Hi, guys, Agata here from Dolfin RGV. We buy houses in Hidalgo County Texas and we usually pay cash. We are a local company that works in McAllen and all around the Rio Grande Valley area. We buy, remodel and sell properties in the Valley. We work with homeowners that go through many hardships, foreclosure, divorce, need to relocate, have lost their jobs and cannot afford the payments, every situation is unique and we try to understand each case to provide a win win solution.
The question we get a lot from our customers and from our friends is, “Can I afford a house and what credit score do I need to buy a house and to get a mortgage?” Well, there are different requirements from the lenders. The best mortgage you would like to find is the FHA loan. FHA loans are less risky for the lenders because they are backed by the Federal Housing Administration and they have really good rates, usually around 3% or less, depending on your credit score and situation. And also, you can get a loan depending on your credit score, having to give 3.5% down or 10% down. So if you don’t have too much money for a downpayment or it is your first purchase, it’s a great option; FHA is a great way to get a house for a first time home buyer.
Usually, they say the minimum credit score is 580, however, most of the lenders will ask you for a credit score of 620 to 640 to get the loan. Sometimes they will work with you if you are in the 600s, a little close to the 620’s, they can work with you to improve your credit. You will have to wait to bring your credit score up, and there are many ways you can do it. So you need always to be checking your credit score, to see where are you at now? Improving your credit score can take some time and some steps, but definitely everybody can improve their score.
And the other hand, there are the conventional loans. For the conventional loans you need a higher down payment to get your house. The houses don’t need so many requirements as the FHA loans, but the down payment can be substantial, usually like 20% down. There’re ways around it, you can get a PMI, which is a Private Mortgage Insurance, to help you with the down payment at an extra cost. A really good loan, if you are a member of the Military or National Guard, or if you are in the reserves, is the VA loan. The VA loans have really good terms and if you qualify, I would highly encourage you to get one of those VA loans. Thank you for your service!
Some other loans that are there, can be remodeling loans. Some people have a house that is not up to date, or they purchased a house that needs a lot of work and they need to remodel, so they are can get a remodeling loan. You will need basically, a credit of 640 or more to qualify for one of those loans.
You may be asking what paperwork do I need? The lenders are going to ask you for some basic paperwork to prove your income. They’re going to require W-2s, pay stubs, some bank statements and tax returns. Usually they will ask you for like two years tax returns, the last two W-2s and the last two or three paycheck stubs to see if you’re worth of credit and you can get one. It’s good to get pre-qualified, so you can be shopping later for the house and get it faster.
At Dolfin RGV, we are not lenders but we work with lot of customers, that need to buy or sell their property. We buy houses, paying cash. Many people have some financial hardships as they need to sell their house fast, get the cash, and then move on, and we can help with that. If you some questions, we are here to help. You can reach us out at our phone number or send a text at: (956) 904 5234 or check our website: https://www.dolfinrgv.com/get-a-cash-offer-today-2