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Mortgage

Wyoming First-Time Homebuyer Programs

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The reasons to buy your first home in Wyoming are too varied to list. Some of the world’s most celebrated national parks? Check. No personal income taxes? Check. A plethora of programs designed to make buying easier if you’re a first-time homebuyer? Check and check!

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We researched the first-time homebuyer programs available in Wyoming in February 2019 and put together the results in this guide.

Wyoming first-time homebuyer programs

From low-interest mortgages to homebuyer education, the Wyoming Community Development Authority (WCDA) is a one-stop shop for help buying your first home. Created in the 1970s with a mission to make housing more affordable in Wyoming, the WCDA offers a number of programs that might put you in a new home.

First-Time Home Buyer program

What is it?

  • A 30-year mortgage
  • Offers low interest rates
  • Can be used with Home$tretch Down Payment Assistance program

What are the requirements?

To qualify for the First-Time Home Buyer program, you must:

  • Be a first-time homebuyer.
  • Be buying a single-family home.
  • Live in the home as your primary residence.
  • Be buying a property on six acres or less.
  • Complete a homebuyer education course.
  • Be buying a property within purchase limits, which range from $271,160 to $625,760, depending on location.
  • Meet maximum income limits of $80,400 to $118,200 for a one- to two-person household, depending on location. For a three- to four-person household, limits range from $92,460 to $137,900, depending on location.

How to apply

If you haven’t owned a home in at least three years, you’re considered a first-time homebuyer in Wyoming. Think you fit the other criteria for the WCDA first-timer program? You’ll need to talk to a WCDA-approved lender to start the process of getting preapproved for a mortgage.

Spruce Up program

By combining a purchase loan and a renovation loan into just one mortgage, WCDA’s Spruce Up helps reduce closing costs and other fees associated with doubling up on loans. It’s perfect for that fixer-upper you have your eye on.

What is it?

  • A loan that combines purchase and renovation costs
  • Has fewer closing costs
  • Can be used with Home$tretch Down Payment Assistance program

What are the requirements?

To qualify for the Spruce Up program, you must

  • Be a first-time homebuyer.
  • Be buying a home within maximum purchase price limits, which range from $271,160 to $625,760, depending on location.
  • Meet maximum income limits set by WCDA. Buyers living in households of one to two people cannot have an income higher than $80,400 to $118,200 (depending on location). Buyers in households of three to four people are limited to incomes between $92,460 and $137,900 (depending on location).

How to apply

Your first step is to contact a WCDA-approved lender. They’ll help you see if you qualify and work with you to apply for the loan.

Advantage program

Available to first-time and repeat homebuyers, the Advantage program has no purchase price limits. That widens the choice of homes you have when house-hunting.

What is it?

  • A 30-year fixed-rate mortgage or refinance loan
  • Has no purchase limits
  • Can be used with the WCDA Mortgage Credit Certificate program or the Amortizing DPA Loan

What are the requirements?

  • Open to first-time homebuyers and repeat homebuyers.
  • Homes must be situated on six acres or less.
  • Buyers must live on the property for at least one year as a primary residence.
  • Must have a minimum credit score of 620.
  • First-time homebuyers must complete homebuyer education.
  • Your annual income cannot exceed $110,000.

How to apply

If your score is high enough and you meet other criteria, apply with a WCDA-approved lender to find out if you qualify.

HFA Preferred program

The HFA Preferred loan can be used for buying a new home or refinancing an existing property.

What is it?

  • A 30-year fixed-rate loan
  • Has no purchase limits
  • Can be used with the WCDA Mortgage Credit Certificate program or the Amortizing DPA Loan

What are the requirements?

  • Open to first-time and repeat homebuyers.
  • You must have a credit score of 620 or higher.
  • Buyers living in households of one to two people are limited to a maximum income of $80,400 to $118,200 (depending on location). Buyers in households of three to four cannot have incomes higher than $92,460 and $137,900 (depending on location).
  • If you’re a first-time homebuyer, you must complete homebuyer education.
  • You must live in the home for at least one year.
  • Homes must be on six acres or less.

How to apply

Your first step is to contact a WCDA-approved lender. They can help you see if you qualify for the HFA Preferred program and guide you through the application and borrowing process.

