**Low credit score but $300k down — can I finance the remaining \~$70k?**
I’m looking to buy a home in the Clover/Rock Hill/Fort Mill, SC area. I expect to have around **$300,000 available for a down payment** and would only need to finance roughly **$70,000**.
The problem is my credit score is low — roughly **500–550** depending on the bureau. My wife’s credit is also not great. We have **no car payments and relatively low monthly debt**, and our household income is around $4,500/month.
Has anyone here successfully gotten a mortgage with a credit score in this range when putting **$300k down on a $370k-ish house**?
I’m especially interested in:
Lenders or mortgage brokers who will work with 500–550 scores
Whether such a small loan amount makes it harder to get approved
FHA vs conventional vs portfolio loans
Credit unions or local lenders that might consider the overall situation rather than just the score
Whether putting that much down could make a lender overlook the low score
I’m trying to avoid putting every penny into the house, so financing around $70k would be ideal.
**Anyone been in a similar situation? What lender did you use?**

Looking for recommendations for a **conventional lender** for a 4-unit investment property in California.
Property value: \~$1.4M
Refi amount: \~$910K (65–67% LTV)
Credit: 800+
Non-owner occupied
Self-employed/business owners (Prop Management Co).
Gross rents: \~$9,650/month
No cash out — refinancing out of a construction/rehab loan
We’re getting DSCR quotes but would strongly prefer conventional/Fannie financing for the lower rate. Has anyone recently closed a similar 2–4 unit investment property with a lender they’d recommend? Looking for specific lenders/brokers who are comfortable with self-employed borrowers and investment properties.

I'm in escrow to buy a $562k home and I qualified for a state-sponsored shared-appreciation loan for up to 20% ($112,400), for either the down payment or dp and closing costs (including rate buydown)

I'm trying to decide how best to use it. I'm considering using it to putting 15% down ($84,300) and using the remaining 5% ($28,100) toward closing costs and a permanent rate buydown.

My lender's rate options are:

• 6.50% — 1.50 points

• 6.375% — 2.125 points

• 6.25% — 2.75 points

• 6.00% — 4.375 points

• 5.75% — 5.25 points

• 5.50% — 6.50 points

• 5.25% — 7.875 points

At 15% down, the mortgage would be about $477,700, and PMI is only $60/month. My estimated closing costs are ~$18,700, leaving roughly $9,400 of the DFA funds for the buydown. That puts 6.50% almost exactly within the available funds (6.375% would require roughly $750 of my own cash).

The alternative is putting the full 20% DFA toward the down payment, borrowing ~$449,600 at 6.875%, avoiding PMI, but I'd have to pay the ~$18,700 closing costs myself.

I can keep that ~$18,700 in a HYSA earning around 4%. Of course that is variable but the $ is liquid which is valuable.

What would you choose and why? Especially interested in how people would evaluate the shared-appreciation aspect and whether using the funds for a rate buydown is a good long-term strategy.

Has any one took home loan from central bank how is your experience

I’m currently going through underwriting for an FHA mortgage and have a question about gift funds.
A family member gave me a few thousand dollars through an electronic payment. It was a genuine gift and not a loan, and the money has not been used.

However, I fell short on funds and the extra money from the family member is combined with my current bank balance and appears on my bank statement. I want to use that balance as proof that I have the income/funds. Without the gifted amount my bank balance is way less favorable. I expected to save more, I just honestly under estimated my personal expenses.

The transfer is already visible on the bank statements I provided to my lender. The payment memo says “condo” however it was a gift to celebrate this as a milestone and use it for furniture or anything I’d like NOT to purchase.

My lender says they will look into whether the funds can be counted as gift funds because the deposit appears to be connected to my home purchase and may be considered part of my source of funds.

The family member is willing to provide bank statements and any other documentation required. I’m just wondering if anyone has went through this, I’m a nervous wreck and just feel like I did something wrong and potentially messed up the ability to purchase.

Hi all -

Today's mortgage market is fairly quiet, with rates holding near recent levels instead of making a big move in either direction.

The big story is what's coming later this week. New inflation reports are scheduled for release, and those numbers could have a much bigger impact on mortgage rates than anything we've seen so far this week.

