Are there lenders that will work with a 644 fico

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Are there lenders that will work with a 644 fico

Johnny Scott
Medford, NY 路 Member since 2021 路 15 posts 路 2 votes

The lenders that I have come across have all asked that my fico be at a 680 or above to start doing business with them. I was trying find out if anyone knew a Lindethat was willing to work with a 640 score 644

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Marty JohnstonPro Member
Lender 路 Wauwatosa, WI 路 Member since 2016 路 571 posts 路 203 votes
3y
Quote from @Johnny Scott:

The lenders that I have come across have all asked that my fico be at a 680 or above to start doing business with them. I was trying find out if anyone knew a Lindethat was willing to work with a 640 score 644


Everyone else asked all the right questions. In short Johnny, without knowing more information it's hard to say if that's realistic or not. 680 is not a minimum score for Conventional QM even, however it may require a greater down payment than the minimum. You can still do a conventional mortgage with 20% down with as low as 620 credit and still be okay - just don't expect good rates!

Alternatively, you also would have options with DSCR lenders down to 640 (assumes mid score is >640). But you'll again be capped on max leverage and rates will be ugly, especially in our given market with how mortgage bonds have shifted here in February (thanks PCE, CPI and Employment reports!)

Lastly, I tell everyone, if long-term buy and hold is the name of the game, you will save yourself an incredible amount of money, interest, and imcreases your COC return by working on credit. Credit is a racket to some people, but it's a very necessary evil for credits to have somewhat of a baseline model to credit worthiness. Albeit different industries use different scoring models (hence why your Kredit Karma or Credit Sesame tells you something totally different than your mortgage LO), they're needed to grow our business most effectively when needing institutional capital.

All that said, if you'd like an introduction to an amazing credit repair husband and wife team, let me know. Free consults with them to strategize, very fair costs, etc. Just PM for that. 馃憤

[email protected]414-600-0123
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  • Devin PetersonBusiness Member
    Lender 路 Sarasota, FL 路 Member since 2022 路 2k+ posts 路 664 votes
    3y
    Quote from @Johnny Scott:

    The lenders that I have come across have all asked that my fico be at a 680 or above to start doing business with them. I was trying find out if anyone knew a Lindethat was willing to work with a 640 score 644


    What is the purpose of you deal? Primary, investment? A good primary broker should have program that goes down to 580

    [email protected]860-538-3672
    ProAlpha Capital56 Reviews
    WebsiteView Page
    0Reply
  • Michael Hutchinson
    Lender 路 Fort Mill, SCinstal 路 Member since 2016 路 68 posts 路 64 votes
    3y
    Quote from @Johnny Scott:

    The lenders that I have come across have all asked that my fico be at a 680 or above to start doing business with them. I was trying find out if anyone knew a Lindethat was willing to work with a 640 score 644


     Question is a little vague and you need to give us more details.   For reference, here is the Fannie Mae Eligibility matrix and it might help you when you expand on your question.  Lenders use this for QM loans.  

    https://singlefamily.fanniemae...

    Also, most lenders can help with credit at no fee.  Raising a customer from 600 to 620 or 640 is normally very easy unless you are running into massive collections or bankruptcy in my experience. 

    1Reply
  • Eliott Elias
    Investor 路 Austin, TX 路 Member since 2021 路 9k+ posts 路 5k+ votes
    3y

    Try DSCR. You need to fix your credit ASAP.

    0Reply
  • Corby GoadeBusiness Member
    Investor 路 Boise, ID 路 Member since 2014 路 3k+ posts 路 3k+ votes
    3y

    You're not too far off, work on your credit and get it up there. You should be able to do that in a matter of months. 

    You always have the option of house hacking a small multi with FHA which is the BEST way to start a portfolio anyhow.

    There are always options, don't let this  hold you up. 

    1Reply
  • Chad Davis
    Lender 路 Richmond VA 路 Member since 2012 路 301 posts 路 30 votes
    3y

    More specific. Owner occupied, non owner, purchase, refi?

    0Reply
  • Marty JohnstonPro Member
    Lender 路 Wauwatosa, WI 路 Member since 2016 路 571 posts 路 203 votes
    3y
    Quote from @Johnny Scott:

    The lenders that I have come across have all asked that my fico be at a 680 or above to start doing business with them. I was trying find out if anyone knew a Lindethat was willing to work with a 640 score 644


    Everyone else asked all the right questions. In short Johnny, without knowing more information it's hard to say if that's realistic or not. 680 is not a minimum score for Conventional QM even, however it may require a greater down payment than the minimum. You can still do a conventional mortgage with 20% down with as low as 620 credit and still be okay - just don't expect good rates!

