What does my credit score need to be to purchase a home?
Your credit score can be as low as 550 to get pre approved for an FHA loan. Your credit score to get pre approved for a conventional loan would need to be at least a 620 (some mortgage companies require a 640).
What is the difference between an FHA loan and a Conventional loan?
FHA loans are insured and backed by HUD (Department of Housing and Urban Development). FHA loans tend to be more lenient as it relates to credit (scores as low as 550). Also, FHA loans requires you to have your mortgage insurance wrapped into the loan.
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Conventional loans aren't backed by the government. Normally require a minimum credit score of 620 or higher. Down payment minimum of 3% or higher. Your mortgage insurance doesn't necessarily have to be wrapped in your mortgage, but will require more down payment.
How long do I need to be on my job?
There's no specific time to be on a specific job, but you need 2 or more years of stable work history in the same and/or similar field.
Can I buy a home if I'm self employed?
Yes. You'll need to have proof of self employment along with proof of income from your business with your bank statements. You must provide evidence of current work/on-going operation.
Can I buy a home if I have ever filed a chapter 7 or chapter 13 bankruptcy?
Yes, but there is a waiting period.
For FHA:
Chapter 7 you must wait two years from date of discharge.
Chapter 13 you must have 12 months of on time payments and court approval.
For Conventional Loan:
Chapter 7 you must wait a period of 4 years from discharge.
Chapter 13 you must wait 2 years from discharge or 4 years from dismissal.
I'm ready to buy a home. What's the first step should I take?
If you're ready to buy a home, the first step would be to find a real estate agent and get pre-approved. Once you get pre-approved, then you'll know how much house you qualify for and can start your search for your dream home.