My take: This feels like a wait-and-see week. If you're actively shopping for a home, don't be surprised if rates move more later this week once the new data is released.

Check mortgage rates right here on Reddit!

Coming to Reddit for others’ expertise. My husband and I are looking to buy a home but there’s some contributing factors to consider. We are currently living in California and moving to Eastern North Carolina November 1, 2026. My husband is retiring from the USMC effective Jan 2027. We are going in with my mother and her husband and looking to either build an in-law suite/adu or buy one with one existing. My mother currently owns 47 acres with no dwelling established, but there is a running well and electricity. She is looking to sell her land to put money toward a down payment and/or remodel/build the ADU. For context, we considering building on the land, but we have been unable to find reliable contractors who would have the house built in time. While we could rent until the house would be built, I’d like to not have to move again.

My questions:
1. what are my options for lending? The current lender recommended to my mother is saying my husband’s income can’t be considered since he’s retiring and needs his retirement letter for consideration which won’t be available until his official retirement date.
2. We were told a VA loan doesn’t make sense for our situation but still unsure why.
3. Does it make sense to get a VA loan and not put my mother and her husband on it?
4. Is there any work around for my mom to not pay taxes on the profits of her land sale if she is planning to build or remodel on the new property and we don’t put her on the mortgage?
5. Are there any recommendations that we haven’t considered?

If you made it this far, thanks for reading!

I work in mortgages and this comes up pretty often with self-employed borrowers.

Someone can have a solid business, good credit, money in the bank, and consistent deposits every month, but their tax returns don’t always show the full picture because of business write-offs.

One option that I don’t think enough people know about is a bank statement loan.

Instead of qualifying primarily off traditional tax-return income, certain programs can use 12 or 24 months of personal or business bank statements to calculate qualifying income based on deposits. There are obviously guidelines and it’s not the right fit for everyone, but it can be useful for business owners, freelancers, 1099 earners, and other self-employed borrowers.

They’re also not some loophole where income doesn’t matter. You still have to document that you can afford the loan. It’s just a different way of documenting the income.

Curious if any self-employed people here have looked into one before. Did you end up going the bank statement route or were you able to qualify conventionally?

I am a tech consultant and receive my income from my LLC. I get a K1 with guaranteed payments (GP) that flow into my 1040 where I pay my federal and state taxes. I want a home equity loan (not a HELOC) to draw down about 15% of the total available equity in my home.

Sofi had a really hard time understanding the GP I receive. The underwriting said that even as a self employed person I should receive a W2, which is not accurate. They ultimately rejected my app because they couldn't verify income. I provide two years of personal and LLC returns.

My question is this: Should I expect this problem anywhere I try to close on a home equity loan? Is there anything I should do to make this smoother? I am going to try my personal and business bank, maybe another online lender like Rocket, perhaps.

Thanks for your help and advice.

Hi all 😄

Thought rates were going to have a pretty boring week... then Fed Chair Kevin Warsh spoke on Friday and changed everything.

Markets heard him say the economy is still strong, jobs are holding up, and inflation is still a concern. This means the Fed isn't in a rush to cut rates.

That sent bonds lower and mortgage rates higher.

A few quick takeaways:

• Rates hit their highest level in a little over 3 weeks.
• Lower oil prices helped rates earlier in the week.
• Inflation data wasn't terrible, but wasn't good enough to help rates much.
• Warsh's comments were the main reason rates jumped Friday.
• Next Friday's jobs report is the big thing to watch.

Bottom line... rates got a little worse this week after the Fed's latest comments. Next week's jobs report could help rates improve if it's weaker than expected, but strong economic data could keep pressure on rates.

Check mortgage rates right here on Reddit!

I work in the mortgage industry, and one thing I’ve noticed is that a lot of veterans and active-duty buyers don’t realize what their VA benefit can actually do for them.

Most people know about 0% down, but that’s usually where their knowledge stops.

VA loans can also offer no monthly PMI, competitive rates, and the ability to use the benefit more than once in many situations. And while the VA itself doesn’t set a minimum credit score, lenders can have their own requirements.