    Alternatively, you also would have options with DSCR lenders down to 640 (assumes mid score is >640). But you'll again be capped on max leverage and rates will be ugly, especially in our given market with how mortgage bonds have shifted here in February (thanks PCE, CPI and Employment reports!)

    Lastly, I tell everyone, if long-term buy and hold is the name of the game, you will save yourself an incredible amount of money, interest, and imcreases your COC return by working on credit. Credit is a racket to some people, but it's a very necessary evil for credits to have somewhat of a baseline model to credit worthiness. Albeit different industries use different scoring models (hence why your Kredit Karma or Credit Sesame tells you something totally different than your mortgage LO), they're needed to grow our business most effectively when needing institutional capital.

    All that said, if you'd like an introduction to an amazing credit repair husband and wife team, let me know. Free consults with them to strategize, very fair costs, etc. Just PM for that. 馃憤

    [email protected]414-600-0123
    4Reply
  • Randy Rodenhouse
    Investor 路 Charleston, SC 路 Member since 2011 路 606 posts 路 413 votes
    3y

    Hey Johnny,  I will answer your question a little differently.  I assume you are looking to buy a property for either an investment or for yourself.  Either way another approach (while you work on improving your credit score) is to look for houses where the seller is willing to seller finance or possibly do a long term lease option with the seller.  If you show the ability to pay for several months then many lenders will take that into account.  Most seller that would do seller financing are not so hung up on the credit score.  A second way is to find a private lender who may have a lower credit requirement.  However, you have to have a carefully planned exit strategy when using private funds since the interest rates are usually higher.  

    4Reply
  • David Bilandzija
    Lender 路 Venice, CA 路 Member since 2021 路 189 posts 路 132 votes
    3y

    @Johnny Scott You have options but they carry some limitations. Minimum mid FICO of 600 can get you in the door at a reduced LTV, 60%. Loan must be for business purpose, investment/non-owner occupied. 1-4's, 5+ unit multi-family and commercial properties are eligible.

    0Reply
  • Reid Chauvin
    Lender 路 Nashville TN - Licensed in AL AR DC FL GA LA MD TN, TX and VA 路 Member since 2021 路 583 posts 路 338 votes
    3y

    @Johnny Scott - if you are trying to buy a primary residence, a 640 score is allowable and you will probably want to use an FHA loan. If you are trying to buy an investment property you will likely be leveraging a Conventional loan, which does allow for a 640 score but there will be other limitations that will make it tough. If your score is below 680 I believe your minimum down payment amount is 25% down, your max Debt to Income ratio is less than otherwise (maybe 36%), and you may be required to have reserves in addition to the funds being used to cover the upfront costs.

    0Reply
  • Luka Milicevic
    Real Estate Agent 路 Nashville, TN 路 Member since 2015 路 2k+ posts 路 2k+ votes
    3y

    How many lenders have you spoken to? 

    I had a friend that was doing a deal back in 2016 that was a bit of an odd ball. It had a house and a converted barn. He spoke to 21 lenders total. The first 20 said they would not touch it. The 21st lender agreed to fund it. 

    Sometimes you just have to keep looking until you get the right lender. In your case I don't see you not finding a lender that can help you with that score. It's not a greeat score, but also not terribl.e 

    0Reply
  • Jim Duncan
    Banker 路 Tampa, FL 路 Member since 2023 路 39 posts 路 19 votes
    3y

    Hey Johnny... What everyone else already said is good input. Your credit score is essentially just one variable amongst several that lenders look at to decide if the risk is worth the return in lending to you. If one variable, like your credit score, is lower, you can often make up for that by showing other variables, like income, assets, down payment, or accepting an interest rate, that are higher to offset the risk of the lower credit score. In short, there's tons and tons of lenders and loan programs out there, and many people with lower credit scores than that get financing. I think you'll find plenty of options if you look around.

    0Reply
  • Johnny Scott
    OP
    Medford, NY 路 Member since 2021 路 15 posts 路 2 votes
    3y

    Are there any or does anyone know of any hard money lenders who are willing to work with a 644 fico score? If anyone knows of any lenders I would prefer one that allows the loan to be converted to 30 year. Bigger pockets community help.