Home$tretch Down Payment Assistance (DPA) Loan Product

One of two down payment assistance programs offered by WCDA, Home$tretch allows you to pay off your down payment over the life of your mortgage. That’s because there’s no monthly payment required on this loan, and it doesn’t come due until the end of the life of the mortgage.

What is it?

  • A down payment loan of up to $10,000
  • Offers a 0% interest rate and 0.08% APR based on an average loan amount of $5,500
  • Has no monthly payments
  • You’ll have to repay the loan when you sell or refinance the home, or when you pay off the mortgage

What are the requirements?

To qualify for the Home$tretch DPA Loan, you’ll need to

  • Be a first-time homebuyer
  • Use the loan with the WCDA First-Time Home Buyer or Spruce Up loan
  • Have a minimum credit score of 620
  • Contribute at least $1,500 of your own money to the down payment

How to apply

To find out if you qualify, contact a WCDA-approved lender. They’ll walk you through the application process and help you with the loan if you’re approved.

Amortizing DPA Loan Product

The second of two WCDA down payment assistance programs, the Amortizing DPA Loan spreads the cost of a down payment over as much as 10 years.

What is it?

  • Down payment assistance
  • Offers a fixed interest rate
  • Offers fully amortizing, low monthly payments
  • May be used with the HFA Preferred or Advantage programs
  • Maximum 10-year term

What are the requirements?

  • To qualify for the Amortizing DPA Loan, you must
  • Be a first-time homebuyer
  • Have a minimum credit score of 620
  • Put up at least $1,500 of your own money as a down payment

How to apply

You can apply with a WCDA-approved lender while applying for an Advantage or HFA Preferred loan. The lender will help you see if you qualify and guide you through the borrowing process.

Mortgage Credit Certificate

Buyers who use a qualifying WCDA loan may be able to take advantage of this tax credit program as well. This is a federal tax credit, which directly reduces the amount of tax you pay. You’ll get the credit every year, and it’s based on how much annual interest you pay on your mortgage.

What is it?

  • A federal tax credit
  • Available for the life of your mortgage

What are the requirements?

  • Open to first-time homebuyers
  • May only be combined with the HFA Preferred or Advantage loans
  • Can only be used on a homeowner-occupied property

How to apply

To find out if you qualify, check with a WCDA-approved lender.

More help at the national level

The WCDA seemingly has something for everyone, but they’re not the only game in town. There are lots of national first-time homebuyer programs open to buyers across the country. To learn more, check out LendingTree’s guide to national first-time homebuyer programs. (MagnifyMoney is owned by LendingTree.)

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By clicking “See Rates”, you will be directed to LendingTree. Based on your creditworthiness, you may be matched with up to five different lenders in our partner network.

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Mortgage

How to Recover From Missed Mortgage Payments

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

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understanding good faith estimate vs loan estimate
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Can you bounce back from a missed mortgage payment or two? The answer is yes, but there’s work involved. After all, your payment history has the greatest impact in determining your credit score.

Falling behind on your mortgage payments can affect your credit and finances, and you could lose your home to foreclosure. It’s critical to be proactive and not wait until it’s too late to get help.

How missed mortgage payments affect your credit

In most cases, mortgage lenders give you a 15-day grace period before charging a fee — often around 5% of the principal and interest portion of your monthly payment — for late payments. But your credit history typically isn’t impacted until you’re at least 30 days behind on a mortgage payment. At this point, your mortgage servicer may report your late mortgage payment to the three major credit reporting bureaus: Equifax, Experian and TransUnion.

Your credit score could drop by 60 to 110 points after a late mortgage payment, depending on where your score started, according to FICO research. Being 90 days late on your loan could lower your score by another 20 points or more.

It can take up to three years to fully recover from a credit score drop after being a month behind on your mortgage, FICO’s research found. Once you’re three months behind on your mortgage, that time can increase to seven years.

Recovering from missed mortgage payments

Falling behind on your mortgage can be a frustrating and scary experience, particularly if you’re facing the threat of foreclosure. Here are some options to help you get back on track after missed mortgage payments:

  • Repayment plan. Your loan servicer agrees to let you spread out your late mortgage payments over the next several months to bring your loan current. When your upcoming payments are due, you’d also pay a portion of the past-due amount until you catch up.
  • Forbearance. Your servicer temporarily reduces or suspends your monthly mortgage payments for a set amount of time. Once the mortgage forbearance period ends, you’ll repay what’s owed by one of three ways: in a lump sum, a repayment plan or by modifying your loan.
  • Modification. A loan modification changes your loan’s original terms by extending your repayment term, lowering your mortgage interest rate or switching you from an adjustable-rate to a fixed-rate mortgage. The goal is to reduce your monthly payment to a more affordable amount.