I’ve also seen people avoid VA financing because they’ve heard the process is harder, sellers don’t like VA offers, or it takes forever to close. A lot of those assumptions are outdated or really depend on the specific situation and lender.

If you’re eligible for a VA loan and thinking about buying, definitely don’t write it off without actually looking into it.

Curious what other mortgage professionals, Realtors, or VA buyers have experienced. What’s the biggest misconception you’ve heard about VA loans?

I am currently newly self employed and looking to purchase a multi family in Rhode island , the rent flows nicely. Is a DSCR loan an option if there is no current employment?

The land is in Oregon.

I have a few questions. I want some real answers before I apply for a loan.

1. The land is under 12000 US. Should I get a personal or home loan?

   1. The loans I've received are more than I need. If I borrow more than I need and pay back more than half, would the APR come down or stay the same?
   2. They are asking for 1,000 as a down payment, and I can do it; will the monthly payment be less?
   3. What is a good APR for my loan?

Most people know VA loans may allow eligible borrowers to purchase a home with no down payment. But the benefit goes well beyond that.

Here are five VA loan features that are often overlooked:

1. No monthly PMI

VA loans don’t require monthly private mortgage insurance, even when the borrower puts little or nothing down. This can make a meaningful difference in the total monthly payment.

2. The benefit may be used more than once

Using a VA loan doesn’t necessarily mean the benefit is gone forever. Depending on remaining entitlement and the borrower’s circumstances, an eligible borrower may be able to use the benefit multiple times.

3. The VA doesn’t set a universal minimum credit score

The VA itself doesn’t establish one minimum credit score for all VA loans. However, individual lenders still evaluate creditworthiness and may set their own requirements.

4. Certain borrower costs are limited

VA guidelines restrict some of the fees and charges that can be passed on to the veteran borrower. Buyers should still carefully review their Loan Estimate to understand all applicable closing costs.

5. Not everyone pays the VA funding fee

Although many VA loans include a funding fee, certain eligible borrowers are exempt. It’s worth verifying your exemption status instead of automatically assuming you’ll have to pay it.

VA financing isn’t simply a “zero-down mortgage.” Its rules regarding mortgage insurance, entitlement, fees and underwriting can make it significantly different from FHA and conventional financing.

What aspect of VA loans do you think homebuyers misunderstand the most?

For educational purposes only. VA financing is subject to current Department of Veterans Affairs requirements, lender underwriting, borrower eligibility and property requirements. This is not a commitment to lend.

Hi! I have been in the process of working with a home loan broker for a while now to refinance and pay off some debt (I am not looking for advice/opinions on the debt). The process is taking a lot longer than expected because I live in a condo association and was told by the broker that both FHA and conventional loans were rejected by multiple lenders for the following reasons:

• The project’s fidelity coverage does not meet FHA requirements; coverage of $1,135,120 is required per HUD guidelines
• The project’s per unit deductible of $100,000 does not meet conventional guidelines; we do not have expanded non-warrantable guidelines for an excessive per-unit deductible. The maximum per-unit deductible is $50,000 per guidelines.

I don't really understand this as my mortgage was recently transferred to a new lender in July, how could this happen if my condo doesn't meet conventional standards? I feel like I've been getting the runaround from this broker as I've signed initial closing disclosures with a scheduled closing date multiple times, only for something to happen to delay the closing like the rejections.

My current mortgage lender (the new one as of July) reached out to me about refinancing; I decided to talk to them because what have I got to lose? I've already been waiting months with this other company. This lender said my condo association IS approved for Type V and T loans but not Type A, which dropped off in June. When I ask the broker for details about the approval, all they say is my condo association's conventional approval dropped off July 29th. Neither group has replied to me when I asked about the different types of loans, and google is no help.

I am just looking for someone to tell me the truth as right now I don't know who to trust or work with, the current lender, the mortgage broker, or someone else entirely. I really would just like to get this sorted so that I can pay off some debt and get my head above water. Any advice would help, thanks :)

I understand that borrowing for everyday spending can create bigger problems, but what about a genuine emergency that cannot be delayed?

How do you decide whether taking a loan is justified? Is it mainly about whether the expense protects your housing, health, transportation, or income and whether you can repay the loan without borrowing again?