    0Reply
  • Marty JohnstonPro Member
    Lender 路 Wauwatosa, WI 路 Member since 2016 路 571 posts 路 203 votes
    3y
    Quote from @Johnny Scott:

    Are there any or does anyone know of any hard money lenders who are willing to work with a 644 fico score? If anyone knows of any lenders I would prefer one that allows the loan to be converted to 30 year. Bigger pockets community help.


    Johnny, there are lenders who offer DSCR loans down to 640 on a 30-yr! Rates aren't fun, especially in our current market, but they're certainly obtainable. Sending you a DM for more info.

    [email protected]414-600-0123
    0Reply
  • Steve Flynn
    Member since 2023 路 14 posts 路 2 votes
    3y

    Yes, there is at least one.

    0Reply
  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker 路 Member since 2016 路 4k+ posts 路 2k+ votes
    3y
    Quote from @Johnny Scott:

    The lenders that I have come across have all asked that my fico be at a 680 or above to start doing business with them. I was trying find out if anyone knew a Lindethat was willing to work with a 640 score 644


     Stop.  Fix your credit issues and then buy.  You're putting the cart before the horse.  

    You will save yourself an outrageous amount of money if you have a credit score that's above 700.  It may take some time to get there, but it will be worth it because the money is cheaper, the loan to values are higher and your out of pocket expense will be less.

    If you have the money for down payment at your current score, take at least a portion of that money and follow the instructions on a "What if" scenario or "Wayfinder" scenario a credit report.  Following those steps alone will jump your score up.

    Real estate is not for the impetuous or impatient.  There's an old adage "you make your money when you buy" in real estate and buying with high interest, at the top of the market with low ltv only costs you money.

    0Reply
  • Nick BelskyBusiness Member
    Residential and Commercial Broker 路 Member since 2021 路 1k+ posts 路 704 votes
    3y

    @Johnny Scott

    Yes.  Several still work with borrowers who are down to 600.  Just have to have the right resources.

    Are you working with a mortgage broker?

    Cheers!

    [email protected]
    Belsky Mortgage, LLC527 Reviews
    WebsiteView Page
    0Reply
  • Mike Klarman
    Specialist 路 NJ 路 Member since 2022 路 1k+ posts 路 649 votes
    3y

    I've seen lenders that say they do not pull credit  at all and I've seen as low as 600.  I can't speak to the closing process as I've never done business with them but they are out there.

    0Reply
  • Daniel Baccarini II
    Lender 路 Member since 2022 路 32 posts 路 8 votes
    3y
    Quote from @Johnny Scott:

    Are there any or does anyone know of any hard money lenders who are willing to work with a 644 fico score? If anyone knows of any lenders I would prefer one that allows the loan to be converted to 30 year. Bigger pockets community help.


    There are hard money lenders that will work with your credit score range. I would be curious about what the numbers are for investments that you are looking at (purchase price, rehab, and ARV). The challenge that I've seen for investors with lower credit scores is that the both the interest rates and leverages/borrowing ability are not favorable in this current market environment.

    0Reply
  • Marc Dube
    Lender 路 Augusta, ME 路 Member since 2014 路 55 posts 路 21 votes
    3y

    As a mortgage underwriter and loan officer I can tell you that FNMA and FHLMC will both lend to a 644 fico (the middle of 3 scores) what will happen is that your rate will be higher because of your low score, but you won't be disqualified just because of your score. You will have to show the ability to pay and your debt ratios will be maxxed out at 45-50%, depending on what type of home you are buying. If you are looking to buy an investment property, then you'll need 15% down for a 1-unit home and 25% down for a 2-4 unit home. You will also need reserves after the closing, typically at last 6 months of reserves, so count your dollars to make sure you have enough funds for all of it. What could happen also is that if your rate and points become too high you will fall into the HCML, or high cost mortgage loan area, normally called Section 32/25 and then you'll have difficulty getting financed. That typically happened on small loan amounts because of the fees and points on an investment property. If you are buying a primary home you may want to consider FHA. You'll have pmi but your rate could be lower than conventional. Good luck

    0Reply
  • Dave Skow
    Lender 路 Seattle, WA 路 Member since 2014 路 2k+ posts 路 899 votes
    3y

    @Johnny Scott- yes  - there are  lenders  that  should be able to  assist  with a  644 score

    0Reply
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