If you have a credit score of below 660, do not be deterred. Despite many changes in secondary marketing guidelines, there are still programs available for those with credit scores below 660. There are still 100% financing, low down payment financing, and high ltv cash-out refinances available for those with credit scores below 660. The next paragraphs will highlight many of the programs available for credit scores below 660.Credit score under 660 have programs and guidelines that allow loans secured by real property. Lenders will look at other compensating factors to judge the credit strength of the borrower such as income and assets.
A Credit Score under 660 may limit your ability to access loans larger than $417,000, so called jumbo loan programs, particularly if you have difficulty documenting your income
If you're looking for the best rates, your credit score should be above 660, but some mortgage programs will accept borrowers who have scores below the 660 range. This will depend upon the type of mortgage program and other compensating factors of the application such as down payment, income and assets or savings.
A credit score of 660 will still qualify for a loan with a low rate. There are many government programs available to make your loan more affordable. A mortgage broker will be able to evaluate your alternatives and suggest the right mortgage loan for your situation.
With a 660 credit score you still have a great chance to qualify for a conforming loan as long as your credit profile is good. Your mortgage broker can run your loan through an automated underwriting engine that will use more then just your credit score to issue loan approval. It will look at things such as amount of financial reserves, debt to income ratios and percentage of the property value being loaned against.
A credit score of 660 is usually plenty to obtain a loan approval through a government insured loan such as FHA or VA Financing. As long as you can verify your income and meet the minimal asset requirements you should have a good shot at qualifying. Contact a mortgage professional who has experience in offering government insured loans for your options.
Fannie Mae's MyCommunity Loan offers 100% financing to borrowers even if their credit score is under 660. This program has reduced PMI in many cases as well for buyers. This is a great program for first-time home buyers with limited down payment funds.
