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Can I get a conventional mortgage with 5% down and low credit score

My husband and I have had some credit issues in the past - we currently own a property and we are looking to sell it and buy another. We are looking to buy a $525,000 condo with 5% down (loan of $498,750). He has a medium credit score of 623 and I have a 620 medium score. We have a household income of 172,500K a year and we have monthly debts of $3000 a month. Is this possible. We live in New Jersey. by nejflo_478_806 from New York, New York. Jan 29th 2013 Reply


Steven Ceceri (CreativeFinancingOptionsGroup)
#36 ranked lender in Massachusetts - 723 contributions

Good Evening. First, your consumer credit score is not the same model used for mortgage credit scoring files. Second, if the condo is not FHA Approved, it is likely that it is not Fannie or Freddie Approved either. Third, you would likely need to increase your down payment and look for a viable condo association to consider for any possible condos for sale. There is a condo questionnaire that would need to be completed which would detail the number of units in the complex, the number rented, the number owner occupied, as well as if any one one person owns more than 10% of the total number of units. This information along with the association's financials would be needed for full review. Working on your file with a Knowledgeable and Trusted Mortgage Professional would be my top recommendation seeing you do have some things to work on and the right person would be able to guide you through the process to accomplish your goals in a very timely fashion. I'd be happy to help you if you'd like. Thank you and do enjoy the evening!

Jan 29th 2013
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Low credit score, condo, loan amount over $417K, are all against you... Income and Debt to Income ratio, all in your favor.. You're better off trying to improve your credit score.. The quickest way is to pay down your revolving debt.. if you get it below 30% of your allowable credit, (ideally under 25%), you should see a substantial increase in your score.. if you get your score to 680 it will open up a bunch more options, but in any situation, you will still need more than 5% down.. a minimum of 10%... 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

Jan 29th 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

Not on a conventional or High Balance loan. We would need some more information to come up with a solution to your challenge. If you went with an FHA loan yes you could. On the conventional loan you would need 10% down on anything over 417,000 loan amount.Give us a call and we can discuss your options, look at your credit and come up with a solution. Call us at 201-962-3555 or email us at Team@BestMortgageOption.com. We will find the Best Mortgage Option to help you achieve your goals! ask for Michelle or Benny

Jan 29th 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

We would be glad to go over your credit and see what can be done now to get your scores up. Obviously having higher scores will benefit you not only for your mortgage transaction but on just about everything from car loans to insurance.Thanks,Team Best Mortgage Option helping clients realize their dreams!201-962-3555

Jan 29th 2013
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Matt Pollina (matt@smartmtgs.net)
#58 ranked lender in Illinois - 40 contributions

There are lenders that will do a Jumbo loan (which is a loan over $417k) up to 90%. They are out there, you just have to look around. The FHA loan will depend on what county the property is in. For example, Atlantic county FHA loan limit is $453,750 but Hudson county is $729,750.

Jan 29th 2013
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I should have noted I do not think the condo is an FHA building, so I do not believe I can get FHA loan on it.

Jan 29th 2013
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Andrew Alfonso (CashCow)
#43 ranked lender in Florida - 271 contributions

There are lenders that will do a Jumbo loan (which is a loan over $417k) up to 90%. They are out there, you just have to look around. The FHA loan will depend on what county the property is in. For example, Atlantic county FHA loan limit is $453,750 but Hudson county is $729,750. Andrew Alfonso - 800 813 3291

Jan 29th 2013
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Steve Azarch (sazarch)
#18 ranked lender in Tennessee - 93 contributions

I do not think you will be able to get because of your score too low, being a condo with 95% ltv on a loan amount over $417,000

Jan 29th 2013
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Andrew Alfonso (CashCow)
#43 ranked lender in Florida - 271 contributions

Give me a call -- Would love to speak with you - Andrew 800 813 3291

Jan 29th 2013
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Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

The conventional loans are credit score driven in Terms of the rate you will qualify for. FHA is not. You will qualify for a much lower rate thru FHA.

Jan 29th 2013
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Sharon Duffy (sduffy)
#71 ranked lender in Pennsylvania - 595 contributions

Why you don't you give me a call if you live in New Jersey. My company is located in New Jersey and we also lend in NY, We can go over your scenario ...Sharon 732 606 6264

Jan 29th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,944 contributions

Respectfully... Stop looking at houses and work on repairing your credit. Most people can improve their scores in a few months with good advice and a little work. Sit down with a local NON-Bank lender. Let them review your situation, give you some guidance... and you should be in the lender good graces in short order allowing you to successfully purchase a home in today's market!

Jan 29th 2013
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

I may be able to help you but would need some more information. We are Direct Lenders Here in New York, New Jersey, Penn, and Conn. Call or email me so I can get a better understanding of your situation. Peter Botros, PBotros@OmegaLoans.net 908-933-0253 office 347-231-4444 cell. A 5 minute conversation is all I would need in order to see if I am able to help or not.

Jan 29th 2013
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