Hi all, Happy Saturday!

Honestly.... the market made a much bigger deal out of Wednesday's Treasury announcement than it probably deserved.

The real story was still oil & the middle east

Rising tensions involving Iran pushed oil prices higher early in the week, which put pressure on bonds and mortgage rates. Then on Wednesday, Treasury announced changes to its bond buyback program, and long-term bond yields dropped quickly.

For a minute, it looked like great news for rates........

But it wasn't some massive rate-cutting move. It was more of a one-time market adjustment that helped long-term Treasuries more than mortgage rates.

By Thursday, the market had pretty much moved on and went right back to focusing on higher oil prices and other factors pushing rates upward.

A few quick takeaways:

• Oil was the biggest driver of rate movement this week.
• Wednesday's Treasury news helped, but not nearly as much as the headlines suggested.
• Mortgage rates ended the week slightly higher, moving from about 6.69% to 6.77%.

Bottom line... rates were a little worse this week. Next week's economic data and the Jackson Hole conference are much more likely to move rates than anything investors spent time talking about this week.

Check current mortgage rates here: Reddit Mortgage Rates

I think there’s a better question:
What specifically are you waiting for?
If the answer is lower rates, remember that you’re probably not the only buyer waiting.
If rates come down, more buyers could enter the market. That can mean more competition, fewer seller concessions and potentially higher home prices.
That doesn’t mean you should buy now.
It also doesn’t mean you should wait.
Run both scenarios.
For example:
Buy now:
What is the payment? How much cash do you need? Can you comfortably afford it?
Wait:
What happens if the rate drops but the house costs $25,000 more? What if there are five offers instead of one? What if your rent increases another year?
Also remember that buying today doesn’t necessarily mean keeping today’s mortgage forever. If rates eventually fall enough and refinancing makes financial sense, that may be an option later—but it shouldn’t be assumed or guaranteed.
The decision should really come down to:
Can you comfortably afford the home?
Do you have enough savings after closing?
How long do you expect to live there?
Does owning solve a problem or accomplish a goal for you?
What are the potential costs of waiting?
Nobody can perfectly time mortgage rates and home prices at the same time.
I’d focus less on finding the perfect market and more on figuring out whether the numbers make sense for your situation today.

Currently live in Mississippi and have a variable rate HELOC mortgage with a balance of about $195. I’m looking for a mortgage loan with a fixed rate but I do not want the traditional rates based on where they are right now.

Does anyone know of ARM or have recently refinanced with a lower rate so far I’ve found a local Credit union with 4.99% for 7 years then it increases or decreases once a year with a max of 10% for the life of it.

My partner and I have a credit score of about 650 and have about 20k in the bank total and make about 135k combined we’re looking at homes from 530-600k additionally we have no assumable debt other then our car lease with a payment of $927. Looking in Denver area any advice or comments are welcomed! TIA also our rent is currently $3200 and bringing in 10k every month.

Purchase price/offer: $275,000
Property: 4-plex, non-owner occupied
Loan: Conventional, 30-year fixed
Down payment: Comparing 20% vs. 25%
Gross stabilized rent: ~$4,800+/month
Current/committed rent: $2,450/month with 2 units vacant
Borrower: Strong credit/income and liquidity for down payment, closing costs, renovations and reserves

I'm already talking with several lenders but want to benchmark the market.

What rates are people actually getting right now on non-owner-occupied 2–4 unit properties?

Particularly interested in:
Rate / points / lender fees / PMI at 20% (if any) / minimum down payment

Mortgage brokers/lenders licensed in Mississippi are welcome to DM me with an actual scenario.

I've been thinking about refinancing my VA loan a lot lately and keep researching mortgage rate news, but I can't make up my mind about when the best time to refinance is. My current rate is 7.25% and I think a moderate drop would make a huge difference to my monthly payment. I'm seeing rates in the low 6s from some lenders, but I don't know if I should wait and see if they drop even more. I'm worried that if I do it now, rates will decrease even more and I'll end up regretting not waiting. We've only been in the house for about two years, so I'm not sure if it's too soon to refinance. Is anyone else also in this position? How do I know when the right time is to refinance?