What Credit Score Do I Need To Get Approved For A Home Loan

Dated: 09/02/2016

Views: 187

 Your First step to buying your home!!!

When Buying your home your first step is getting pre-approved.  This process can take a few days now that guidelines have changed.  (In Real Estate the only thing that stays the same is everything is always changing :) ) So before you start shopping for your dream home call an Realtor (ME) today and they (ME) can point you in the right direction with a preferred lender who they have done business with. Our goal is to always try to make your transaction as easy / stress free as possible . But lets be honest buying a home can be very stressful. It is one of the biggest purchases you will ever make in your life! It is also one of the most rewarding purchases and best investments you can make.  That's why using a skilled professional is so important in this process.  You not only want someone with the skills and education, you want someone you can also feel comfortable with, and trust. That way you can enjoy and share this experience with the right person! 

There are lots of options to getting you into a home. FHA is one of the most common Loans. all you need is a 580 or above credit score with 3.5 % down (so if home price is 100,000 you would need 3,500 down, the financing portion *loan amount* will be 96,500.00 ) not including closing cost. Sometimes you can get seller to pay closing cost depending on how the market is doing. USDAis a great Loan only available in USDA MAPPED AREAS . It 's 0% down with a 640 + credit score, (not including closing cost.) with USDA always ask lender for guidelines. I have had clients receive their earnest money back at closing and have payments less than getting into a lease in our area! Sometime closing costs can be rolled in to USDA loan.  VA is another 0% down loan with a 620+ credit score, same terms apply on each loan closing cost are not included. 

In the Austin and surrounding areas there are other grants and assistance out there to help you get into your future home.  Below I have the different loans and basic information provided by an amazing lender my clients use often. Sometime the best way to start is by applying and seeing what the lender thinks best suits you in your situation.  If you don't know your credit score or need a little work usually they can help guide you with some advise or send you to a reputable credit repair company that can bring your credit score up in a timely manner.  You can apply now by clicking the link below (Apply Here !!!!) it takes about 10 minutes. 


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Overview The FHA Credit Scores 580- 639 program is designed for borrowers who may not otherwise be able to qualify for a loan due to low credit scores or unverifiable income. 

Eligible Loan Programs 

• 203 (b) - Most frequently used, Purchase or Refinance,1-4 Unit Properties• Energy Efficient Mortgage - may be used with most FHA property and loan types• Good Neighbor Next Door - Available on some HUD-owned properties. HUD may subsidize up to 50% of the purchase price for civil servant borrowers.• 203(h) Disaster - increased financing for victims of natural disasters Loan Terms• 15, 20, 25, and 30 - year fixed• Jumbo loans allowed with 30 - year term only Borrower Eligibility• U.S. Citizens• Permanent Resident Aliens• Non-Permanent Resident Aliens• Non-Occupant Co-borrowers 

***Each borrower must have at least two credit scores. Maximum Loan Amount varies by county. Seller contributions allowed up to 6%.


Overview The USDA Rural Housing program provides low- and moderate-income rural residents with better access to affordable housing finance options with little or no down payment or out-of-pocket costs. Borrowers may obtain a loan to purchase a new or existing home that is located in a designated rural area. 

The USDA Rural Housing Loan Terms 30-year fixed Purchase/Rate & Term Refinance Loan Amount Loan amount is based off of the lesser of the following: • Current conforming loan limit, excluding the guarantee fee OR • 100% of the appraised value, excluding the guarantee fee Borrower Eligibility U.S Citizens Permanent Residents USDA Loans limited to one loan per borrower and co-borrower Ratios Standard eligibility ratios are 29-41% but can exceed with a GUS approval of up to 50% max DTI FICO Minimum 640 


Over view  VA helps Service members, Veterans, and eligible surviving spouses become homeowners by providing a home loan guaranty benefit to help borrowers and their families achieve the dream of home ownership.

V.A. Program Highlights • High LTV with No MI • Interest Only Option • Sources of Income Can Include: Asset Depletion Calculation and Restricted Stock Units • Up to 50 Acres • Non-Traditional Credit Allowed • 100% gifts from family members LTV and FICO Parameters Purchase/Rate & Term Refi • Owner-occupied up to $2.5M with 90% LTV and 680 FICO • Second Homes up to $1.5M with 80% LTV and 700 FICO (720 for I/O option) Cash-Out Refi • Owner-occupied up to $1.5M with 80% LTV and 660 FICO Property Types • SFR • 2-4 Unit • Warrant-able and Non-Warrant-able Condos – detached and attached Minimum Loan Amount Conforming limit plus $1 DTI Max DTI = 50% (Max DTI requirement may be lower, depending on program parameters) Eligible Borrowers • U.S. Citizens • Permanent and Non-Permanent Resident Aliens • Non-arms-length trans 

Overview Through the TX Vet Program, eligible veterans have an opportunity to purchase a primary residence with a low interest loan with little or no money down. Borrowers must be approved by the VLB before proceeding with application.  

TX Vet Program,Program Features 

• Low interest rates• Disabilities Discount for qualifying borrowers• Gift funds allowed• No First-time home-buyer requirements Loan Types/Terms FHA/VA/Conventional30, 25, 20, or 15-year, fixed rateBorrower Eligibility• Must be at least 18 years old• Must be a bona-fide and legal resident of Texas and meet other service-related requirements FICO Requirements FHA/VA/Conventional = 620DTI = Follow AUS for FHA/VA, 45% for Conventional Loans Max Loan Amount Max TOTAL loan amount = $417,000 (Not to exceed FHA county loan limits. Must include up-front MIPor funding fees.) Program OptionsDisabilities Discount - rate reduction of .50% for qualifying veterans Disaster Relief Initiative - rate discount for borrowers who qualify.

