[ad_1]
Here are the basic criteria Regions requires mortgage borrowers to meet.
Credit Score
Regions doesn’t disclose the minimum credit score borrowers need to qualify for any of its mortgage products.
The vast majority of borrowers who got a purchase or refinance mortgage from Regions in 2021 had a credit score of at least 720, according to the company’s annual report to shareholders. However, a small percentage of borrowers were able to get loans with a score below 620. As a rule of thumb, we recommend having a good FICO credit score of at least 670.
Down Payment
Regions offers first-time homebuyer loans with as little as 0% down—but the company does not provide further details about these loans, such as where they’re available and who might qualify.
Traditional first-time homebuyer programs sometimes offer 0% down payments or work with state and local down payment assistance programs. If you’re interested in using these programs, you typically need to buy a home in an underserved area, work in a qualifying occupation or have a low-to-moderate income for the area where you’re buying.
For other types of loans, competing lenders typically allow a down payment as low as 3% or 5% on conventional loans, 3.5% on FHA loans and 0% on VA loans. Regions may have similar requirements, but you’ll have to speak with a loan officer to find out. Regions allows 0% down on doctor loans up to certain limits.
Debt-to-Income Ratio
Regions does not disclose the maximum debt-to-income (DTI) ratio it allows on its loans. Mortgage investors such as Fannie Mae and Freddie Mac generally limit borrowers to a DTI of 50% or less. Lenders can impose tighter requirements, and they often do, especially if you have a low down payment or credit score.
[ad_2]
Source link