What FICO score do I need to finance a home purchase 100% (no money down)?
My friend just had his loan canceled. He was closing escrow this Friday. The Banks freaked out and raised the bar on loans when they got news of foreclosures going up. I was in college during the housing boom and now I have a lucrative IT job, paying me 6 figures. I have no money to put down on a home but I can afford the monthly payments. What FICO score do I need to qualify for a loan?
Public Comments
- Depends on a lender. I think you should be fine with 720+ Fico
- shop different lenders. They may have different requirements.
- you need a FICO of 680 with reserves, banks now are asking for 4 to 6 months PITI in reserves meaning the monthly payment plus taxes and insurace. If you need help improving your FICO Amercian Credit Specialist can help you. Download their information from this site: www.menahomes4sale.com hope this can help you.
- That market has change dramatically. The companies that are still strong are swamped and slow in service right now. Some lenders might require, 640, some 620. I don't know if any will do 580 now; that was the lowest I had seen a few months ago. With a good explanation (like hospitalization, temporary job loss, etc), maybe an exception can be received. Big Question: was he going through a mortgage broker or directly through a lender? Lenders will just say yes or no depending on their own rules, programs, and investors. A good mortgage broker has access to many companies and can search the market for a good fit. For yourself, if you have good credit, check out first time buyer programs or FHA. See if you can get the seller to pay most of the losing costs. I suppose you can probably get around 6.0 - 6.25% on a 30 year fixed with nothing down.
