% down – 620 Credit Score
- FHA – 3.5% down – 580 Credit Score
- USDA: 0% down – 580 Credit Score
- VA: 0% down – 500 Credit Score …prefer 550
- Mobile Home – 3.5% down – 580 Credit Score
- No Tax Returns – Use 1 Month Bank Statements – 640 Credit
- No Tax Returns – Use 12-24 Month’s Bank Statements – 500 Credit Score.
To find out immediately if you qualify, call me at 800-991-3268, email me or go to my site and fill out an application at ChrisLuis.com
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.
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