Real Estate
2007-07-19 03:40:57 · 7 answers · asked by Anissa H 1 in Business & Finance ➔ Renting & Real Estate
There is no hard set rule on minimum credit score to buy any type of property. There are a lot of different variables involved in qualifying for a mortgage loan besides credit score. How much you are planning on putting down, how much you have put away for retirement funds or in your checking/savings can also play major roles in the qualification process. However, if you are looking to buy a home with no money down that you will occupy as your primary residence and you can fully document your income then 620 is a good number to know is the cutoff with most lenders. The higher your score is than that the better your chances of getting approved.
If you are trying to finance a property that has been foreclosed upon, depending upon how you are trying to buy the home may be the difficult part. If you are trying to buy the home from sheriff's auction then obtaining financing can be very difficult. If you are trying to buy a property with a lot of problems and work needed then obtaining financing may be extremely difficult as well, especially if you have very little to no down payment.
Below are a few links about buying foreclosed homes and credit scores.
2007-07-19 03:49:42 · answer #1 · answered by dzwreck 4 · 1⤊ 0⤋
There are lenders who will lend to credit scores as low as 450. the criteria for a foreclosure is not any different, however there is more urgency to sell a home in foreclosure so at times you will get more help from the seller i.e. help with closing costs etc. a previous answer said 620 was a score needed to qualify for a mortgage, that is without a doubt incorrect. If you have provable income and proven stability in areas other than credit score you can get a mortgage with a 450 score, although you will pay interest rates between 14-18 percent.
2007-07-19 03:53:39 · answer #2 · answered by BIG "D" 2 · 1⤊ 0⤋
It makes no difference if you buy in foreclosure or not. The criteria are the same either way. Currently the low end of credit scores to qualify for mortgage is around 620.
2007-07-19 03:49:14 · answer #3 · answered by acermill 7 · 2⤊ 0⤋
everybody here has the correct answers...just remember also that even if your score is low and you get a higher interest rate...you can make your payments and start looking good...you then can refi.
also do not fall for any ARM loans (adjustable rate mortgages)...these loans will kill you when your payment starts to sky rocket every month.
stick with a traditional loan - 30 year fixed with no prepay penalities and 20% down.
also consider getting yourself a good loan specialist and a licensed real estate agent....check out your local banks...they will be the best for your financing.
good luck
2007-07-19 04:02:40 · answer #4 · answered by Blue October 6 · 0⤊ 0⤋
Unless your credit score is really low (below 400) financial institutions will have no problem lending you money. What you have to be prepared for is the lower your credit score, the higher the interest rate they are going to charge you...
2007-07-19 03:50:09 · answer #5 · answered by Gordon R 1 · 1⤊ 1⤋
If you have enough money for a down payment (10-20%) and closing costs yes. If you are looking for 100% financing then no the sub prime market is shut down completely.
2016-04-01 01:43:45 · answer #6 · answered by Anonymous · 0⤊ 0⤋
The same as to buy any home.
2007-07-19 03:46:56 · answer #7 · answered by Anonymous · 1⤊ 0⤋