Be proactive about getting back on track and reaching out to your lender for help instead of waiting until you get late payment notices. If you think you’ll be behind soon or are already a few days behind, make contact now and review your options.

Extra help for homeowners affected by COVID-19

If you’re behind on mortgage payments because of a financial hardship due to the coronavirus pandemic, you may qualify for a mortgage relief program through the Coronavirus Aid, Relief and Economic Security (CARES) Act.

Homeowners who have federally backed mortgages, and conventional loans owned by Fannie Mae or Freddie Mac, can request mortgage forbearance for up to 180 days. They can also request an extension for up to an additional 180 days.

Federally backed mortgages include loans insured by the:

  • Federal Housing Administration (FHA)
  • U.S. Department of Agriculture (USDA)
  • U.S. Department of Veterans Affairs (VA)

Reach out to your mortgage servicer to request forbearance. Even if your loan isn’t backed by a federal government entity, Fannie Mae or Freddie Mac, your servicer may offer payment relief options. You can find your servicer’s contact information on your most recent mortgage statement.

How many mortgage payments can you miss before foreclosure?

Your lender can begin the foreclosure process as soon as you’re two months behind on your mortgage, though it typically won’t start until you’re at least 120 days late, according to the Consumer Financial Protection Bureau. Still, it’s best to check your local foreclosure laws since they vary by state.

Here’s a timeline of how missed mortgage payments can lead to foreclosure.

30 days late

Your lender or servicer reports a late mortgage payment to the credit bureaus once you’re 30 days behind. Your servicer will also directly contact you no later than 36 days after you’re behind to discuss getting current.

45 days late

You’ll receive a notice of default that gives you a deadline — which must be at least 30 days after the notice date — to pay the past-due amount. If you miss that deadline, your servicer can demand that you repay your outstanding mortgage balance, plus interest, in full.

Your mortgage servicer will also assign a team member to work with you on foreclosure prevention options. This information will be communicated to you in writing.

60 days late

Once you’re 60 days late, expect more mortgage late fees, as you’ve missed two payments. Your servicer will send you another notice by the 36th day after the second missed payment. This same process applies for every month you’re behind.

90 days late

At 90 days late, your servicer may send you a letter telling you to bring your mortgage current within 30 days, or face foreclosure. You’ll likely be charged a third late fee.

120 days late

The foreclosure process typically begins after the 120th day you’re behind. If you live in a state with judicial foreclosures, your loan servicer’s attorney will file a foreclosure lawsuit with your county court to resell the home and recoup the money you owe. The process may speed up in nonjudicial foreclosure states, because your lender doesn’t have to sue to repossess your home.

You’re notified in writing about the sale and given a move-out deadline. There’s still a chance you can keep your home if you pay the amount owed, along with any applicable legal fees, before the foreclosure sale date.

Can you get late mortgage payment forgiveness?

If you’ve otherwise had a good payment history but now have one missed mortgage payment, you could try writing a goodwill adjustment letter to request that your servicer erase the late payment information from your credit reports.

Your letter should include:

  • Your name
  • Your account number
  • Your contact information
  • A callout of your good payment history prior to missing a payment
  • An explanation of what led to the late mortgage payment
  • The steps you’re taking to prevent late payments in the future

End the letter by requesting that your servicer remove the late payment from your credit reports, and thank your servicer for their consideration. Print, sign and mail your letter to your servicer’s address.

The letter is simply a request; your servicer isn’t required to grant late mortgage payment forgiveness. If your servicer agrees to remove the late payment info from your credit reports, your credit scores may eventually increase — so long as you continue to make on-time payments.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

By clicking “See Rates”, you will be directed to LendingTree. Based on your creditworthiness, you may be matched with up to five different lenders in our partner network.

Advertiser Disclosure

Mortgage

What Is the Minimum Credit Score for a Home Loan?

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Written By

If you’re hoping to become a homeowner, your credit score may hold the keys to realizing that dream. Knowing the minimum credit score needed for a home loan gives you a baseline to help decide if it’s time to apply for a mortgage, or take some steps to boost your credit first.

