Is there any lender that will do a no money down/low rate with a 651 credit score.:confused?:confused:

You will have to try numerous lenders and find out. Along with credit score they check to see your debt to income ratio and payment history. You can go to a site like lendingtree.com or lowermybills.com to find out. If you have been using the same bank/credit union for awhile they may give you a better rate.

You need to understand risk factors. Lenders want to minimize their risk in the borrower defaulting on the loan and their ability to recover the money lent. They don't want to lose. So when there is no down payment, it means no equity. If the value of the house doesn't increase, the lender may not be able to recoup their funds in case of a default and a foreclosure. If the borrower's credit history is not too good, this increases the possibility of default. In some cases a lender might decide to risk the loan, but at a higher rate to justify the risk.

So you are dealing with a triple whammy. No down payment, medium credit history and you want an affordable rate. You MIGHT find a lender if you shop around, but its unlikely you will get a low rate without a down payment and an exemplary credit history.

There are mortgages put out by FNMA that have a no down payment required. They are called Flex 100. You can have no money down and the seller can pay 3% of the selling price in closing costs. I will double check the minimum score for you and get back to you. But I don't think it has to be in the high 600's. Of course you have to meet income requirements and you will have to contribute at least $500.00 to the transaction from your own funds.