Credit Question when it comes to mortgages?

Hey Jenny.. Your question is too broad... most lenders want to see 640 mid score or above, but there are lenders who will go lower... some down to 500. The real question is "Why?"... Why is your score 620 to 630. No one here can tell you what your approved for unless they look at your complete profile.. Credit background, job, income, income type, debt to income ratio, etc... And it takes more than just a 640 credit score to qualify for a mortgage.. The best advice I can give you is to contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

First, lets start with the credit score. It is possible to get either a USDA (Rural Development) Loan or an FHA loan with a credit score of 620. Having a high score gives you more favorable terms. Next, how much you qualify for is based upon several factors primarily being your debt-to-income ratio. This ratio considers how much of your gross income is used for housing expenses as well as how much of your income is used for all your monthly expenses. The best thing you can do is sit down with a lender. You should bring copies of the last two years federal tax returns (including W-2's), 30 days worth of paystubs, and bank statements covering the last 60 days.

Jenny,You should be fine, 620 is the lowest we can go but if your above that your good. You may take a small hit on your rate however. With your credit score above 620 then what you will be able to get approved for is going to depend on your income and how much of a down payment you have. Give me a call and I can go through some scenarios in more detail with you. I'm located in Bozeman so I'm very familar with the Montana market. Brady Smedsrud, Loan Officer - Bank of the Rockies, 406.556.1800

Hi Jenny,I would be happy to work with you on a USDA Rural Development Loan. This is one of the last 100% prorgams left and we can work with your 620 Fico score. Once we review your income, assets, and credit we can find a price that is affordable. I am located in Kalispell and have many clients in Missoula :) jbodway@acceptancecapital.com 406-270-7282. Here are some great highlights!oTrue 100% Product with NO DOWN PAYMENTProvides financing for existing homes or new construction using APPRAISED value - Not Purchase PriceoReduced Private MONTHLY MORTGAGE INSURANCE ( PMI ) You can afford more!oNo CASH RESERVES No post-closing reserve requirements for PITI Less upfront cash to close requirements than Conventionally Insured loans or FHAoNo ASSET LIMITS - No PURCHASE PRICE limitsKeep your cash savings & other investments!Purchase a home that meets your needs!oOne-Time Rural Development Guarantee Fee may be FINANCED into the loan ABOVE the Appraised ValueoAvailable to LOW & MODERATE INCOME rural householdsGenerous RD income limits are set for each CountyNo Requirements to be a First-Time-Homebuyero100% GIFTING allowed for all closing costs.6% SELLER CONCESSIONS permitted for closing cost assistanceoNo MAXIMUM LOAN LIMIT - Loan limits are dictated by the applicants income with respect to program eligibility and loan repayment abilityoFully Amortized 30 YR FIXED RATE Loan

You should be fine with your credit scores however, there is more to qualifying than just your scores (open collections, judgments etc.). The amount you can qualify for has nothing to do with the credit score, this is based upon your debt to income ratio including the expense for the new house (monthly credit obligations + total housing payment / monthly income).