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Buying a house for 495k, have 50K to put down, but only approve for Conv. at 417k, with a 622 middle score...any ideas?

by paulprather796 from Orlando, Florida. Aug 14th 2016 Reply


Stephen McWilliam (StephenMcWilliam)
#136 ranked lender in Florida - 45 contributions

The first question is why your score is 622 and what can be done to increase the score short term. Next question, would be if you have 401K funds upon which you can draw sufficient funds to cover the needed funds. Alternatively, will the Seller hold a small junior mortgage. If your score can be sufficiently improved then these other questions are moot. Your lender should have provided you with a credit report that indicates potential increases to your credit score which would be the first place to start. If you don't have that information then contact a lender that knows how to handle this situation; such lender will not be an institutional lender. Feel free to contact my office if you need further advise.

Aug 15th 2016
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,041 contributions

More info needed, but in general, there are options out there, but with a 622, it's unlikely any of these options would work for you.. We have lenders who will do 2nd loan's, either a HELOC or 2nd mortgage, up to 90% combined loan to value (CLTV)... But they require 700 or above credit scores.. There's also jumbo loans.. and jumbo pricing if you are under $750K is only slightly higher than conforming.. but again, most jumbo lenders will not do someone with 622 credit scores.. at least not at 90% LTV.. It's possible you could convince the seller to carry a $28K 2nd loan if you make it tempting enough for them.. If you have a life insurance policy, a 401K, or a paid off RV, auto or boat, you can borrow against that asset and use those funds.. But aside from these options, the only other way to make it work would be to find a home for less $$$ or work on improving your credit scores.. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Aug 15th 2016
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