Blog, Loan Programs, Shopping Secrets

What Does It Take to Get Approved For a Loan?

What does it really take to get approved? 

 That’s a good question and will depend on a few things.  But for the sake of your time we are going to list a few common scenarios that should give you a good idea.  Please call or email us with any questions. 

 

1.  Anyone looking to purchase that meets first time buyer requirements and needs down payment or closing costs assistance.  

(You cannot have owned a “primary” or main home in the past 3 years) 

 - No down payment required! If you purchase before Dec. 1, 2009 using the FHA and are single making less than $75K/yr or married making combined $150k/yr or less.  Minimum “middle” credit scores for anyone contributing income must be 620 or higher.  Full income documentation and disclosure required. 

**The USDA and VA both also offer no down payment programs as well.  Click here to learn about USDA.**

 

2.  Anyone looking to purchase that has their own down-payment money already saved or can save it before executing a sales contract.

- Minimum down payment 3.5% of the purchase price.  The funds for down payment must be in an account in your name for not less than 60 days (2 bank statement cycles) before the “official” loan application is taken and submitted for underwriting.  Minimum “middle” credit scores for anyone contributing income must be 580 or higher.  Full income documentation and disclosure required.

 **Buyers fitting this criteria may still be eligible for the first time home buyer tax credit but will not be able to use it for down-payment or closing costs because of the lower minimum credit score**

 

3.  Anyone needing to refinance an existing mortgage.

- No cash back allowed.  No more than 2 payments can have been made more than 30 days late in the past 12 months.  Minimum “middle” credit scores for anyone contributing income must be 560 or higher.  Full income documentation and disclosure required.

 

4.  Anyone wanting a cash-out refinance, home equity, pool or debit consolidation loan.

- You cannot have made more than 1 mortgage payment more than 30 days late in the past 12 months.  Minimum “middle” credit scores for anyone contributing income must be 660 or higher.  Full income documentation and disclosure required.

** We do offer additional cash-out loan options but they are on a case-by-case basis – please call us.**

 

5.  Anyone needing to refinance an existing FHA  mortgage. (No Cash Out Refinance)

- You must have a current FHA Mortgage and cannot have made more than 1 mortgage payment more than 30 days late in the past 12 months.  Minimum “middle” credit scores for anyone occupying the home must be 500 or higher.  Income and disclosure of liabilities may not be required.  A property appraisal may not be required for this type of loan either.

 

Please note that in today’s rapidly changing market these minimums are subject to change and are the minimum score requirements on 7/1/2009.  Each program is subject to its own income, appraisal and title requirements.