It’s possible to get a mortgage with a score as low as 500 if you can come up with a 10% down payment. Keep reading to learn the minimum credit score requirements for the most common loan programs.

What are the minimum credit scores for home loans?

Your credit score plays a big role in determining whether you qualify for a mortgage and what your interest rate offers will be. A higher credit score means you’ll likely get a lower rate and a lower monthly mortgage payment.

There are four main types of mortgages: conventional loans, and government-backed loans insured by the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA) and the U.S. Department of Agriculture (USDA). Conventional loans, which are the most common loan type with guidelines set by Fannie Mae and Freddie Mac, have a credit score minimum of 620. Although some loan programs don’t specify a minimum credit score needed to qualify, the approved lenders who offer them may set their own minimum requirements.

The table below features the minimum credit scores for these home loans, along with minimum down payment amounts and for whom each of the loans is best.

Loan type

Minimum credit score

Minimum down payment

Who it’s best for

Conventional6203%Borrowers with good credit
FHA500-579 with 10% down payment
580 with 3.5% down payment
10% with a score of 500-579
3.5% with a minimum score of 580
Borrowers who have bad credit and are purchasing a home at or below their area FHA loan limits
VANo credit minimum, but 620 recommendedNo down payment requiredActive-duty service members, veterans and eligible spouses with VA entitlement
USDA640No down payment requiredBorrowers in USDA-eligible rural areas with low- to moderate-incomes

What is a good credit score to buy a house?

Meeting the minimum score requirement for a home loan will limit your mortgage options, while higher credit scores will open the doors to more attractive rates and loan terms. A good credit score can also provide you with more choices for home loan financing.

  • 740 credit score. You’ll typically get your best interest rates for a conventional mortgage with a 740 (or higher) credit score. If you make less than a 20% down payment, you’ll pay for private mortgage insurance (PMI). PMI protects the lender in case you default on your home loan.
  • 640 credit score. Rural homebuyers need to pay attention to this benchmark for USDA financing. Exceptions may be possible with proof that the new payment is lower than what you’re paying for rent now.
  • 620 credit score. The bare minimum credit score for conventional financing comes with the largest mark-ups for interest rates and PMI.
  • 580 credit score. This is the bottom line to be considered for an FHA loan with a 3.5% down payment.
  • 500 credit score. This is the lowest credit score you can have to qualify for an FHA loan, but you must put 10% down to qualify.

Annual percentage rates by credit score

Your mortgage rate is a reflection of the risk lenders take when they offer you a loan. Lenders provide lower rates to borrowers who are the most likely to repay a mortgage.

Here’s a glimpse of the annual percentage rates (APRs) and monthly payments lenders may offer to borrowers at different credit score tiers on a $300,000, 30-year fixed loan. APR measures the total cost of borrowing, including the loan’s interest rate and fees.

FICO Score

APR

Monthly Payment

760-8503.011%$1,267
700-7593.233%$1,303
680-6993.410%$1,332
660-6793.624%$1,368
640-6594.054%$1,442
620-6394.6%$1,538
*Based on national average rate data from myFICO.com for a $300,000, 30-year, fixed-rate loan as of May 4, 2020.

As the credit score ranges fall, the interest rates are higher. Borrowers with a score of 760 to 850, the highest range, saw an average monthly payment of $1,267. Borrowers in the lowest credit score tier of 620 to 639 saw their monthly payment jump to $1,538. The extra $271 in monthly payments adds up to an additional $97,560 in interest charges over the life of the loan.

Steps for improving your credit score

Now that you have an idea of the extra cost of getting a minimum credit score mortgage, follow some of these tips that may help boost your score.

  • Make payments on time. It may seem obvious, but recent late payments on credit accounts hit your scores the hardest. Set your bills on autopay if possible to avoid forgetting to pay one.
  • Pay off balances monthly. Try to pay your entire balance off each month to show you can manage debt responsibly.
  • Keep your credit card balances low. If you do carry a credit card balance, charge 30% or less of the available credit limit on each account.
  • Have a mix of different credit types. Mortgage lenders want to see you can handle longer-term debt as well as credit cards. A car loan or personal loan will help demonstrate your ability to budget for installment debt payments over time.
  • Avoid applying for new accounts. A credit inquiry tells your lender you applied for credit. Even if you were applying to get your best deal on a credit card or car loan, multiple inquiries could drop your scores, and give a lender the impression you’re racking up debt.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.