can you get a mortgage with a midscore of 643 and a 20% downpayment?

Question

we are first time buyers with 2 yrs good payment history with a 62000k income and 1700 in total liabilities.

Answer 1

I am not a mortgage loan officer, but I would think so. I just closed on my first home January 19th with a lower mid score, lower annual income, and 1% down. I got a 6.5% fixed rate 30 year loan. I also got a grant from the state housing authority that paid my closing costs! To qualify for the grant, I did have to clean up a few skeletons out of my financial closet, but that was less than $1,000 and well worth the expense with a nearly 500% return on money I never have to pay back as long as I keep the house at least 4 years.

You are free to do as you wish, but I would stay away from ARM (adjustable rate mortgage) because after the "honeymoon" period where you have a dream payment that is way cheap, then comes the nightmare payments that may be as much as double your payment because the interest rate skyrockets.

If you want to qualify to get a better house you might work on your income to debt ratio by doing things like refinancing any car loans to get a better interest rate with a lower payment, or paying off smaller balance credit cards, or installment payments. It should increase the amount for which you can qualify.

Hope this helps and good luck.

Answer 2

You should qualify but there are things you should be aware about (1) Is there a bankruptcy (2) Has there been an NOD, (3) Are there any liens on credit and (4) Are there any outstanding balances ie. charge offs on you credit within the last 12 months over the amount of $500 dollars. Different lenders look at different criterias but the all the above will effect your interet rate and cash burn.

Answer 3

Yes. Even if as stated above you have collections or derog. A loan at 80 LTV ( loan to value) decreases the lenders risk and makes you as a borrower much more attractive. I am doing one for my sister right now at a 639 mid, at 5.875 30 yr fixed, no prepay. It will depend on what your new payment will be and how high your new debt to income will be. Some lenders will allow up to 50% , with subprime going up to 55%.
Good luck!!

Answer 4

With at least a Fico score of 620 and 20% down, I'm know you can get a loan. Your rate will be higher due to the lower credit score. The will probably be other requirements such as being on the job in the same field for a min. of 2yrs, and 4 tradelines (credit cards). Definitely look over you credit report to clear up anything that may be holding you credit score down. You'll want to aim for a score of 720 or higher.

Answer 5

It is good that you are doing your research and homework. I think the first thing to do is to ask yourself how much you can afford in housing expenses? Next is to find a qualified mortgage professional to review all possible finance options available. You may need also to define your long/short term plan with the new house.

Good Luck

Answer 6

Of course you can. You are a loan officers dream. I wish I seen more people with qualifications like this all day! If you need help send me an e-mail and I'll help you out. I will give out my work contact information when you e-mail me(a couple bad experiences of prank callers told me not to be so trusting with my info!). If I'm licensed in your state I will definantly be able to help you.

Answer 7

you should be able to check with a lender to see if you qualify. It sounds like your downpayment is enough..good luck!

Answer 8

Yes I did it!! I also am a single parent with less income than that. Anything's possible.

Answer 9

You should qualify nicely!