What is the minimum midscore beacon needed for 100% residential financing?

Question

I also would like to know what bank would do that type of financing on a 2/28 or a 3/27.

Answer 1

I'm frankly somewhat shocked at the mis-information that has been given to this question.

Here are the correct answers:

The only way to get 100% financing right now is by providing full documentation of your income. You can't go stated. This means to show 2 years W-2's and paystubs OR 2 years tax returns OR in some cases 12 months bank statements.

First time homebuyers are still getting 100% financing.

For the fannie mae My Community program they require a minimum mid FICO of 580. The program actually allows down to a 500 score but there are no mortgage insurance companies out there that will insure anyone below a 575-580 mid FICO.

Freddie Mac also has a similar program with similar credit requirements. With both of these if your mid FICO is above a 620 they will include the mortgage insurance into the rate so you don't have to pay extra.

FHA will finance up to 97% for people and do not have a minimum credit score requirement. They allow down payment assistance programs and seller assisted downpayment/closing costs up to 6%.

Fannie Mae Flex program goes to 100% financing with a 580 FICO. Very similar to my community with higher Mortgage insurance and less seller contribution allowances.

Conforming Alt-A type loans will go to 100% financing with lender paid MI down to a 620 FICO but rates will be much much higher. Up to 3 points higher than previously mentioned.

Answer 2

100% financing is very limited right now. My Community and Flex 100 with fanniemae, some first time homebuyer programs and VA. Some do not have a fico requirement but good credit and a safe bet would be 620 for decent rates but could possibly get approved with lower score but the interest rate would be higher. There are many factors and a credit score is not the only factor.

2/28 are pretty much obsolete now. Not recommended especially in this market right now. There may be some 3/27 out there but I don't believe any 100% financing.

Good luck.

Answer 3

If you can document 100% of your income (and co-borrowers if applicable) AND your debt to income ratios are UNDER 45% total, your would ALSO need a minumin (middle) credit score of 660.

You MAY also qualify for a MY Community loan or FHA, if your scores are below that, BUT have had a GOOD 2 year credit history(no collections, late payments, chargeoffs or judgements) No bankruptcy in past 4 years. Your debt to income would need to be LOWER 36-38% but would still need to prove 100% of all borrower's incme.

In today's market, unless there is a GREAT reason to be in a 2/28 or 3/27 ARM you will be near to the same rate going 30 year fixed or a 5/1 ARM.

Speak with a mortgage professioanl have them evaluate your credit, income and other debts to pre-qualify you for a mortgage. If you know you will be buying in the next 60 days go ahead and submitt ALL your income documents and get PREAPPROVED.

Hope this helps and Good Luck

Answer 4

dont go to a bank or retail mortgage company. Go to a wholesale mortgage broker in your state. That is what we are in Texas. We can get the same programs as a banker but at a better rate. The 100% loans are almost gone noe. The lowest fico at this point os about 580. but that would require some more documentation. Your fico score is only 1 part of several different requirements for a loan. www.OwnPartofTexas.com

Answer 5

With a midscore of 720 I was just offered 100% financing at 6.825, but I actually took a FHA loan with 6.5% interest, and the 3% down payment was assisted with the price being raised then paid.... so I am closing for about $800.00 total with builder paying 12 grand in closing costs including points, first year of HOA, etc.

So yes.... 100% financing is still out there, but you need good credit.... I'd say low 700's.

Answer 6

fha DOESNT HAVE SCORE REQUIREMENTS.....i'm not sure why that poster is putting that you need a minimum of 660?????????
with a FHA you can go have a 350 ..or an 850.
YOU HAVE NO SCORE...and still take out an FHA mortgage.
You will need up to 3% down though.
MyCommunity has no score requirement but you need a 620 to avoid HIGH PMI payments...same thing with HomePossible and flex100

Answer 7

I am more than confident that you won't find any 100% financing anymore, even with near perfect scores. If you find it, you better read the fine print thoroughly as I can promise you that someone is getting ready to have sex with you.....and you won't like it when all is said and done.

Get away from thinking 100% institutional financing is the way to go. With more and more sellers and few buyers, many sellers will likely consider carrying a second.

Answer 8

there is no mid-score, or anything else, because this is a rediculous thing to try to do! if you have been so slack that you can't even come up with some cash to start the financing, why do you think you deserve a loan???? do you pay for insurance or are you trying to scam the system by using hospital emergency rooms and never planning to pay my answer: WAIT, SAVE, DOWNPAY PART, and then beg for the remaining 80%.

Answer 9

Maybe the low 700s but the bigger question ,
Would the % rate be greater than the credit card rates ?

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