Overview The Foreign National Program provides financing that makes buying a U.S. home easier for non-U.S. Citizens. 

The Foreign National Program ,Program Features• Domestic Credit Report NOT required• Second Homes and Investment Properties allowed Loan Terms 30-year fixed5/1 ARMLTVs Second Home up to 70% with max loan amount of $625,000 Investment Property up to 50% with max loan amount of $1,000,000 Borrower Eligibility• Foreign National Borrowers are defined as individuals that do not reside within the United States, do not possess a Green Card or Visa,do not work within the United States, and have a primary residence within their country of origin or country of residence.• US Citizen borrowers allowed with valid credit report. FICO/DTIFICO = 680 *FICO minimum is required only if a domestic credit report is obtainable. DTI = 43%

Overview Loan program that provides options for borrowers with low FICOs as a result of recent housing events. 

Fresh start Program Features 

• Bankruptcy/Foreclosure/Deed-In-Lieu/Short Sale• Low Minimum FICO• Multiple Housing Credit Events• Non-Traditional Credit Allowed Loan Terms 30-year fixed 5/1 ARMLTVs Purchase/Rate & Term Refinance Up to $1.5M with 80% LTV Cash-Out Refinance Up to $1M with 80% LTV Multiple Housing Credit Events Loan amounts up to $750,000 with 70% LTV, 640 FICO, and 43% DTINo payment history required Reserve requirements: 6 months Borrower Eligibility• U.S Citizens• Permanent Resident Aliens• Non-Permanent Resident Aliens• First-Time Home-buyers• Non-arms length transactions FICO/DTIPurchase/Rate & Term Refinance = 580Cash-Out Refi = 640DTI = 50%

Overview The Texas Department of Housing and Community Affairs (TDHCA) features a competitive fixed interest rate and down payment/ closing cost assistance. These TMP funds can be completed with TDHCA’s Mortgage Credit Certificate (MCC) Program, which provides maximum benefit to the borrower in further increasing affordability of the home. 

Texas Department of Housing and Community Affairs (TDHCA) Program Features

 • Deferred/repayable down payment assistance at 0.00% interest• No minimum borrower contribution• Available in the entire State of Texas Loan Types Conventional (HFA Preferred)FHA/VA/USDA***Purchase loans onlyBorrower Eligibility• First-Time Home-buyer Requirement applies• Home-buyer Education required FICO/DTI Requirements FICO = 640DTI = 45%Down Payment Assistance Government Loans• Assistance amount = 4% of the total loan amount at 0.00% origination Conventional (HFA Preferred) Loans• Assistance amount = 5% of the total loan amount at 0.00% origination• Assistance amount = 4% of the total loan amount at 2.00% origination

The 5 Star Texas Advantage Program (SETH) provides eligible home buyers with several great options for a loan program that meets their needs and provides maximum benefit. 

The 5 Star Texas Advantage Program (SETH) Program Features 

• Assistance is in the form of a NON-REPAYABLE grant.• No recapture tax• No First-Time Home buyer requirement Loan Types FHA/VA/USDA Conventional (Freddie Mac HFA Advantage) Option Available (max 95% LTV)***Purchase loans only Borrower Eligibility• Home buyer Education required• Non-Citizen applicants follow Agency guidelines FICO/DTI Requirements• FICO for FHA Manual Underwrite = 640 or 660• FHA/VA/USDA FICO = 660• DTI = 45% Down Payment Assistance All options have an interest rate of 0.00% with NO monthly payments. Assistance amounts are between 3% and 6% of the total loan amount. DPA amounts decrease depending on the rate and FICO. (Check eHousing Plus website for current rates and offerings.) Geographic Restrictions Entire State of Texas except the limits of the following counties: Grand Prairie, El Paso, McKinney, and Travis

Overview The Travis County Housing Finance Corporation’s Hill Country Home DPA Program is designed to help home buyers obtain FHA, VA, or USDA loan financing to purchase a home anywhere in Travis County, including the City of Austin 

The Travis County Housing Finance Corporation’s Hill Country Home DPA Program Features 

• Down Payment Assistance is in the form of a non-repayable grant with a 0.00% interest rate.• No Recapture Tax• No purchase price limits• No First-Time Homebuyer requirement Loan Types FHA/VA/USDA***Purchase loans onlyBorrower Eligibility• Home-buyer Education required (for First-Time Home-buyers)• Non-Citizen applicants follow Agency guidelines FICO/DTI and Down Payment Assistance Minimum FICO = 640Max DTI = 45% Assistance Amount for FHA Loans:• Assistance amount = 5% of the total first mortgage amount with FICO of 660+• Assistance amount = 4% of the total first mortgage amount with FICO 640-659 Assistance Amount for USDA/RD and VA• Assistance amount = 5% of the total first mortgage amount with FICO of 640+ Geographic Restrictions Anywhere in Travis County, including the City of Austin; however, properties located in the City of Austin but not in Williamson County are not eligible

Thank you for reading as always dont forget to like me on facebook. & Follow me on twitter @Realtorwilco . If you know anyone thinking about buying or selling send them my way!


Information herein deemed reliable, but not guaranteed. Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. Please acknowledge receipt of this information upon first contact. https://remaxvisionhutto.files.wordpress.com/2016/02/iabs.pdf
This firm is licensed and regulated by The Texas Real Estate Commission (TREC). Complaints or Inquiries should be directed to: Texas Real Estate Commission P.O. Box 12188 Austin, Texas 78711-2188 
(512) 936-3005


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