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Credit Score. Credit score requirements for conventional mortgages vary by lender; however, in most cases the minimum credit score for a conventional mortgage is 620. Some lenders, however, will underwrite mortgages with credit scores as low as 580; it is simply up to each lender as to what score is the cutoff.
Last edited by photogal9; 07-15-2018 at 04:23 PM..
Credit Score. Credit score requirements for conventional mortgages vary by lender; however, in most cases the minimum credit score for a conventional mortgage is 620. Some lenders, however, will underwrite mortgages with credit scores as low as 580; it is simply up to each lender as to what score is the cutoff.
Do you really think I would be this picky about offers and not have preferred lenders who don't give out loans like candy to people with a score below 680? I have a whole hierarchy of traits for desirable offers. Lucky for me I am in invested in markets where I can afford to be choosy and lots of people have cash.
Why do you care how much they put down. I will say that the VA loan will have more stringent requirements on repairs.
VA loans, because so little is required for a down payment, is a lot pickier and trickier about the condition of the house.
We sold our house in Feb. We had multiple offers (dropped one immediately - too low). We had conventional with 20% down but $10k less than the other which was $10k higher w/a VA loan. Conventional with 20% or even 10% down was the better and safer route.
Do you really think I would be this picky about offers and not have preferred lenders who don't give out loans like candy to people with a score below 680? I have a whole hierarchy of traits for desirable offers. Lucky for me I am in invested in markets where I can afford to be choosy and lots of people have cash.
You most definitely have a hierarchy, boarders on elitism, IMO. If that works for you, terrific.
Last edited by photogal9; 07-15-2018 at 06:24 PM..
You most definitely have a hierarchy, boarders on elitism, IMO. If that works for you, terrific.
Its all about business. I don't like my transactions to fall through. And I don't like dealing with people who don't make good financial decisions. From experience as a seller, they always want the sun moon and stars.
The moral of the story is, there are a lot more people out there, screening a lot more than what you think as a buyer. Its always good to present the most attractive offer to the seller. Because, given two "qualified" offers, the seller will have their own (sometimes strong) opinions about which one passes muster. And every single time I speak from my own opinion on this board, the whining begins. I could give a flip that people don't like it. But its worked out swimmingly for me. Just hope you never fall in love with a property and have a seller like me holding the keys if you have some kind of lackluster "no money down" offer.
(FWIW, "borders" is the spelling of the word you were looking for in your sentence above. Misspelled "about me" letters will also get your offer eighty sixed.)
Not sure what the conversation is, but, if talking about if a deal will fall through; I think there is around a 3.6% rate on VA loan applicants not making it through underwriting, but this is just off the top of my head.
Other than that, I have zero care about a person's credit, savings, investments, history, etc. Money is all the same to me regardless on how it gets in my pocket.
VA loans, because so little is required for a down payment, is a lot pickier and trickier about the condition of the house.
We sold our house in Feb. We had multiple offers (dropped one immediately - too low). We had conventional with 20% down but $10k less than the other which was $10k higher w/a VA loan. Conventional with 20% or even 10% down was the better and safer route.
But...what did you really know about that VA buyer? Did you know his/her true financial history? How much money they had overall? Their credit score? You may have walked away from $10,000.
I can’t speak for others replying here, but it just seems to me that the fact that it’s a veteran using a benefit he/she put their life on the line for to earn is a good enough reason for many to summarily reject a buyer.
But...what did you really know about that VA buyer? Did you know his/her true financial history? How much money they had overall? Their credit score? You may have walked away from $10,000.
I can’t speak for others replying here, but it just seems to me that the fact that it’s a veteran using a benefit he/she put their life on the line for to earn is a good enough reason for many to summarily reject a buyer.
No to beat this dead horse further, but my only bad experiences with transactions falling through in over a dozen properties in the last decade were no money down buyers. There are other zero down loan vehicles than a VA loan (though one of them was a VA loan.) Their aspirations were bigger than their bank accounts and in all cases the buyer wanted help with closing, tons of unnessecary repairs and still the deal fell through due to lack of funding on their end. One was spending scads of cash on cars while trying to get a house and barely had enough to do that much less add to his fleet of vehicles.
Because there is no true way to know how much money anyone has -- a buyer could have an offshore account in the Caymans for all I know but look poor as a church mouse on paper--I stick by my no money down = no acceptance. Its based on experience. I am sure many others are more lenient.
Back to the OP's choice, its not a choice at all for me.
Its all about business. I don't like my transactions to fall through. And I don't like dealing with people who don't make good financial decisions. From experience as a seller, they always want the sun moon and stars.
The moral of the story is, there are a lot more people out there, screening a lot more than what you think as a buyer. Its always good to present the most attractive offer to the seller. Because, given two "qualified" offers, the seller will have their own (sometimes strong) opinions about which one passes muster. And every single time I speak from my own opinion on this board, the whining begins. I could give a flip that people don't like it. But its worked out swimmingly for me. Just hope you never fall in love with a property and have a seller like me holding the keys if you have some kind of lackluster "no money down" offer.
(FWIW, "borders" is the spelling of the word you were looking for in your sentence above. Misspelled "about me" letters will also get your offer eighty sixed.)
Correct, it is a business transaction which you take very seriously, as do all sellers and buyers. I understand you where burned once or twice in the past, sh$t happens to everyone, we get over it. You can screen, judge, refuse and make assumptions based on how a buyer chooses to structure their offer, what type of loan they choose to use that a lender has approved them for or that they have earned, based on many factors, which you do not know, you assume you know, but you do not. Then add to it that poorly written letter with misspelled wording (people are stupid, aren't they?) from the buyer who (or is to whom?), fell in love with one of your many properties, and they look like a real P-O-S, don't they? No worries, you'll "eighty-six" them and voila! A cash buyer or a 20% DP buyer with an emotiioo approved lender will present themselves like always and the felicitation will begin once again due to her savvy ways.
Yes, I used the wrong word "boarder" as opposed to "border." It waz layte, eye waz veri tyred and ddnt gve a sht.
Quote:
Originally Posted by emotiioo
I see a no money down loan as a deadbeat buyer.
That is your opinion, that you have made over and over, ad nauseam. You are not the policewoman of the lending world, only over your portfolio of real estate. It is fine, even encouraged to have a point of view from personal experience, however, calling people dead beats based on zero down loans is beyond rude and a generalization from only your past experiences.
Quote:
Originally Posted by emotiioo
I have a lot of my net worth leveraged in property and will be hurt in another crash
Diversify your portfolio. It won't remain a sellers market indefinitely, the market could tank and/if that changes, you will no longer be afforded the luxury of discriminatory selection.
To all VA buyers, good luck to you and thank you for your service.
Last edited by photogal9; 07-16-2018 at 08:15 AM..
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VA Loans
