At minimum, you must have a median FICO ® Score of 620 or higher, among other qualifications. The minimum score for a Jumbo Smart loan from Rocket Mortgage ® is 680 or better.
You’ll get the best mortgage rates on conforming loans, or mortgages that are eligible for resale to Fannie Mae or Freddie Mac after origination. If you’re applying for a nonconforming loan, you won’t have to comply with these rules.
In order to qualify for a conforming mortgage through delayed financing, you must comply with their rules. Fannie Mae is the largest purchaser of mortgages by far, so you’ll most likely have to meet its requirements to be eligible for delayed financing. Let’s take a look at those:
- Your new loan amount can’t be higher than the total of what you paid for the home, including the purchase price, closing costs, prepaid fees and points.
- Your original purchase had to have been what’s called an “arm’s length transaction.” That means you can’t be related to or have a personal relationship with the seller. For example, you can’t buy a house with cash from your parents, your boss or your friend and then get delayed financing on it.
- You need to provide proof that you paid in cash, like your Closing Disclosure, settlement documents or recorded trustee’s deed showing that no mortgage was used to obtain the property.
- You have to share documentation of the source of the funds you used to purchase the house.
- If you use savings earned from your employment income or an unsecured loan like a personal loan, you’d need to share the documentation of those transactions. Continue reading What Are Fannie Mae’s Eligibility Requirements For Delayed Financing?