I also pulled one of the reviews from the website…
“I recently used Credit Karma in Canada (where I live) to determine if I would be able to get a mortgage on a new home. My score from them show my credit to be well into the good category at 716. I then approached a company for a mortgage ( I would never have considered this with a bad score). I was contacted within a few hours that my credit score was 618. I asked this company if they had the right name. When I told them my documented score, I was informed that they do not recognize credit Karma’s information. Therefore I find Credit Karma to be useless. I wonder how many others have had doors slammed in their face by this. My wife has not been well and it was very hard on her. Thanks for nothing Credit Karma.”
For my clients, I recommend either Privacy Guard or Credit Check Total to monitor their credit reports and scores. These sites cost about $20-$30 per month to access/track new credit reports and scores. This is the least expensive way that I’ve found to obtain new credit reports and scores that we use for our credit repair service.
Privacy Guard uses a “Credit Xpert” score which is fairly similar to a “FICO score” that banks use to risk grade you for a loan.
Credit Check Total uses a “FICO 8” score which is a generic consumer credit score. This is also very close to a score banks use to grade you.
FICO has designed over 50 different scoring models designed for specific industries (mortgage, auto, credit card, etc..) which will all produce a different 3 digit score ranging from 300-850. Are you confused yet?
If you’re thinking of applying for a loan/credit, go to MyFICO and purchase all of your FICO scores. Their cost is about $60 for all your FICO scores. This will be accurate information that will show you the same scores that the banks will see to approve or deny you.
Share this post with anyone you know that uses Credit Karma!
- Minimum Credit Score is 620
- The maximum loan amount varies by Geographical Area , for 2018 it is between $453,100 and $679,650
- You can use a conventional loan to buy a primary residence, second home, or rental property
- Conventional loans are available in fixed rates, adjustable rates (ARMs), and offer many loan terms usually from 10 to 30 years
- Down payments as low as 3% and 5% depending on Home Ready or straight conventional loan.
- No monthly mortgage insurance with a down payment of at least 20%
- Max Debt to Income Ratio of 50%
- Minimum Credit Score is 500 with at least 10% down
- Minimum Credit Score is 580 if you put less than 10% down
- The maximum loan amount varies by Geographical Area, for 2018 it is between $294,515 and $679,650
- Upfront and Monthly Mortgage Insurance is required regardless of the Loan to Value
- FHA Loans are only available for financing primary residences
- Maximum Debt to Income Ratio of 50% (unless mitigating factors justify allowing a higher DTI) up to 57% in some instances with strong compensating factors.
- 100% Financing
- Cities and towns located outside metro areas-see link (https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp
- Do NOT have to be a First Time Home Buyer
- No Down Payment
- 30 year low fixed rate loans
- No Prepayment Penalty
- Great Low FIXED Interest Rates
- Loan Amounts up to $453,000
- Possible to Roll Closing Costs into Loan if Appraises Higher
- No Cash Reserves Required
- UNLIMITED Seller Contribution toward Closing Costs
- 100% Gifted Closing Costs allowed
- Primary Residents only (no rentals/investment properties)
- Debt to income ratios no more than 45% with GUS approval and 29 and 41% with a manual underwrite.
- Only Need a 580 Credit Score to Apply*** Most USDA loans need a 620 or score higher to get approved through their automated underwriting system called GUS. 640 usually required for an automated approval upfront.
- No bankruptcies (Chapter 7) last 3 years and no foreclosure last 3 years. If Chapter 13 bankruptcy possible to go on after 1 year
KENTUCKY VA Mortgage
- 100% Financing Available up to $453,100
- Must be eligible veteran with Certificate of Eligibility. We can help get this for veterans or active duty personnel.
- No Down Payment Required
- Seller Can Pay ALL Your Closing Costs
- No Monthly Mortgage Insurance
- Minimum 580 Credit Score to Apply–VA does not have a minimum credit score but lenders will create credit overlays to protect their interest.
- Active Duty, Reserves, National Guard, & Retired Veterans Can Apply
- No bankruptcies or foreclosures in last 2 years and a clear CAVIRS
- Debt to income ratios vary, but usually 55% back-end ratio with a fico score over 620 will get it done on qualifying income and if it is a manual underwrite, 29% and 41% respectively
- Can use your VA loan guaranty more than once, and in some cases, can have two existing va loans out at they sametime. Call or email for more info on this scenario.
- Cost of VA loan appraisal in Kentucky now costs a minimum $475 with a termite report needed on all purchase and refinance transactions unless a condo.
- 2 year work history needed on VA loans unless you can show a legitimate excuse, ie. off work due to injury, schooling, education etc.
- You cannot use your GI Bill for income qualifying for the mortgage payment.
As a rule of thumb, however, a credit score below 640 will make buying a home very difficult. A FICO score below 640 is considered sub-prime. In the past there were mortgage companies that specialized in sub-prime mortgages. Because of the challenges in the credit market over the last year or so, however, sub-prime loans have become difficult if not impossible to obtain.
A FICO score between 620 and 650 is considered fair to good credit. But keep in mind, this range of credit scores does not guarantee you will qualify for a mortgage, and if you do qualify, it won’t get you the lowest interest rate possible. Still, to buy a home aim for a score of at least 640, recognizing that other factors weigh in the decision and that some banks may require a higher score.
Senior Loan Officer
phone: (502) 905-3708